Do You Want to Know More About:
- Assessing employee performance fairly and accurately?
- Motivating employees and teams to perform at their maximum capacity?
- Providing effective performance feedback and coaching?
- Developing employee performance plans that are aligned with organizational goals?
Performance Management Is the Key
Well-developed performance management programs benefit organizations by:
- Aligning employee performance with the organization's strategic goals.
- Ensuring that employees receive fair, consistent, and accurate performance feedback that clearly outlines expectations.
- Increasing employee motivation and engagement through developmental coaching and feedback discussions.
- Ensuring performance appraisal processes are legally defensible.
How Can I/O Psychologists Help?
- Develop Performance Appraisal Tools. I/O psychologists can analyze jobs and develop performance appraisal tools that ensure all supervisors are calibrated to have the same understanding of how poor, average, and above average performance is identified.
- Develop Structured Rating Processes. I/O psychologists can develop performance management systems that facilitate ongoing performance monitoring and incentivize regular feedback to employees.
- Train Performance Raters. I/O psychologists can train performance raters to identify and avoid common ratings biases so that ratings are as fair and accurate as possible. I/O psychologists can also train performance raters on how to provide coaching and feedback to employees in ways that increase motivation and facilitate performance enhancement.
- Set Performance Objectives. I/O psychologists can set specific performance objectives and goals for employees based on scientific evidence that map to the organizations’ strategic goals and maximize employee motivation.
- Develop Compensation Systems. I/O psychologists can create and implement compensation systems that are aligned with the organizations’ strategic goals and are supportive of organizational values and culture (e.g., pay-for-performance systems), as well as identify other types of incentives that are valued by employees.
- Conduct Legal Audits and Provide Expert Witness Testimony. I/O psychologists are uniquely qualified to audit an organization’s performance management program and identify potential legal risks; they can also serve as expert witnesses in performance management cases.
- Develop and Administer 360 Surveys. I/O psychologists can develop, implement, and coach to 360-degree feedback surveys that provide participants with detailed feedback regarding how their performance is viewed by supervisors, peers, direct reports, and/or clients and customers.
Performance Management Needs: An Example
The following is an example of an organization facing performance management challenges:
- A large retail chain was faced with low employee engagement in stores and declining sales.
- The existing annual performance review system for supervisors in stores consisted of three items related to overall performance.
- The majority of managers rated their employees as “superior” to maximize the provision of merit pay, which was linked to these ratings.
- Cost saving measures in the organization necessitated a new performance review system that accurately defined and tracked performance and rewarded only the highest performers.
Performance Management Needs: The Solution
I/O psychologists helped this organization by:
- Analyzing the store supervisor position and identifying the critical tasks performed on the job.
- Interviewing key leaders in the organization to determine the organization’s strategic goals and how the store supervisors’ behavior was tied to those goals.
- Developing a performance appraisal process to reward behaviors directly related to the organization’s strategic goals.
- Training managers to use the new performance rating process in a consistent and unbiased manner.
- Aligning the organization’s compensation system to reward performance directly related to meeting strategic objectives.
Performance Management Needs: The Results
This organization benefited by realizing the following results*:
- Sales increased by 30%.
- Store-level employee engagement (as rated in an annual employee survey) increased by 40%. The largest increase was on survey items related to finding meaning in one’s work and having a clear understanding of how one’s work affects the organization as a whole.
- Turnover decreased by 25%.
*The results here are an example of potential outcomes using the solution delineated above.