Performance Evaluation Process 2014 Goals of the Evaluation

Performance Evaluation Process 2014

Goals of the Evaluation Process • To provide clear feedback to each associate on his or her performance • To help each associate reach his or her maximum potential with Orvis • To provide another opportunity for communication between a manager and their associate(s) To help each associate succeed, professionally and personally

Can’t We Just Hire Who We Need or the Skill Sets We Need? • Average Cost Per Hire, US $3, 375* • Average HR Cost/FTE, US $1, 610** • Our culture supports the belief that every associate wants to do a good job. • Our associates are a significant investment—we strive to have a return on that investment. • *-Pricewaterhouse. Coopers LLC, 2010 • **-Pricewaterhouse. Coopers LLC, 2012

Our Current Process • Now includes two distinct parts – Annual reviews – in February of each year – Mid-year check-in in August of each year • Takes a significant investment of manager & associate time • Causes angst to all involved

What We Have Learned • The investment by manager and associates can and does produce positive returns. • The mid-year review process is more comfortable for managers and associates, although less far reaching. • We still lack clarity in many of the reviews that are written.

What We Have Learned-2 • We continue to have situations where a manager has made a decision re: associates performance or potential. . and the associate does not know. • Personal development goals often lack the ‘personal’ piece—i. e. , how can this activity help this person develop skills/grow, rather than how it can help the business succeed.

2014 Overview • Basic format remains • All Core Values & Pathways to Excellence added for assessment—slight change in the question to be answered • More redundant questions combined • Continues to be a coaching-based approach • Overall assessment added at the conclusion—this associate, this job • Personalize the personal development goal

Energize/Personalize the Personal Development Goal • Purpose is to have every associate improve their skill set in some way by learning something new OR accomplishing something that will add value beyond the associate's normal duties. • Choose something challenging, yet attainable. S T R E T C H.

Energize/Personalize the Personal Development Goal-2 • A SMART goal is: – Specific – Measurable – Attainable – Realistic – Time-bound

Actual Personal Development Goals • Learn Ipad/tablet operations by June 1 st. • Read “This Book Title” and be prepared to discuss each chapter at our monthly district calls. • Read and review the MIT modules on interviewing by June 30 th. • Take course in managing multiple generations of employees by August 31 at a cost not to exceed $500.

Actual Personal Development Goals 2 • Identify 2 Excel concepts/skill you want to learn and 2 associates who you believe have those skills. We will then arrange training of at least an hour for each skill, no later than June 30. • Choose an outside board you would like to serve on and pursue membership there to continue to develop you leadership skills by 6/1. • Reinvigorate your Bell learning by………

With two others. . . • Come up with 2 new, interesting, associate -centric personal development goals

The Orvis Compensation Philosophy • Base-the associate’s on-going value to Orvis. • Bonus (variable pay)-compensation that changes due to company or short-term individual performance.

Top Tips for Effective Evaluations • Seek all relevant feedback for this associate. Supervisor Observations Coworker Perceptions Associate Self-Appraisal Complete View of Performance Subordinate Perceptions Measurable Work Product Customer or Vendor Perceptions

Top Tips for Effective Evaluations. Preparation • Start with a blank sheet of paper. • Write the evaluation to the associate. • Have the Culture Document at hand use language from it. • Seek last year’s review if you need it. • Write, finish…. . and wait.

Top Tips for Effective Evaluations-Delivery • Read the review as if you were receiving it to see if it is clear. • Send discussion topics with a meeting request. • Give the associate a draft of the written review 424 hours ahead of the meeting. • Memorize this phrase: “As your manager, my number one job is to help you succeed. I have an obligation to you and to Orvis to let you know of anything that limits your success. ”

Top Tips for Effective Evaluations— Follow Up • Touch base with the associate after the review. • Address any new issues in a separate document. • Finish the process—paperwork to HR. • Advise your manager of any issues/surprises.

Performance Review Schedule January 13 Self-evaluation forms distributed January 24 Self-evaluation forms due February 7 Managers’ evaluation forms completed and sent to department heads for review and feedback February 21 In-person associate reviews complete February 21 Managers meet with Department Heads to review raises February 24 Final performance reviews forwarded to HR February 26 Manager and associate meet to discuss compensation

First Question?