What Matters to Employees
Lucia Rahilly kicks off by asking about what matters most to employees in driving strong performance. Brooke Weddle emphasizes the importance of clarity and simplicity. People want to know what they are accountable for, which leads to a sense of fairness. Simplicity often wins over loading too many factors into performance management. The role of the manager is crucial not only for evaluations but also for providing feedback and guiding employees on their development journey. However, managers often struggle to do this well at scale.
Bryan Hancock then highlights what good goal setting is not. It's not a sheet with 25 individual measures and complex weightings. Goal setting should be embedded in daily work, using tools like OKRs. Regular performance dialogues help employees understand their progress and focus on the critical few.
Goal Setting in a Portfolio Work Environment
In a world where jobs have become more portfolio-like, effective goal setting takes on a new dimension. It's about setting clear, achievable goals that are relevant to the portfolio nature of work. Managers need to help employees navigate this complexity and ensure that goals are aligned with the overall business objectives.
For example, in a marketing team with multiple projects, goals might be set for each project based on its importance and potential impact. Regular check-ins and feedback sessions help employees stay on track and make necessary adjustments.
Simplicity vs. Complexity in Performance Management
The research shows that it's not the ratings themselves that matter but knowing where you stand. Clear markers and indicators are more effective than ambiguous conversations about growth. Whether there are no ratings, a few ratings, or many ratings, how the system is implemented matters most.
For instance, a company that uses qualitative ways to describe progress during the pandemic found that employees were more motivated when they had clear feedback on their performance. This led to a focus on getting the execution right and improving the perception of fairness.
How to Approach Feedback
Lucia Rahilly asks about making feedback discussions simpler and more constructive. Brooke Weddle suggests setting a cultural mindset around continuous learning and prioritizing internal talent. Managers can also make feedback a part of daily work by creating rituals like weekly check-ins.
Bryan Hancock adds that managers often get burned out due to time constraints. They need to approach feedback conversations in a way that is both empowering and challenging. Instead of just pointing out mistakes, they should encourage employees to think about their actions and learn from them.
Hybrid Work and Manager Clarity
Lucia Rahilly wonders how hybrid work has affected managers' clarity about their employees' work. Bryan Hancock explains that periodic feedback is crucial, regardless of the work environment. Managers need to be deliberate about setting aside time for developmental feedback.
Brooke Weddle emphasizes the importance of thoughtfulness in understanding how work gets done relative to goals. In a hybrid environment, this becomes more complex and requires nuanced conversations between managers and employees.
Helping Managers with Challenging Conversations
Lucia Rahilly asks about facilitating better coaching for managers. Bryan Hancock suggests practicing challenging conversations and using gen AI to get feedback on feedback. This helps build skills and confidence.
Brooke Weddle also recommends simplifying processes. By taking a hard look at where value is derived, organizations can create more time for managers to focus on coaching and feedback.
Addressing Poor Performers
There is a need for early interventions and development conversations with poor performers. Managers should lean in when they see someone struggling and guide them towards improvement. But it's also important to have a fact-based record when it comes to removing people from roles.
For example, a manager might have regular one-on-one meetings with a struggling employee to understand their challenges and provide support. If improvement is not seen, a clear and objective record can be used to make difficult decisions.
How Important is Compensation?
Lucia Rahilly raises the question of the importance of money in performance management. Brooke Weddle highlights that more than half of respondents are motivated by a combination of financial and nonfinancial rewards. Nonfinancial rewards like growth opportunities and praise are equally important.
Bryan Hancock distinguishes between revenue-generating roles and other roles. In revenue-generating roles, compensation plays a more significant role, but overall, financial rewards matter in the broader context.
Reducing Bias in Assessing Impact
Lucia Rahilly discusses the gender pay gap and ways to reduce bias in assessing impact and performance. Brooke Weddle suggests looking at the "broken rung" where women are more likely to leave at certain levels. Organizations need to help women make transitions and pursue roles that lead to leadership.
Bryan Hancock emphasizes the need for unconscious-bias training and calibration meetings to ensure fair assessments. Managers also play a crucial role in guiding women to the right career tracks.
The Path Forward
Bringing it all together, Brooke Weddle is surprised by the importance of clarity in goal setting and continuous conversations. Bryan Hancock is hopeful that generative AI can help give managers more time and start a broader conversation about improving the performance management process.
Ultimately, it's about moving away from the bureaucratic aspects of performance management and focusing on the human element. By having clear goals, continuous feedback, and the right support, organizations can improve performance and employee engagement.