What Gartner says about ‘Pay-for-Performance’
Excerpts from Gartner Report 227695
Many organizations find that their existing pay-for-performance process doesn’t work well. It doesn’t improve performance, and demotivates employees.
Many organizations do not believe they have a good pay-for-performance process. In fact, many find these programs do not increase performance.
Many employees find traditional performance reviews unfair and demotivating.
Many managers and executives are not good at providing employees with high-quality, consistent and timely performance feedback.
Social recognition programs and solutions can help improve employee motivation and performance, while decreasing reliance solely on manager and executive feedback.
Test a social recognition program alongside your existing pay-for performance process.
Quantify any improvement in performance from social recognition, compared with your existing pay-for-performance process.
Adjust your investments in social recognition and traditional pay for performance programs based on results.
Continue to adjust the balance between programs annually, as business needs change.
Organizations will start to change their emphasis from top-down-driven, pay-for-performance programs to more bottom-up feedback, recognition and rewards. HR and IT leaders need to create a road map to take the best advantage of this opportunity to improve business performance.
Most organizations have focused on automating existing documents and forms. Although some value has been delivered, in many respects, these solutions have just automated flaws that existed in paper-based approaches…Leading organizations will start to shift away from top-down, individually focused, pay for performance to more bottom-up feedback, recognition and rewards.
In addition, parts of traditional talent management activities will effectively become crowdsourced. For example, managers and executives will be able to see the frequency, type and magnitude of feedback for each individual employee. More importantly, senior executives can use this data to see if manager performance decisions align with what coworkers indicate through their actions.
Bersin and Associates Findings
Organizations which have intermediate or advanced talent management strategies, are experiencing tremendously greater business returns than those which are not:
• 17% lower voluntary turnover rates
• 41% lower turnover rates among high performers
• 26% higher median revenue per employee
• 28% less likely to have had a major layoff..
• 109% more capable of retaining high performers
• 87% more capable of “hiring the best people”
• 144% better at “planning for future talent needs.”
Source Bersin & Associates Talent Management Handbook.
Step 1: Encourage everyone to provide continuous feedback to each other (Qualitative comments combined with Flags and Badges when necessary).
Call to action : Sign up for Synergita’s Continuous Feedback and Social recognition module.
US$ 0.50 (50 cents) per user per month. Setup, Train and Roll out in one day.
Step 2 : Choose a few managers who volunteer time and effort for personalized talent development for their team members.
Call to action : Open Synergita’s Review plan module only to those interested managers.
US$ 1.0 per user per month. Setup, Training and Roll out in three days
Step 3: Bring your performance review templates more closer to your business and closer to your people.
Call to action : Sign up for Synergita’s template building tool.
Free for two HR Administrators per company.
Step 4: Roll out complete Synergita suite to all employees in the organization
Use the templates and methodologies already set up in Step 3.
US$ 2.0 per employee per month
For more information and guidance please register for a live one to one meeting with our experts.