Page 1

What Gartner says about ‘Pay-for-Performance’ /2013/01/what-gartner-says-about-pay-f or-perf ormance/ Udhay Kuppuswamy

Excerpt s f rom Gart ner Report 227695 Many organizations f ind that their existing pay-f orperf ormance process doesn’t work well. It doesn’t improve perf ormance, and demotivates employees. Key Findings Many organizations do not believe they have a good pay-f or-perf ormance process. In f act, many f ind these programs do not increase perf ormance. Many employees f ind traditional perf ormance reviews unf air and demotivating. Many managers and executives are not good at providing employees with high-quality, consistent and timely perf ormance f eedback. Social recognition programs and solutions can help improve employee motivation and perf ormance, while decreasing reliance solely on manager and executive f eedback. Gartner Recommendations Test a social recognition program alongside your existing pay-f or perf ormance process. Quantif y any improvement in perf ormance f rom social recognition, compared with your existing pay-f or-perf ormance process. Adjust your investments in social recognition and traditional pay f or perf ormance programs based on results. Continue to adjust the balance between programs annually, as business needs change. Organizations will start to change their emphasis f rom top-down-driven, pay-f orperf ormance programs to more bottom-up f eedback, recognition and rewards. HR and IT leaders need to create a road map to take the best advantage of this opportunity to improve business perf ormance. Most organizations have f ocused on automating existing documents and f orms. Although some value has been delivered, in many respects, these solutions have just automated f laws that existed in paper-based approaches…Leading organizations will start to shif t away f rom topdown, individually f ocused, pay f or perf ormance to more bottom-up f eedback, recognition

and rewards. In addition, parts of traditional talent management activities will ef f ectively become crowdsourced. For example, managers and executives will be able to see the f requency, type and magnitude of f eedback f or each individual employee. More importantly, senior executives can use this data to see if manager perf ormance decisions align with what coworkers indicate through their actions. Bersin and Associates Findings Organizations which have intermediate or advanced talent management strategies, are experiencing tremendously greater business returns than those which are not: • 17% lower voluntary turnover rates • 41% lower turnover rates among high perf ormers • 26% higher median revenue per employee • 28% less likely to have had a major layof f .. • 109% more capable of retaining high perf ormers • 87% more capable of “hiring the best people” • 144% better at “planning f or f uture talent needs.” Source Bersin & Associates Talent Management Handbook. Synergita Recommends Step 1: Encourage everyone to provide continuous f eedback to each other (Qualitative comments combined with Flags and Badges when necessary). Call to action : Sign up for Synergita’s Continuous Feedback and Social recognition module. US$ 0.50 (50 cents) per user per month. Setup, Train and Roll out in one day. Step 2 : Choose a f ew managers who volunteer time and ef f ort f or personalized talent development f or their team members. Call to action : Open Synergita’s Review plan module only to those interested managers. US$ 1.0 per user per month. Setup, Training and Roll out in three days Step 3: Bring your perf ormance review templates more closer to your business and closer to your people. Call to action : Sign up for Synergita’s template building tool. Free for two HR Administrators per company. Step 4: Roll out complete Synergita suite to all employees in the organization Use the templates and methodologies already set up in Step 3. US$ 2.0 per employee per month For more information and guidance please register for a live one to one meeting with our experts.

Relat ed post s:

1. Perf ormance Management system f or New Age Organizations – Part 1

83 pdf  
83 pdf