Calibrating Performance Appraisals

Calibration, according to Webster's Dictionary, is a set of graduations to indicate values or positions. In the realm of performance management, calibration can be important to getting performance appraisals as accurate as possible by introducing graduated review of the performance appraisal to help ensure it is as accurate as possible.

Because of inherent individualized bias that we all tend to have when it comes to how we perceive the behavior and performance of those who work for us, having a process in place where others are allowed to review the ratings, comments, goals and development plans for employees will generally yield better performance appraisals. Yes, there are new biases introduced into this process, but by inserting multiple people into the performance review process, there is opportunity for new perspectives and for alternative views to help create an appraisal that is reflective of the employee's performance.

The process of having other individuals or groups review appraisals is the basis for performance management calibration. In a recent SHRM study, fifty-four percent of HR professionals who responded said their organizations conduct some form of calibration and 35 percent said ratings were changed as a result of the calibration process.

With more than one-third of the appraisals being changed in some manner, it is likely that the quality of performance appraisals is enhanced on an overall basis. That is a significant quality assurance process that is lacking in many organizations.

Some calibration processes involve a simple escalation from the manager to his or her manager for review of the appraisal. Others are more stout in that they involve a group that is responsible for looking appraisals over and working closely with the manager in refining appraisals.

It's important that the process be kept agile and to not involve too many people. By doing so, you can help avoid paralysis by analysis. A performance management calibration process is intended to be a quality assurance measure and not a means by which criticism is levied against the manager.

Calibration generally involves other managers, supervisors or team leads who have a fair amount of knowledge about the employee in question. The preference is that they be in a position to provide input based on some level of first-hand experience working with the employee.

There are some organizations, however, that will place an individual with little or no knowledge of the employee's work or workplace behavior into the group reviews. The thinking here is that that individual can ask appropriate questions and take an unbiased view of how the appraisal is being conducted. What they can't offer though is any substantive input on the performance of the employee. But, if performance notes (journal entries) have been used extensively throughout any given appraisal period, that individual will have a fair amount of information to use as a basis for discussing the employee's appraisal.

Having some sort of calibration laid over the top of the performance management process is something most organizations should consider. From a morale perspective, employees will feel better knowing that more care has been taken to complete their appraisals.

Reviewsnap Launches New Brand and Website!

Reviewsnap, the leading cloud-based performance management software solution, today announced the launch of its bold new brand.

A key component of Reviewsnap’s new image is its new brand mantra, “All together now.”

“Reviewsnap’s performance management system is ideal for companies that want to get everyone on the same page,” said Dave Arringdale, Reviewsnap president. “That mission is reflected in our new brand mantra. We are here to truly help, not just to provide a service.”

“At Reviewsnap, we believe performance management software needn’t be overly complex or difficult to use. The simple and intuitive layout we’ve designed in our new website reflects our belief that functional simplicity creates a very positive experience for our clients,” Arringdale said. The bold design elements in the company’s new website and logo similarly support Reviewsnap’s image as a market leader for performance management software solutions.

“What hasn’t changed at Reviewsnap is its deep commitment to excellence in understanding and serving clients at the highest level through genuine customer service and support,” Arringdale said.

As part of its heritage, Reviewsnap aims to build a true and trusting partnership with every client. “At its origins, the Reviewsnap system was developed based on feedback we solicited from the customers we would ultimately serve — human resource professionals, business consultants, managers and executives,” said Arringdale.

Reviewsnap used this unique insight to develop a complete, fully automated performance management system that offers user-friendly, reliable and affordable on-demand Software-as-a-Service (SaaS) solutions that help companies:

· Align goals for greater results
· Enhance communication and coaching
· Increase employee engagement
· Save time and money with improved efficiency

“Our customers run the gamut, from very small to very large companies,” Arringdale said. “They all look to us for high-quality, on-demand human resource and business services solutions. We know we have to provide the most versatile and robust performance management solutions possible — and we do that while keeping our prices affordable and our customer service top-notch.”

How Do You Spell Morale?

Employee morale is not something to be taken lightly. According to the Harvard Management Update, in roughly 85% of companies, employees' morale declines sharply after their first 6 months on the job and it continues to deteriorate for years afterward.

Getting employees motivated is a commonly heard theme in organizations. But the real problem appears to lie in stopping those same organizations from demotivating their employees. When morale declines as much as is suspected in so many organizations, there is something amiss in how the employees are being managed and interacted with.

Managers, supervisors, and executive management often unwittingly damage employee morale little by little by saying and doing things that rub employees the wrong way. Stopping that behavior is sometimes easier said than done. But it can be managed.

Here are some things that seem to impact morale positively:

- Create an environment that is fun and lively.
- Carefully evaluate your management style. Is it facilitating in nature or is it dictatorial or overly assertive and direct.
- Encourage employees to come forward with problems, suggestions and issues. Listen carefully and acknowledge their concerns. Follow up on them and communicate results of your findings back to them. Don't leave them hanging.
- Address compensation and benefits to make certain that you are competitive with the market.
- Be consistent in how you administer rules and policies.
- Be fair and reasonable.
- Set expectations for all employees about team work and working cooperatively. Let it be known that you expect employees to get along while on the job.
- Be clear in your expectations and follow up when they aren't met. Don't ignore low performers. If they can't become good employees, terminate them. Bad employees affect those around them.
- Don't allow double standards. What's good for one employee is good for all of them.
- Eliminate a punitive mentality. Don't make employees feel that they will be punished if they make mistakes.
- Encourage innovation and creativity.
- Show employees that you care about them.
- Communicate as much as possible to all employees. Keep them well informed about what's going on in the business. Provide quality feedback regularly.
- Look at the work environment. Is it light and airy or is it dark, dreary and counterproductive?
- Complete performance reviews on time and in a thorough and accurate manner.
- Keep promises and follow through.

These are all reasonable expectations and behaviors within a culture of high morale and high productivity. The impact on morale by doing these things consistently can be dramatic. Look around your organization and see how often these things are actually happening with a high degree of regularity. If they aren't, the culture isn't supporting or requiring them. It's time to start changing that culture.

The Manager-Employee Relationship

You have to wonder how managers who believe they can operate in a vacuum and treat their employees like second class citizens survive as long as they do in most organizations. Unfortunately there are a lot of managers who fit this description at least to some degree.

Employees who have a solid working relationship with their managers are usually much more engaged, have higher levels of overall job and cultural satisfaction, and meet or exceed goals consistently. Those who don't tend to struggle with remaining enthused about their job and the organization.

Good managers work to foster positive and strong relationships with their employees. What are some of the things they do to develop that type of relationship? Here are a few things that come to mind:

- They know when and how to assert themselves.
- They introduce some fun into the work environment.
- They care about their employees.
- They listen and actually hear what the employees are saying.
- They help employees become better employees.
- They recognize employees for big and little achievements.
- They go to bat for their employees.
- They give employees the tools they need to do their jobs.
- They are unselfish.
- They take pride in seeing their employees advance.
- They take an appropriate interest in the employee...they get to know them.
- They are realistic about what can reasonably be accomplished.
- They catch employees doing things well and praise when appropriate.

This list is not all-inclusive, but it gives you an idea how managers develop excellent relationships with their employees. Keep these in mind at all times and work hard to build positive and strong relationships. The payoffs will be tremendous.

Rough Waters in an Economy Calls for More Attention on Performance

You bet we're dealing with some rough waters in the U.S. economy. Organizations of all sizes are being affected by it and the importance of how they deal with performance of employees becomes magnified in tough times.

But what do most organizations do? They cut staff and cut programs designed to enhance performance. One could argue that the single most important thing that can be done when times are difficult is to focus even more intensely on hiring the very best people and on incrementally improving the performance of all employees.

How well employees perform during good and bad times is absolutely critical to the success of the business. And one could argue that there should be the same high level of intensity and urgency surrounding performance management regardless of how well things are going financially. Who in their right mind would argue that? Certainly no argument here.

Because one result of a slowdown in business can be cutbacks in personnel, that means that those who are left have to be that much more productive and that much more focused on performing overall at even higher levels than ever. Let's face it, when times are good, 'fat, dumb and happy syndrome' can set in and the level of accountability for performance at the highest possible level may not be in place.

Our founder likes to say "I don't care how good things look today, you had better prepare every day for the time when things go to ----." Sure I could fill in that last word for you, but you get the gist. His point is that nearly every business will face tough times at some point. And if there isn't a strong performance management culture in place that includes, at a minimum, employee development, goal alignment, accountability, excellent coaching and feedback, structured and well developed formal reviews, and a focus on developing a high morale, high engagement culture, the tough times will be even tougher when they come around.

Unfortunately, good times tend to breed contentment and lethargy and the commitment to truly advancing the skills and performance of all employees on an ongoing basis can slip. Then when things get tough, some level of panic can set in and irrational or knee jerk decisions can get made. Some of those decisions may include cutbacks related to employee development and performance management. Because employees are the key to advancing the organization in good and bad times, cutting back necessary activities and programs generally only serves to exacerbate the problems posed by a bad economy and faltering revenues.

Spending money on performance management is an investment. HR professionals understand that incremental improvement of employee performance serves to strengthen the position of the business thereby positioning it to take advantage of favorable conditions and to withstand a bad economy or a slowdown in the industry.

Don't fall victim to discounting the importance of a concentrated and comprehensive plan for continually moving employee performance forward. Doing so could put your company in a very unenviable position.

Reduce Employee Turnover

The cost of excessive employee turnover is extremely high. Below are some rough estimates that we use in assessing the cost of turning over one employee:

Annual Salary or Wages Turnover Cost
$20,000/$10/hour $7,000
$30,000/$15/hour $10,500
$40,000/$20/hour $14,000
$50,000/$25/hour $17,000
$60,000/$30/hour $20,000

Suppose a business has 50 employees. And assume that employee turnover is running in the 20% range annually. This means that one of every five employees is turning over annually for a total of ten employees. And let's use $30,000 as the average annual salary/wage. In this example, the company will incur $105,000 of costs associated with employee turnover.
What happens if the turnover is reduced from 20% to 10% annually? In this example, there is a $52,500 savings that will drop straight through to the bottom line. This is a significant amount of money that can be used in productive ways to grow and enhance the business.

Turnover costs include, but are not limited to; hiring expenses, training expenses, productivity losses and internal resources applied to dealing with the termination and hiring process. There are also soft costs associated with excessive employee turnover. Soft costs have more to do with the impact of a revolving door on other employees. Other employees often have to pick up the additional work load until a new employee is hired and trained. This can lead to morale problems.

Keep in mind that we are talking about excessive turnover. There can be times when some turnover is positive. Cleansing the organization of problem employees is usually a positive and can have a significant positive impact on morale and productivity.