Thursday 28 July 2016

The missing link to Employer Branding

Aaradhya was a Sales manager in a very large manufacturing organization for the past 3 years. She was happy with her job and was not looking out actively for a change till she got an opportunity from one of the ‘Great Places to Work’ organizations in the FMCG industry. She was all excited as the recruitment consultant discussed the opportunity with her and spent the whole weekend preparing for her interview. Finally the day of her first interview arrived. The interview was scheduled for 10AM and she planned to return to work by 2PM. However to her surprise, the process did not begin before 1PM, as the hiring manager was attending an important call. She ignored the delay but was worrying about making it in time to her office. The interview went well and she got through to the next round. 

More than a month passed and she did not hear anything either from the consultant or the internal HR. She contacted the consultant and learnt that he had not heard anything from the HR on the next steps. Naturally, she felt hurt and angry but still hoped for some positive news. She entertained her nervous energy by surfing randomly on the internet about the organization when she landed on a companies’ reviews site which contained a database of employees’/ interviewing candidates’ reviews about their organization. As she moved on to the reviews from the interviewing candidates she was aghast to learn about the experiences of the candidates. Majority of candidates who were not selected reported a very negative experience. There was a case when the candidate was informed about getting selected but later he never heard back again from the organization. As she read more and more she turned increasingly negative towards the organization. 
A lot of organizations fail to realize this missing link to employer branding. How amazing it would be if organizations not only try to impress their employees but also the interviewing candidates with their professional behaviour and sound processes. 
A lot of organizations today have carved out a Strategic HR Advisor role responsible for working on transformation projects, process improvements and change management. Such role holders or any HR Process expert could redesign their selection process to cater to this need. 
Roadmap for creating a good candidate experience 
Assess the Current State: Identify stakeholders for process redesign. This would involve few members from the Talent Acquisition team and few hiring managers / managers responsible for conducting interviews. This could also involve someone from the HRIS team. Define the role of each stakeholder. RACI framework usually helps in this. Clarify the purpose and expectations to all the stakeholders and map the current interviewing process along with the stakeholders. Identify disconnects in the current process and possible reasons behind them which could be leading to a poor candidate experience. This is an important step and could throw light on key issues such as lack of preparation of interviewers before conducting interviews, failure on part of Talent Acquisition team to keep the candidate updated with next steps or to share the bad news, lack of an automated process to keep the candidate informed. Prioritize the key disconnects and identify solution for each. While the key aim is to improve candidate experience, one must identify the extent of redesign required in the selection process, just in case there are some more sub-process improvements which could be looked at simultaneously. 
Benchmark best practices: The Strategic HR Advisor or the Process expert should also benchmark with the market on best practices for creating a good candidate experience. This should be done before conducting the workshop with stakeholders. Taking cue from appreciative inquiry, the Process expert could also discuss further possibilities of improving candidate experience with the stakeholders.
Redesign the process: Based on the impact, available resources and other constraints identify the key changes in the existing process and document the new process. Creating a guideline checklist could also help. Do a quick validation with key stakeholders and communicate the new process to all key stakeholders.
Monitor effectiveness: Feedback from candidates who accept the offer on the interviewing experience, Glassdoor reviews could be used as an indicator to gauge the effectiveness of the process. Take necessary steps based on the feedback received. 

The article was originally published in People Matters .

Tuesday 5 July 2016

Future of Performance Management system

Performance Management System has undergone a lot of changes in the recent past to effectively translate effort to performance. The old ways of assessing performance have proven to be costly and ineffective. Bell curve alias relative comparison has been observed to be time consuming and often detrimental to performance. Organizations such as Adobe, Accenture, Microsoft and Delloite have adopted new ways of assessing to enhance individual and organizational performance.

Recent Changes

Key modifications in the performance management system include
-Goal setting no longer being an annual exercise but goals being reviewed quarterly / periodically.

-More frequent meetings between managers and employees for setting expectations clearly, sharing feedback and coaching on developmental goals. At least end of the project or quarterly feedback is recommended though the meetings could be more frequent than this.

-Rating team members on managers’ own future actions with respect to the team members is also practiced by few organizations. This solves the problem of idiosyncratic rater affect with managers 
rating employees on their own feelings / intentions rather than rating employees’ skills inconsistently.

-Rating employees on absolute performance rather than using bell curve.

Results so far

Though the results are awaited largely, few organizations have already started reporting the benefits they are experiencing. Adobe has reported a drop in voluntary attrition rate by 30% and an increase in involuntary attrition rate by 50%.1 In-order to facilitate more frequent feedback and development conversations, Adobe has introduced a system namely “Check-in” as per which managers should have at-least quarterly discussions with their team members. More frequent communication has honed the leadership and communication skills of managers. In-fact, 78% of employees perceived their managers to be open to feedback from them. Adobe has also witnessed promotion of a culture of ownership where employees want to participate in the success story of the organization. 

GE has discovered that the new performance management system has promoted trust between managers and employees – a key characteristic of high performing teams. The new system involves a mobile app called as PD@GE to define near term goals. Summaries of frequent conversations, named “touchpoints” can be captured in the app. GE has also witnessed better results by the use of the new system in the pilot project they have run. 

Encouraged by organizations such as Adobe and GE, Deloitte has also revamped its performance management system to clearly see, recognise and fuel performance. One of the most important actions taken by Deloitte is to request its managers to evaluate their future intentions with team members rather than rating them on their skills. The new feedback structure includes questions such as “Given what I know of this person’s performance, I would always want him or her on my team”. 2 This enables managers to take judgement solely on their available knowledge of the team member. While results are still awaited, Deloitte is working towards creating not just a simple but also a rich view of employees’ performance to increase the transparency of the system. 

As per a survey conducted by CEB 43% of organizations are either planning to introduce or open to consideration of new performance management system (n = 296) across the globe while the vast majority of 51% organizations have no plans to do so. Organizations which are planning to introduce are awaiting results from their pilot study while other organizations are awaiting results from organizations which have already implemented the changes.

Way Forward

With greater focus on continuous feedback & development and absolute performance, we are moving towards a more progressive way of assessing performance. In this changing scenario few practices have become more important and need to be relooked / redesigned for successful implementation of the new approach. These include:

Honing feedback giving skills of managers - This has become more important than ever since this is the cornerstone of a culture of continuous feedback.  The feedback needs to be constructive and future oriented else employees will feel burdened with overdose of feedback. Organizations not only need to provide periodic behavioral training to their managers but also assess them on how they are faring on this skill. Organizations need to provide individual guidance to managers in case they are struggling to be positive in their approach. Leaders need to take initiative and set right examples for others to follow.

Facilitating real time feedbackThe more data points there are on the performance of employees the lesser the subjectivity in assessing the performance. Organizations should use mobile friendly tools which facilitate providing continuous multi-rater real time feedback to employees. 360 degree feedback helps employees understand how they are perceived in the organization. Organizations should empower employees to initiate feedback. This will build a culture of ownership amongst employees.

The tool should not just provide data but also insights on development areas and track progress on them. Use of Big Data could narrow the gap between an organization’s top and bottom performers by analyzing their daily activities, finding patterns and highlighting the difference in their approach. This will help managers to have more effective development conversation with employees. This will also enable HR to track the quality and frequency of conversations between manager and employees.

Continuous recognitionContinuous feedback also calls for continuous recognition. It has been researched that employees are best motivated when they receive immediate rewards / recognition for their achievements. Coupling continuous feedback with year-end rewards / recognition is not a very effective way of motivating employees. Thus organizations need to redesign their recognition program to support the new performance management system.

This article has also been published in People Matters.