EVO Ultra - Appraisals Question for Jupiter Group 24 March

EVO Ultra - Appraisals Question for Jupiter Group 24 March

We believe that putting people first leads to better businesses

Anatomy of an engaging performance review A whistle-stop tour of the essentials for the EVO Ultra Mercury Group Presented by: Andrew Knight 24 th March 2022

© Andrew Knight, 2022

© Andrew Knight, 2022

A shift in workplace culture

Past

Present

Future

Paycheck

Lifestyle

Purpose

Job

Career

Portfolio

My manager

My leader

My coach (and mentor)

Annual appraisal

Regular review

Ongoing conversations

Employee deference

Employer accountability

Activism and advocacy

Job security

Job uncertainty

Free agents

Source: Adapted from Gallup 2017

Equal opportunities

Diversity and inclusion

Celebration and belonging

© Andrew Knight, 2022

Image: Star Wars: The Empire Strikes Back, 1980 Lucasfilm Ltd. © Andrew Knight, 2022

Image: The Hunger Games: Catching Fire, 2013, Lionsgate

© Andrew Knight, 2022

The case for performance reviews

Managers who involve employees in goal-setting are 3.6x more likely than other employees to be engaged

Employees who receive daily (vs. annual) feedback from their manager are 3.0x more likely to be engaged

Engaged employees generate 43% more revenue than disengaged employees

Source: Adapted from Hay Group 2009, MacLeod 2009, IMB 2015, CLB 2008

High engagement can lead to 3x profit growth, reduce staff turnover by 87% and improve performance by 20%

© Andrew Knight, 2022

Where are you today? Do you…

Have accurate role profiles/JDs?

Measure input, output and/or outcomes?

Set goals and reprioritise regularly?

Continually coach and advise your team?

Review what and how work is done?

Consider a range of feedback sources?

© Andrew Knight, 2022

Set clear expectations

50%

41%

44%

50% of employees clearly know what is expected of them at work

41% of employees strongly agree that their JD/role profile reflects the actual work that they do

44% of employees see a connection between their goals and their organisation’s goals

Source: Gallup 2017, Effectory 2019, McKinsey 2021 © Andrew Knight, 2022

84% intention to stay

2.5x engagement

3.5x engagement

Designing my review

Agree clear objectives with me at the outset, measure my performance regularly, don’t move the goalposts

Focus me with high role clarity and emotional purpose

Give me absolute line-of-sight between your strategic objectives and my personal objectives

© Andrew Knight, 2022

Where are you today? Do you…

Have accurate role profiles/JDs?

Measure input, output and/or outcomes?

Set goals and reprioritise regularly?

Continually coach and advise your team?

Review what and how work is done?

Consider a range of feedback sources?

© Andrew Knight, 2022

Involve me

30%

20%

30% of employees strongly agree their manager involves them in goal setting.

100% of employees that had development conversations with their manager were almost 3 times more engaged

20% of employees have recently talked with their manager about the steps needed to reach their goals

≅ 4.0x engagement 2.8x engagement

Source: Gallup 2017, Effectory 2019, McKinsey 2021

2.8x engagement

© Andrew Knight, 2022

Involve me

Source: Adapted from Gallup, 2017 © Andrew Knight, 2022

Designing my review

Give me regular and meaningful feedback; don’t save things up for a formal review

Involve me in decisions to reprioritise my workload in real-time and explain why it’s necessary

Meet with me monthly for a structured review and if that’s not possible, no less than every six months

© Andrew Knight, 2022

Where are you today? Do you…

Have accurate role profiles/JDs?

Measure input, output and/or outcomes?

Set goals and reprioritise regularly?

Continually coach and advise your team?

Review what and how work is done?

Consider a range of feedback sources?

© Andrew Knight, 2022

Get rid of complex policies and rules

Constrain the box to constrain the bias § Open box = open bias § Do you need 5 performance rankings when 3 will do? § Adobe and Accenture abandoned annual appraisals in 2012 and 2016 respectively § Decouple pay from tenure and performance

Train, review, calibrate, evaluate, redesign § GE binned 30 years of forced rankings in favour of regular performance check-ins § Deloitte introduced system to recognise performance and potential in 2015 § Microsoft has recognised collaboration and development since 2013

§ Amber Energy just introduced gender neutral family policy. § Netflix expenses policy “Act in Netflix’s best interests” § Bupa uniform policy “Dress for your day” § Virgin offered unlimited paid time-off from 2014

© Andrew Knight, 2022

Designing my review

Leave as little room for subjectivity in the review process as possible; close the box, close the bias

Prioritise feedback from a broad range of sources and be transparent about the emphasis placed on them

Build reflective practice (action learning) into my review and allow me to lead it

© Andrew Knight, 2022

So, what does good look like?

Review my energy, engagement, wellbeing, resilience, skills, personal development and priorities

Balanced scorecard which measures WHAT I’ve achieved and how I’m progressing

Feedback from colleagues, customers, peers and my manager on HOW I’ve behaved – 360° is a start

Goals and commitments: what I’m doing next and what my manager is doing to support me

© Andrew Knight, 2022

Image: Star Wars: Return of The Jedi, 1983 Lucasfilm Ltd.

© Andrew Knight, 2022

Image: The Hunger Games: Mockingjay Part 2, 2015, Lionsgate

© Andrew Knight, 2022

Key takeaways

There is no magic formula, but regular and meaningful is a good rule of thumb

The most innovative organisations are moving away from annual appraisals entirely; could you?

Forms, systems, templates and guidance are fine, but managers need to be self-aware and tailor their approach

© Andrew Knight, 2022

Feedback

The key things we have discovered

The outstanding questions we still have

© Andrew Knight, 2022

Here to help

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About us

The Spark Company (Human Resources) Ltd • Expert HR and change consultants • ‘Putting people first leads to better businesses’

Andrew Knight • Public, private and not-for-profit background • Passionate about positive workplace culture • Involved in 100+ acquisitions from 2015-2019 • Experience transforming HR services and systems at Bupa to benefit 8,500+ colleagues

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