Employee Rewards - Create a Culture of Achievement, Not Entitlement

Steer and Accelerate Workforce Performance

For many people, except for a paycheck, their work is purposeless. Ask people what they would do if they suddenly won the lottery. The first thing many would say is “Quit my job.” Everyone has their own reasons for wanting to be away from work. In many organizations, change is thwarted and talent is wasted. People go to work and feel little satisfaction. They cannot wait for the weekend where they can avoid the tension and boredom at work. They want to enjoy their life.

Today’s workforce is more diverse than ever. Multinational ethnic groups, young and old all mingle together in a diverse work place, and their interests and needs are just as diverse. Some want more free time while others want more overtime or career advancement. The traditional Total Rewards program is falling short in fulfilling the needs of this diverse workforce.

Total Rewards refers to the monetary and non-monetary rewards provided to employees in exchange for their time, talents, efforts and results. It is intended to attract, motivate and retain employees. Unfortunately much of what is considered the bedrock of total rewards is now seen as entitlements.
Part of this is because many total reward programs are entitlements, not rewards. Competitive pay, vacation, 401K, flex time, training, tuition reimbursement, healthcare and the list goes on. In many organizations, rewards are dished out not for stellar performance, but just for showing up. Well-intentioned managers delay reducing pay for poor performers. Ultimately this rewards mediocrity and punishes top performers. This socialization of rewards has driven up costs, and lowered our competitiveness.

Getting a reward before achievement has occurred is a gift. A reward is something you receive for achievement. You can attract a lot of people by giving things away. However, those with top talent want to be rewarded for their top performance. If mediocrity is rewarded with entitlements, then why work? Workers can just show up and collect their paycheck. If performance is rewarded, people will perform. As Bruce Pfau and Ira Koy say in “The Human Capital Edge,” pay for performance works because it is based in human nature. People do things that are in their best interest. They do not do things that are not in their best interest. As a result some companies have outsourced work to countries where labor costs are lower and the work ethic is higher. But it doesn’t have to be that way.

Create behavioral anchors for your rating scale

A simple exercise can increase the accuracy and fairness of the one-size-fits-all employee appraisal process. A pre-appraisal meeting is set up to review performance characteristics (behavior indicators) defining rating scale criteria. Through an open discussion, managers agree on consistent ways to interpret performance ratings.

Once relative consistency is achieved, each manager is asked to describe the behaviors they would associate with each rating on the rating scale. The facilitator should make sure everyone clearly understands the difference between an opinion and a behavior before proceeding with the exercise. After everyone is finished, the group compares their examples. Using consistent examples from the discussion, the rating scale can be defined using behavioral anchors to help managers calibrate their scoring on an employee appraisal template.

Managers and employees receiving above-average performance should be rewarded accordingly. Rewarding performance is the only way to sustain full employee engagement. However, managers rating staff members above average may be asked to provide measurable evidence justifying an above-average score. This simple exercise reduced above-average ratings in one financial organization from 62.2% to 22% in one performance cycle.

Performance Path® takes the employee appraisal format one step further, by linking a behavioral-anchored rating scale with stages of employee development that result in a “Human Factors” rating scale. The “Human Factors” rating scale enables managers to select the best practice coaching strategy that matches employee development, maximizing employee skill and initiative.

“Human Factors” appraisals improve communication between manager and employee, both during and after the appraisal period. Developmental planning and behavioral coaching are more likely to be successful when the manager and employee are rewarded for their efforts. The performance review shifts from focusing on the pay plan to achieving performance goals. Managers and employees begin thinking like owners. Over time a culture of achievement replaces the culture of entitlement.

Business Resources > Tips for Successful Employee Appraisals

Conducting employee appraisals is usually one of the least favorite tasks of most managers. It is easy to understand why. Traditional one-size-fits-all appraisals bear little resemblance to the actual job requirements. One-size-fits-all employee appraisal systems use broadly defined statements to define work responsibilities. And, the rating scale is more a measure of the manager’s opinion, versus measure of actual performance.

Examples:

Typical sample employee appraisal phrases:

Communication

To what degree an employee demonstrates the ability to interact in a clear and logical manner, using verbal and written communication skills.

Leadership

Demonstrates the ability to inspire others to achieve higher goals and business objectives.

A typical rating scale - 1. 2. 3. 4. 5.

1. Unacceptable
2. Needs Development
3. Meets Expectations
4. Exceeds Expectations
5. Walks On Water

The traditional appraisal rating scale actually increases appraisal bias. The result of traditional employee appraisal forms is more opinion poll than performance measure. Unfortunately, some organizations avoid reviewing performance all together. They resort to across-the-board raises that actually increase costs and tacitly reinforce mediocrity throughout the organization. Most managers do the best they can to make the traditional “finger in the wind” appraisal process relevant and fair.

Here are some tips to making traditional employee appraisal methods more relevant and accurate.

Effective “Human Factors" appraisal forms eliminate rating bias with job specific performance criteria coupled with a behaviorally anchored rating scale. This ensures pay and promotions are based on meritocracy.

Business Resources > Booming in the Millennium

To say the world is undergoing a huge economic restructuring might be an understatement. Shifting demographics are one of the key factors driving this change. The U.S. economy has grown at an annual rate of around 3.4% adjusted for inflation over the past 50 years (BLS). An important factor in achieving that pace of economic growth has been an increase of about 1.7% annually in the supply of workers.

The Baby Boomers who drove consumption for nearly four decades are now reaching retirement age. Boomers are leaving, taking decades of experience and intellectual property with them. As they do so, many are concerned with having enough money to support a comfortable lifestyle. The millennia workforce will need a 21st century management system, because it is not only younger but different by sex, race, and ethnicity. This workforce is motivated by a different world view. This more diverse workforce force will demand a variety of benefits, a flexible work schedule, clearly defined opportunities for growth and advancement and of course a competitive pay plan.

Now this brings us to an interesting question, What is the purpose of the pay plan? I personally agree with Robert Heneman, who says, “The ultimate goal of the pay plan is to align the goals and interests of the employees with the goals and interests of the organization. Sadly, as I have frequently observed, performance management systems and line of sight bonus schemes are a blunt stick at best. They are rigid structures based on short time results at best and “finger in the wind” opinion polls at worst. See my earlier blog, “Perfecting Performance Appraisal Tools" for more details.

Those in management will have to approach the system in a different way. It will have to be one that creates a culture of achievement, not entitlement. Such a system replaces blunt stick technology with managers tools ensuring employees know exactly what they need to do to excel by fully supporting the organizations goals and objectives.

This may sound like a dream; it is not. Read on.

21st century workforce management includes:

• Ensuring performance standards are clearly defined in each employee’s job description.
• Performance standards are measurable and prioritized according to their impact on Westar’s strategy, goals and objectives.
• From the first day on the job each employee knows exactly what they must do each day to drive success.
• Innovation targets are identified encouraging staff to stretch beyond current job requirements.
• Targets encourage employees to increase their skill certifications, initiate and complete money saving ideas or take on added responsibilities.
• Areas of personal conduct are provided to ensure professional standards are understood.

Appraisals provide management with accurate measurement of job-specific performance for each employee. They work best when equipped with a “Human Factors” rating scale enabling management to develop effective coaching strategies targeting specific skill and motivation affecting overall performance.

Coaching and development are a part of each manager’s role and responsibility. Many managers are unfamiliar with coaching techniques, as they have not received professional training. A structured coaching worksheet linked with the “Human Factors” rating scale will provide managers with a road map to developing successful coaching strategies for staff at all levels of performance.

Tracking and documentation are made easy with online employee logs and performance dashboards. Each manager has their own console representing their direct reports. The employee log allows managers to create personalized category folders to record individual achievement, discipline, training, vacation and sick leave among others.

Pay increases and rewards are earned. Managers maximize results and rein in costs by providing staff with high value (financial and nonfinancial) incentives. In essence, employees are rewarded for demonstrating exemplary performance, goal achievement, skill advancement or successfully implementing approved innovative ideas. Rewards interlock with daily work efforts and Westar’s key success factors enable managers to drive change at every level within the organization.

Performance dashboards provide managers with graphical information related to performance goals, key performance indicators or employee log entry by person, position, and department, or between international counterparts. Dashboards enable managers to review data graphics from each folder or combination of folders. Managers routinely measure, monitor, and analyze the effectiveness of the workforce as never before. With these tools, management drives strategy and contains costs -delivering sustainable value to customers and shareholders alike.

With a well-trained workforce and Performance Path® technology there is no need for forced compliance as each person recognizes the importance of his or her contribution. Individuals and colleagues work together with a sense of commitment and shared fate. Shareholder value is a measure of personal fulfillment as much as a financial result. In a corporate culture motivated by achievement, there is spontaneous innovation, constant cooperation, and you hear the laughter of people dreaming, achieving, and having fun.

Performance Management Systems & Software - Belt Tightening Inside YOUR Organization

The first or second largest expense in almost every organization is labor. Studies show that 60-75% of an organization’s overhead expenses are consumed by their people.
Organizations must:

• Assess the top line versus cost structure.
• Cut discretionary spending.

Now, imagine if your employees could be just 5% more productive every day. Obviously, this would have enormous positive impact on your bottom-line. So, the question of the day is: How can you improve your human capital?

• Ensure employee commitment during cost cutting by asking them how to minimize cost.
• Identify the day-to-today actions staff must perform to drive value.
• Attract and keep top talent by rewarding performance not putting in time.
• Create a value mindset by linking staff actions and incentives with business value drivers
• Ensure full engagement of employees by providing highly valued low cost incentives.
• Objectively differentiate those that add value and those that don’t.
• Reduce head count based on objective assessment of skill and motivation.
• Reward staff for measurably improving individual or organizational performance.
• Make managers and frontline supervisors reward employee merit.

Performance Path ® provides an easy, cost effective way to achieve belt tightening.

• Objectively separate those that add value and those that don’t
• Close the skill gap between highest and lowest performer.
• Pay-For-Performance, quantify management skill Level.
• Increase innovation and alignment, quantify leadership skill level.
• Pay For Performance, accurately measure employee skill level.
• Motivate or replace, accurately measure employee motivation level.
• Reduce costs with non-financial incentives that engage employees, and drive performance.

Performance Management Systems & Software - Economic Shift

In these turbulent economic times it is imperative to increase efficiency and retain the commitment and loyalty of our employees. Many organizations will cope with the current difficulties by reducing budgets, cutting prices and lowering head counts. While this may be momentarily prudent, more must be done to sustain long term success.

Performance Path ® is a unique and effective performance based program which drives leadership, identifies key performance, provides a results driven reward program - Incentive Cache ™ and a proven track record of improving productivity by creating a culture of achievement not entitlement.

Increase Performance While Containing Costs

Managers must understand the Business Drivers outside and within their company.

Outside Business Drivers

Over the next five years millions of baby boomers will retire. No doubt they will be spending less and possible looking for part time work. The demographics are changing around the world forcing dramatic changes to business models. Read Harry Dents “The Great Depression Ahead.”

A simple assessment of risk may include identifying the risk factors and rating them on their potential impact and likelihood of occurrence. Next, consider the possible scenarios and decide how you would structure your organization to effectively deal with them.

What are the products or services offered today?

What areas are most profitable areas now?

What will remain profitable in the future?

What will your company look like in five years?

Restructure to increase resilience and competitive advantage.

Online Performance Appraisals & Performance Management Work Sheet

Online Performance Appraisals

Managers can access current or past appraisals online. The appraisal format is completely customizable including:

The size of the rating scale, rating descriptions and point value assigned to each descriptions

Prioritizing appraisal items

KPI’s linked with the performance of work requirements

Weighting of different job requirements reflecting their business impact.

Different appraisal sections may have independent ratings and weighting capturing performance in areas such as conduct, innovation and value creation.

Each section may provide managers and employees with separate comment areas

Many people have the same job title but one job may be more difficult than another. A job difficulty rating scale can be added to the appraisal system allowing managers to preset a job difficulty rating provides a more equitable way to assess work performance for different individuals within the same job title. This rating automatically adjusting the final score up or down based on the pre set difficulty rating.

A “Score Board“ provides an easy view summary of weighting, rating and score for each section.

Alerts can be preset reminding managers in advance when an appraisal date is approaching.

Our Performance Management Work Sheet

Managers can set-up work related goal or coaching plans anytime throughout the year. All plans include;

Measurable goal statements.

Observable behaviors supporting goals.

Supportive actions managers provide ensuring goal achievement. As managers add new entries they are saved into a “Pick List” making it faster and easier to complete new plans.

Incentives may be selected from a preloaded list or added to the list further boosting motivation and improving results.

And finally multiple alert times may be scheduled establishing review dates and completions dates.

An alert system is available to remind managers and employees of important scheduled events.

Performance Management Software

Performance Path ® Web based performance software solutions.

Performance Path ® software is designed to provide an easy to use and highly adaptable ASP performance management system. It is web based. Access is available worldwide. It can be configured to accommodate your performance management design or equipped with our high performance work force system, Performance Path ® .

Customizable Performance Management Dashboards

Dashboards make it easy to measure, monitor and analyze performance in key result areas. Strategic alignment and goals are directly linked with day to day performance. Reports in multiple formats can display measurement of:

1. Key Performance Indicators (KPI) by person, position or department
2. Leadership Skill Level
3. Management Skills Level
4. Employee Skill Level
5. Motivation Level of each person, or an entire department
6. Innovation in progress and completed
7. Goals in process or completed
8. Skill Improvement trend analysis year over year
9. Conduct and compliance with critical protocols
10. Employee documentation by category and volume

An alert system reminds managers when it is time to review performance, schedule meetings or document employee performance.

Business Management Consulting, Training & Coaching

Performance Path ® recognizes innovation as essential to sustaining organizational leadership for our clients. Our business management consulting and training services are innovative in both approach and application.

Organizational Development (OD)

OD interventions result in innovative solutions, greater management commitment, and increased organizational effectiveness. Senior management teams identify, plan and implement the strategies, structure and systems that build profitability and reduce costs.

Strategic Mapping Vision to Action Workshop

It provides executive teams with the technology to quickly execution and anticipates bottlenecks and blunders.

Executive Team Building

Process consulting involves a professional facilitator leading group discussions and using analytical methods or formal frameworks to identify problems or suggest more effective or efficient ways of performing business tasks. Process consultants usually work with senior management or project teams to development future strategies, identify best practices or implement plans that result in the achievement of designated objectives.

Management Development Series (MDS)

The MDS is a series of core training courses providing a tool box to increase the capability of managers and employees. It is a training curriculum which identifies the most important and urgent training needs for the organization.

Job Link™ Training

Transferring classroom attendance to work competencies often requires additional training and support from supervisors. Unlike generic soft skill training such as customer service, leadership or communication, Job Link™ training is directly linked to specific job needs; identifying and creating a direct link between skill training and strategic work needs.

Incentive Cache Performance Management Tool - Motivates your employees

It’s not just managers recognizing employee achievements; it is people recognizing people for very specific contributions tied to results.

Remember; “If you don’t know what motivates your people, you could be feeding bananas to your tigers.” says Rod Waddell, President of Performance Path ®. Different things motivate different people. You get what you reward. Motivational profiling allows managers to quickly and effectively identify individual motivational hot buttons for each employee. Employees work hardest when their work effort connects to their personal lifestyle wants and needs. Linking strategic objectives and goals with individual work efforts and personalized incentives creates commitment and loyalty.
An incentive survey identifies the types of incentives that reward staff excellence, performance, innovative ideas, and taking on new job responsibilities. Linking incentives with business objectives accelerates business success. Managers learn to use measurable goals and recognition to expand performance without adding cost.

Which of these would you work hard to get? Which ones attract top talent, reinforce extra effort and innovative thinking? And how frequently can your organization afford to give them?

Extra Vacation Time Flex Time Designated Parking Space Advanced Training Special Assignments Of Interest Recommendation Letter Public Praise Achievement Awards Sincere Appreciation Designated Expert Status

Extended Insurance Benefits Matching 401k Contributions Theater Tickets Expanded Health Plan Company Coffee Mug Monogram Shirt Airline Ticket Voucher Luxury Pen Set Crystal Clock Pay Raise

Non-financial incentives lower cost and increase management’s control over individual performance. Remember: you get what you reward.

Incentive Cache™ gets managers and employees to THINK LIKE OWNERS.

Are you ready to Motivate, Recognize, Appreciate, Reward andRetain your employees?

Contact Performance Path ® today to schedule a FREE consultation.

Incentive Cache - Motivate, Recognize, Appreciate, Reward and Retain your employees

Motivate, Recognize, Appreciate, Reward and Retain your employees by uncovering their unique interests and needs with the Incentive Cache™ by Performance Path.

Highly effective leaders take the time to understand what motivates each and every one of their team members.

The Incentive Cache™ provides managers with a motivational profile listing the top motivators for each employee. Linking individual desire and lifestyle needs with mission, vision and strategy creates a passion for excellence. This enables manager to:

• Attract TOP Talent
• Expand Ownership
• Drive Innovation at ALL Levels
• Lower Relative Cost
• Create A Culture of Achievement, NOT Entitlements

Incentive Cache™ is a tool designed to identify financial and non-financial incentives based on each individual’s wants and needs. By linking performance-based incentives with the tasks staff and managers perform daily creates purpose and drives success. Aligning incentives with daily tasks, goals and strategy focuses all efforts on the key performance areas driving your success. Imagine having a gigantic steering wheel with which you can shift every employee's attention and work effort onto new strategies, improving productivity or reducing costs quickly and easily.

Imagine receiving incentives that are valuable to you as an individual; incentives based on your preferences, your interests, your lifestyle and on your performance. You would have nothing to lose and everything to gain.

A Better Way to Increase Performance & Productivity

Effective performance management systems fully engage employees at all levels. (Removed Content) Increase financial results are produced by linking daily activities with management best practices and valued incentives. Performance Path ® shifts employee focus from pay to skill and initiative. Aligning and realigning incentives with goals and strategic objectives creates agility and competitive advantage. The relative cost of compensation and benefits decline, The net result – a bigger bang for your human capital bucks.

Areas of Customization

Performance Path ® is totally customizable. It is easily adapted in whole or in part to your specific needs.

• Performance Based Job Descriptions
• Job Specific Appraisals
• Incentive Profiler
• Defining Management Accountabilities
• Custom Reports
• Coaching Development Work Sheets
• Team Matrix
• Performance Dash Boards and Score Cards

Is your company looking for a Complete Performance Management System?  Contact Performance Path today to find our what we can do for YOUR business.

Performance Path Model - Next Generation Performance Management System

Performance Path ® is a high performance work System. The Model includes Performance Based Job Description, Performance Appraisal, Incentive Cache and Performance Leadership. In addition, optional application supporting goal setting coaching, employee documentation, performance dashboards and more.

• Next Generation Performance Management System
• Get managers and staff to think like owners
• Interlocking information technology with organizational psychology
• Creates a culture of achievements not entitlements
• Increase performance while lowering relative cost
• Get the potential your strategy promises

Performance Based Job Description, Tell Them How to Excel

They Provide:

• Measurable, job specific work requirements, prioritized and linked with strategy and goals.
• Conduct areas defined in measurable terms.
• Targeted areas of innovation and excellence beyond work requirements.
• Defines qualifications and career path opportunities.

Performance Appraisal, Rating “Human Factors” Performance

• Objective & legally defensible.
• Weight performance according to strategic impact and difficulty of job.
• Link individual performance with Key Performance Indicators (KPI's).
• Measures Leadership Skill Level, Employee Skill Level, Individual Motivation Level and more.
• Managers and employees are discussing what is happening on the job instead of what the terms mean in the appraisal.

The Incentive Cache

• Identify staff motivational "hot buttons".
• Fully engage employee brains and backbone with non-financial performance incentives.
• Use performance based incentives to steer employee efforts and drive strategy like you steer your car.
• Attract and keep top talent with personalized rewards they can't get anywhere else.

Performance Leadership, Get Staff to Think Like Owners

• Measure, monitor and analyze if managers are creating value or destroying it.
• Decrease the time it takes for staff to take action.
• Increase the performance of activities that drive strategy and goals.
• Increase the number of employees that go above and beyond work requirements.
• Learn how to drive mission and strategy with employee passion.

Performance Management System

Measure Performance, Contain Costs, Drive Innovation

Performance Path ® Value Proposition

Performance Path ® is a next generation complete performance management system. By linking information technology with organizational psychology Performance Path provides accurate measures of frontline performance, new methods to contain costs in compensation and drive innovation. For the first time managers will have the tools they need to align competing priorities and accountability, reduce relative cost, melt resistance to change and steer the workforce like a captain steers a ship putting YOU in charge of your future!

Performance Path® allows your business to;

1. Drive Strategic Change
2. Reduce Relative Costs
3. Hardwire Accountability
4. Target Increases in Innovation and Value Creation
5. Increase Overall Motivation and Employee Performance
6. Next Generation Appraisal System

In these poor economic conditions senior managers recognize the need for tighter cash flow controls and visibility into current results. The spreadsheet process is increasingly adequate. Demands are mounting from shareholders and board members. As always, operation units continue to resist change; even at a time when change is accelerating in many industries.

Performance Path ® software is web based software readily accessible anywhere in the world. Activate your current performance management system or design a new system to meet your current and future needs.

Performance Path ® effects change increasing performance and productivity by linking strategy and goals with employee passion. Performance Path ® creates a culture of achievement, not entitlement. The end result:

• Reduced compensation costs while rewarding employee commitment and loyalty.
• A Strategic steering wheel linking effort and innovation with results.
• Clear line-of-sight between strategy and employee behaviors.
• Execute rapid response to changing market forces.
• Increased employee compliance with policies, procedures, job requirements.

History - Performance Path

Business performance management (BPM) has made great strides over the last decade. Certainly balanced score cards and dashboards help managers plan, monitor and analyze results. Executives implement performance management to improve execution of strategy, increase efficiency and become more agile competitors.

The oversight … human energy. Human energy is what drives progress. All BPM systems use goal setting and Key performance indicators to measure, monitor and analyze performance. These are lag measures. Relaying on these factors alone is like driving your car by looking in the rear view mirror.

Managers and employees need the information and motivation to drive success. Front line decisions (Lead Measures) drive bottom line results. Goals and objectives (Lag Measures) measure results. Employee motivation affects everything – customer relations, costly errors, and delayed responses.

Performance Path ® was developed over a number of years by psychologist and human behavior analyst Rod Waddell. In an effort to ‘find a better way’ to manage employees and bottom line results, he developed Performance Path ® and Incentive Cache™.