Driving Employee Engagement Through Performance Reviews Delivering Performance

Review Performance 25% © 2012 The Corporate Executive Board Company. All Rights Reserved. Retention

Review: Continued © 2012 The Corporate Executive Board Company. All Rights Reserved. 3

Presentation Review q Use Effective Language q Encourage Employee Input q Communicate Performance and

Use Effective Language Common Pitfalls Uses Overly Negative Words Makes Generalizations Makes Value Judgments

Use Effective Language Do… Frame problems as development opportunities Be descriptive when giving examples

Use Effective Language – Summary Don’t… Do… Use overly negative words Frame problems as

Encourage Employee Input Common Pitfalls Avoid difficult questions Become defensive or apologetic Express dissatisfaction

Encourage Employee Input Do… Schedule plenty of time Be candid, thoughtful, professional Respond calmly

Encourage Employee Input – Summary Don’t… Do… Avoid addressing difficult questions Schedule plenty of

Communicate Performance and Pay Differentiation Common Pitfalls Discuss other employees’ ratings Use jargon Example:

Communicate Performance and Pay Differentiation Do… Inform the employee of where his/her pay places

Communicate Performance and Pay Differentiation – Summary Don’t… Reveal other employees’ pay or performance

Presentation Review Delivering Performance Review Feedback: Use effective language Encourage employee input Communicate differentiation

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Driving Employee Engagement Through Performance Reviews Delivering Performance Reviews

Use Effective Language Common Pitfalls Uses Overly Negative Words Makes Generalizations Makes Value Judgments © 2012 The Corporate Executive Board Company. All Rights Reserved. Example: “The main weakness I’d like I’d weaknessthat likeyou for you to focus on ison attention is attention to to your is is your lack of administrative details. You never submit neversubmit paperwork on time and did a really badmanaging jobbad managing the Bouchard account as a result. ” 5

Use Effective Language Do… Frame problems as development opportunities Be descriptive when giving examples Emphasize words of encouragement © 2012 The Corporate Executive Board Company. All Rights Reserved. 6

Use Effective Language – Summary Don’t… Do… Use overly negative words Frame problems as development opportunities Make generalizations Be descriptive Make value judgments Emphasize words of encouragement © 2012 The Corporate Executive Board Company. All Rights Reserved. 7

Encourage Employee Input Common Pitfalls Avoid difficult questions Become defensive or apologetic Express dissatisfaction with performance management systems/decisions © 2012 The Corporate Executive Board Company. All Rights Reserved. Example: Situation: Theemployeeisthinks asks angry a question they should I’m“I’m have not sorry sure gotten how a tois Response: if this answer across different rating as harsh” coming Response: “I want to with give Response: one Response: “You’re “I didn’t have the no idea this but had no ayou performance issue--attacking what therating, answer is. I Maybe choice given how ourtell system my ability as manager won’t someone in a. HR can you. ” works. ”your rating” change 9

Encourage Employee Input Do… Schedule plenty of time Be candid, thoughtful, professional Respond calmly to negative reactions Restate employee comments Own the feedback Follow-up if necessary © 2012 The Corporate Executive Board Company. All Rights Reserved. 10

Encourage Employee Input – Summary Don’t… Do… Avoid addressing difficult questions Schedule plenty of time Become defensive or apologetic Respond calmly to negative reactions Express dissatisfaction with performance management systems/decisions Own the feedback © 2012 The Corporate Executive Board Company. All Rights Reserved. 11

Communicate Performance and Pay Differentiation Common Pitfalls Discuss other employees’ ratings Use jargon Example: As athe reminder: I… know merit increasea is less than Overall, you received rating of 4 you were hoping for, component but — that’s the highest of everyone The profit-sharing of your team! ifon you can improve your variable pay is calculated presentation skills like Here’s that will impact your using how a graduated, firstwe dollar discussed, compensation… formula. you’ll get a bigger increase next time. ” Make promises © 2012 The Corporate Executive Board Company. All Rights Reserved. 13

Communicate Performance and Pay Differentiation Do… Inform the employee of where his/her pay places them in their pay range Ensure the employee understands the terms Explain the pay and performance decision processes Explain what types of behaviors are necessary to achieve different ratings (e. g. , meets, exceeds) © 2012 The Corporate Executive Board Company. All Rights Reserved. 14

Communicate Performance and Pay Differentiation – Summary Don’t… Reveal other employees’ pay or performance ratings Use complicated compensation or performance management jargon Promise that doing certain things will lead to different pay outcomes © 2012 The Corporate Executive Board Company. All Rights Reserved. Do… Inform the employee of where his/her pay places them in their pay range Ensure the employee understands the terms you use Explain pay and performance decision processes Explain what types of behaviors are necessary to achieve different ratings 15

Presentation Review Delivering Performance Review Feedback: Use effective language Encourage employee input Communicate differentiation Additional Resources § Manager Guide: 10 Keys to Improve Employee Performance through Formal Performance Reviews § Manager Guide: Improve Employee Performance by Managing Reactions to Formal Feedback © 2012 The Corporate Executive Board Company. All Rights Reserved. 16