Forbes: Time to Scrap Performance Appraisals?

3b1cbec1Our Summary: Companies are radically changing their performance appraisal processes moving away from annual long-cycle appraisals towards short-cycle ongoing workflows.  Annual reviews are an artifact of the past – they cause significant problems and the industry is evolving.  Many are hesitant to embrace change, and the article offers some guidance, which is primarily focused on employee/goal-centric view with regular feedback loops.

Our opinion: we agree and consider ourselves to one of the pioneers in short-cycle live-360 appraisal process systems. Continue reading

HBR: How Criticizing in Private Undermines Your Team

userpic-2060-100x100Our Summary: Criticizing employees in private is not healthy for the team.  A better approach is to, respectfully, raise the issue in a team meeting driving, peer accountability.

This relates to FairSetup in a huge way – the very process that we recommend to our clients encourages group feedback.  There are several elements here: Continue reading

HBR Blog: When Your Incentive System Backfires

userpic-841-100x100The author goes to an Asian city and tries to get on the bus.  The bus keeps passing by.  Why?  Because the bus driver’s bonus is connected to being on time, not servicing customers, resulting in a behavior that is opposite to that which would be optimal.  This model is the focus of the article.  Conclusion: be careful about identifying what’s important and how you drive participation. Continue reading

ERE: 50 Top Problems with Performance Appraisal – the Most Dreaded HR Process

imageIt was fascinating for us to read about the Top 50 problems with Performance Appraisals on ERE.  It was even more amusing to identify how FairSetup addresses most of these problems.

The article written by Dr. John Sullivan starts out with a promising quote:

90% of performance appraisal processes are inadequate. –Salary.com survey

OK, something we already know.  He goes on to say:

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Daniel Pink TED Talk: The Puzzle of Innovation

On TED: http://www.ted.com/talks/dan_pink_on_motivation.html

An amazing talk by Daniel Pink that goes for the very heart and soul of FairSetup: that money is a foundation, not the driver.  This is one of the most important things about what we are doing at FairSetup – our approach is not actually about money.  It is about perception of fair – about removing that question from people’s minds so that hey can concentrate on what is important to them: mastery, autonomy, and purpose.

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HR Magazine: Is it time to give up on performance appraisals?

Our summary: Annual performance reviews have a reputation of being ‘useless’ and ‘unnecessary’ – but almost all companies still use them. This is because when done right, performance management increases employee engagement, lowers retention costs and encourages successful staff development. It also pushes managers to be better at their jobs. The article also notes the growing relevance of new technology in HR management, particularly web-based systems, while emphasizing the importance of bespoke appraisal methods.

FairSetup thoughts: By encouraging more regular performance evaluations, FairSetup helps companies improve their culture while promoting fruitful communication between employees and managers. This is an alternative approach to traditional performance management, as it sets up regular feedback loops and collects data over time, ensuring that no employee contribution is lost. This makes the retention process more cost-effective, and increases employee satisfaction.

By GABRIELLA JOZWIAK
Published: October 22, 2012

A recent US poll of 2,677 people (1,800 employees, 645 HR managers, and 232 CEOs) by San Francisco-based rewards-and-recognition consulting firm Achievers revealed 98% of staff find annual performance reviews unnecessary. Remember – among the 2,677 respondents, a quarter were HR professionals.

Edward Lawler, professor of business at University of Southern California, reacted by declaring: “Performance appraisals are dead.” But he also unveiled research showing 93% of companies use annual appraisals, and only 6% have considered dropping them.

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NYT: They Work Long Hours, but What About Results?

Our summary: generally spending time is mistaken for efficiency.  Cut down on meetings, focus on metrics, expectations, and outcomes.  You shouldn’t need to stay late or work on weekends to be efficient.  The last part of the article has a significant overlap with setting up expectations on when using the FairSetup model.

 

They Work Long Hours, but What About Results?
By ROBERT C. POZEN
Published: October 6, 2012

IT’S 5 p.m. at the office. Working fast, you’ve finished your tasks for the day and want to go home. But none of your colleagues have left yet, so you stay another hour or two, surfing the Web and reading your e-mails again, so you don’t come off as a slacker.

It’s an unfortunate reality that efficiency often goes unrewarded in the workplace. I had that feeling a lot when I was a partner in a Washington law firm. Because of my expertise, I could often answer a client’s questions quickly, saving both of us time. But because my firm billed by the hour, as most law firms do, my efficiency worked against me. Continue reading

TLNT: Being The Boss: Why is Becoming a Manager So Difficult?

Our Summary: most managers remain mediocre, because they fail to recognize the difference between managing others and managing themselves.  Such managers slip into comfortable coasting after making the initial transition into a management role and fail to grow into good managers.

FairSetup thoughts: we’ve noticed that FairSetup creates a very significant pressure on managers to evolve as they themselves become part of the evaluation cycle and are receive constant feedback from their reports.  The pressure from one’s boss can be mitigated with careful political maneuvering, but one’s reports generally have a much deeper understanding of whether the business unit is moving in the right direction and whether the manager is doing his or her part in the system. Continue reading