True or false: Annual performance reviews are a fair evaluation system of an employee’s performance throughout the entire year and generally looked forward to as an enjoyable and valuable use of time.
Some of the biggest complaints in corporate culture are employee performance reviews and appraisals. There is a tremendous amount of time that goes into annual employee reviews, and yet more than half of executives (58%) believe that their current performance management approach drives neither employee engagement nor higher performance. Typically, companies use a rigid system of ratings and subjective evaluation criteria that is often not interpreted or acted on effectively due to lack of management training.
Realizing that there is more to success than just job performance, we have completely reimagined the employee review process at my company through something we are calling The Human Project. It blends motivations that are both extrinsic and intrinsic. Extrinsic motivation is performing for a reward and intrinsic motivation is doing things because they matter. Employees develop a report or creative presentation (such as a video) that is a self-assessment of their successes in the 3 Ps: performance, passion and purpose. The evaluation of all three of these areas gives us a holistic view and makes up the employee’s human rating, giving them a pathway to become the best versions of themselves.
So, how can you hold your employees to achieving ridiculously high performance?
There is some value in the traditional review model where there need to be certain measurement criteria that are related to the performance of tasks and work product. This is one of the most standard practices within an organization. But where many organizations go wrong is in providing clarity as to the goals and key metrics that will be measured for success.
The Human Project requires employees to first set goals in all three areas: performance (which is the key performance indicator (KPI) related to their specific role), passion (a goal around something they are passionate about, whether business or personal) and purpose (something that goes beyond just themselves). Performance is given the most weight as it’s impossible to deny the importance of meeting workplace goals and KPIs. During the performance review, employees must present a report on progress to a panel of three leaders who will judge the presentation to determine if the employee has mastered all the KPIs set for the year. Not only do all parties, including the employee, have a clear understanding of what these goals are, but the employee must also achieve more than just work success. This raises the bar beyond just a traditional review model and pushes employees to have a high sense of self-awareness.
It is crucial to establish and track KPIs that are unique to each employee and their responsibilities, and for all parties involved to have a clear understanding of what those are. Achievement goals for employees need to be SMART: specific, measurable, achievable, relevant and timely -- regardless of whether they are performance, passion or purpose related. Gone are the days when employees can say they want to “be better” or “do more” than last year.
Grow passion.
Just because someone is a dedicated worker doesn’t mean that makes up the sum total of their value as an employee. We get so focused on the daily grind that it’s easy to forget that there is life outside the four walls of the office. At my company, we encourage people to hone a skill, learn a new language, get involved with their kids’ sports team, have fun doing something that they love or become a better player on one of our sports teams. This growth in one’s personal life translates to growth at work, as happy employees work harder and are less likely to burn out.
This supports one of our underlying principles for strong brands -- happy employees make for a better business. Employees shouldn’t be entirely focused on their jobs; they need to have breaks, be inspired and have an outlet to express their creativity and passion.
Find a purpose.
In today’s business world, organizations do well by doing good and individuals have a social responsibility to pay it forward to the next generation and broader community. We go beyond the company’s bottom line to make a positive impact on our planet. This can take many forms, so we empower our employees to choose something that is meaningful for them to contribute to society.
Doing good can benefit our community and our business by giving employees outlets to feel good about what they are doing, helping them feel part of something larger than themselves and putting daily problems into perspective.
Focus on people, not resources.
The Human Project empowers employees to take control of their careers, personal development and happiness, helping them to become the best person they want to be. The review process is just the start of our coaching and training program, which looks to grow employees professionally, as well as nurture their overall well-being as people.
While every company culture is different, room to improve in the performance evaluation process most likely exists. Each business needs to find the review and evaluation process that works best for them. We have developed a system that works for us, and other organizations can customize the principles outlined here to attain the same success. One of the biggest benefits of this new way of thinking is that it focuses on people -- not just the numbers, goals or results.
Your company has likely set your performance metrics, but what are your passion and your purpose?
