Case Study

In one company, a short company-wide survey was undertaken to understand the effectiveness of the company values, in particular how they were used as part of the appraisal process. Some very interesting findings surfaced.

One question asked if they were a manager or not. It was found that managers were twice as likely to believe that they held regular 121s with their direct reports compared to the employees’ response to that very same question. The response rate was sufficiently high so there was sufficient confidence in the data.

Following an in-depth review of the qualitative feedback and also some additional short face-to-face interviews, it was clear that there were different expectations and understandings as to what constitutes a 121 from a manager perspective and an employee perspective.

Following the survey and analysis, an action plan was put in place. This included an update to the Performance Management Handbook, manager training and regular discussions at team meetings about the importance of regular 121s with employees being empowered to ask for more regular 121s and more detailed feedback.

The topic of performance often crops up when someone is moving towards a low performer.  However, it’s as important (and it could be argued that it is more important) to support the high performers, especially when the recruitment market is so tight.

Whilst there can be the quick and easy “out-of-the-box” appraisal systems, you need to ensure the consistency with the company culture and ethos.  For example, is it purely the manager assessing the employee?  Does it include peer feedback?  How does it relate to company values and purpose?

Wherever possible, it’s best to find ways to incorporate feedback into the day-to-day business, and make the process two-way and keep it simple.  Clear expectations and regular feedback is key to an effective performance management system.  It’s the regular conversations that count.

New starts also need clear expectations set for them in their first few weeks.  Depending on the standard length of your company’s probationary period, it’s important to effectively use this time to assess performance in relation to what the employee is achieving and also how they are achieving it.