Compensation & Benefits Library™ gives you accurate answers and practical guidance to help you design, analyze, compare, administer, and communicate compensation and benefits...
By Michael Baer
Almost no one in the audience attending the opening session of WorldatWork Total Rewards 2014 Conference in Grapevine, Texas, raised a hand when asked by a panelist if they were satisfied with their performance-ratings system. Such systems can turn into “institutionalized alienation” of major parts of the workforce, said Brit Wittman, director of executive compensation at Intel Corp.
Participants in these systems find the process negative and come away with a feeling that the “process is happening to me,” Wittman said. In response, a trend has emerged that does away with ratings systems and instead establishes a system that make the process less negative, he said.
Part of the problem with some of these performance-rating systems is that the worker expects to see certain boxes checked and the rating of “meeting requirements” becomes a major disappointment, said Anne Ruddy, president and chief executive officer of WorldatWork who also participated in the opening session panel. Employers need to think about the current value the person is adding, Ruddy said.
The question then turns to asking how can performance management be done right? The annual review process in general “seems so unnecessary,” said panelist Mike Davis, executive vice president of human resources at General Mills Inc. Wise also said he sees movement away from formal rating of performance. “In a perfect world, we would talk about performance all the time,” he said. The best feedback on performance is “fairly immediate and fairly actionable,” he said.
Nathalie Parent, global voice president of human resources at Hybris, an SAP company, said her organization already has stopped the formal rating process. The setting expectations process creates a report card atmosphere and can limit innovation, especially in a quickly moving business environment where the need to change priorities to fit business needs is necessary, she said.
The panel also discussed employee satisfaction and motivation, engagement, the development and recruitment of talent and the costs and the complexity of administering the new health-care requirements as well as other benefits.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)