I had an employee contact me devastated by their last annual performance review. I was surprised to hear their concerns, I was not aware of any issues with this employee, then there it was - they had been rated “average”. The “average” review rating is a silent and destructive area in performance management. The concept of “average” can demotivate an employee and can encourage managers to inflate a review to avoid the conflict, but aren’t most of us average?
If you follow the GE, Jack Welch measurement, 80% of your employees are “average”, “satisfactory”, “competent”, but do you think 80% of your employees want to be thought of as average? If we are managing honestly and 80% of our employees are considered competent, what can we do?
This week, the Society of Human Resources Management posted a growth trend on this topic. They stated, in 2012 4% of employers were eliminating their ranking on their annual reviews and in 2014 it had grown to 12%. The report shares that businesses are moving away from qualitative “angst-ridden” traditional ranking systems to a more qualitative approach.
Is the solution that we modify our performance reviews to eliminate the ranking? When designing a review tool it should be just that a tool. A performance review is a tool can align individual employee’s behavior with your organization’s goals. It also documents when performance expectations are met. But a performance review tool and its overall rating won’t motivate an employee. An employee’s motivation will only be inspired by their manager’s daily behavior.
If the manager is motivating the employee everyday then a review rating should be consistent with that message. Well before delivering the written review the employee should know where they stand. If your employee is meeting your expectations they should know this and they should know why their contributions are important to the organization.
What are some ways a manager can communicate average in a motivating way throughout the year? Employees want to know how their behavior positively impacts the organization. So if you can frequently remind them using specific examples it provides employees with that valuable connection. There are many methods to provide frequent and ongoing feedback to your employees and how to communicate their strengths. I rely on the CCL created (Center for Creative Leadership) feedback model “SBI”– Situation, Behavior and Impact. I emphasize the “impact”, because it is in the “impact” portion of this model where you can communicate the most value with any employee.
I also like the SBI because it is simple and easy to use. Just remember, SBI. S or Situation, you communicate a specific situation or anchor point (during the morning meeting). You add the B or Employee’s Behavior (when you shared your conversation on a step that wasn’t working in our delivery system). Then for the most important step, add the “I” or impact. The impact their behavior had on the organization (we were able to reduce two hours on our time to delivery). No matter what the model you use, your manager feedback should be used with a high level frequency.
Any employee but especially your 80%, appreciate seeing the impact they have to the organization and can find security in their contributions. A simple technique but often placed on the back burner in the daily chaos of a manager’s life, but with practice like any skill, it can become a daily routine for managers and provide an anchoring effect for your employees.
Performance reviews will continue to be a difficult subject for employees and managers alike. New review systems will be introduced every few years and will be marketed at the newest and most effective method, but one thing will never change, effective and frequently one on one communication. When a manager shares how employees behaviors impact the organization. It is in that “impact” communication where an employee will see they are special, unique and a contributing member of the organization.
Did you have a good manager communication story to share or a devastating annual review meeting?