Potential Global Implications

Performance Management

Standard

What is a Standard?

"A standard is a document, established by consensus, that provides rules, guidelines or characteristics for activities or their results”(As defined in ISO/IEC Guide 2:2004).

Standards are voluntary for organizations. • Reflect minimum standards of effectiveness • Provides adaptability to reflect organization’s

HR’s sophistication and development

Standards Development can be: • Country specific—ANSI; or Global---ISO

ISO/Technical Committee (TC) 260 for Human Resource Management

An international standard for HR terminology (convened by

the Netherlands)

A technical specification for Cost per Hire (convened by the U.S. and initially based on the American National Standard for Cost per Hire)

An international standard for Human Governance (convened by France)

An international standard for Workforce Planning (convened by Australia)

SHRM’s Role in

Standards Development

To lead the profession by sponsoring the

development of HR standards nationally through the American National Standards Institute (ANSI) process.

To meet the needs of the market by engaging HR

thought leaders to define the threshold of effective practices of the profession.

To promote the adoption and implementation of

standards

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Status of US Standards Development

Staffing & Workforce Planning Taskforce

Cost Per Hire

Workforce Planning

Job Descriptions

Metrics & Measures Taskforce

HR Metrics & Reporting

Turnover Definition

Performance Management

Taskforce

Performance Management

Diversity & Inclusion Taskforce

Lead Diversity & Inclusion Professional

Diversity & Inclusion Programs

Diversity & Inclusion Metrics

Start-up of the workgroup creating

the standard

Standard in drafting phase

Standard in public review phase

Standard in ANSI approval phase

Publication of the standard

A published American National Standard for Workplace Violence Prevention and Intervention is also

available on the SHRM website.

What Your Leaders Need to Know: Standards Are Useful Tools for Organizations

An overview of general security policies, processes, and protocols that organizations

can adopt to help prevent threatening behavior and violence affecting the workplace

and better respond to and resolve security incidents involving threats and episodes of

actual violence.

.

What Your Leaders Need to Know: Standards Are Useful Tools for Organizations

Designed as a tool to determine accurate and comparable costs of recruitment through

a standard algorithm to calculate the recruiting costs to be incorporated into cost-per-

hire.

What Your Leaders Need to Know: Standards Are Useful Tools for Organizations

Designed as a proposed set of minimum elements of a performance management

system in three areas - goal setting, performance review and performance

improvement plans.

.

What you & your Organizational Leaders Want to Know

Volunteer subject matter experts (like

you) who develop the content of the

standards.

Taskforce members work through a

consensus process to define effective

practices for the HR profession.

Balanced by interest category and

representation of HR profession.

Standards Augment a Profession

Standards are a critical component to evolve a

profession.

• Development of national HR standards

A profession also needs a minimum barrier to entry

into the field.

• Minimum educational requirements

Competencies also denote levels of effective

performance by those in the profession.

• Competency based certification

What is Performance Management?

Performance management is the foundation for organizational effectiveness for employers worldwide. To innovate, develop, sell and maintain goods and services that deliver value to customers, clients or stakeholders, organizations must employ techniques that encourage and motivate employees to perform to their full potential in a manner that adds value to the organization.

(ANSI/SHRM-09001)

• Goal Setting Standard

• Job Description Goals – Day-to-day responsibilities

• Project Goals – Specific assignments

• Behavioral Goals – “How” things are done

• Stretch Goals – Expanding knowledge, skills, or

abilities

• Rating Scale – Measurement; future performance

• Elements • Participative

• Documented

• Specific

• Measureable

• Challenging

• Reasonable

• Time-sensitive

• Flexible

• Monitored

• Top Down

Module 1: Why Performance Management? Key System Components

• Performance Review Standard • Considers:

– Objective and subjective indicators

– Knowledge, skills, abilities, and personal characteristics

• Used for: – Personnel decisions

– Coaching

• Includes: – Training

– Measurement and controls

– Rating scale standards and calibration

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Module 1: Why Performance Management?

Key System Components

Elements

Continuous

Timely

Goal-based Dialogue

Acknowledgment

Two-way Conversation

Documented

• Performance Improvement Plan (PIP) Standard

• Process for resolving persistent performance issues in accordance with documented guidelines

• Requires conversation and documentation

• Measureable results

• Elements • Employee Information

• Relevant Dates

• Description of:

o Performance Discrepancy/Gap

o Expected Performance

o Actual Performance

o Consequences

o Plan of Action • Signatures

• Evaluation

Module 1: Why Performance Management? Key System Components

Is Employee Productivity Stable? SHRM Customized Benchmarking Database

$576,397

$421,233

$287,324

$248,429

$343,246

$322,799

$527,233

$508,020

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2006 2007 2008 2009 2010 2011 2012 2013

Revenue per FTE

Revenue per FTEThe Red Line represents the resession

Value of Effective Performance Management

Organizations with effective performance management practices can have a competitive advantage in maximizing firm-wide productivity over firms without effective performance management.

• Maximizing employee potential • Clarifies expectations for all employees • Addresses employees with low performance • Helps lower unintended turnover by increasing

communication between manager and employees

Performance Management ... and there’s more good news

Does your organization have a formal

employee performance evaluation process?

Yes, 98%

No, 2%

n = 510; SHRM/APT Metrics Poll:2011

SHRM/APT Metrics Poll 2011

Does your organization provide voluntary or mandatory training for the

performance evaluation process?

n = 510

3%

8%

44%

46%

7%

31%

48%

15%

Other

No, training not provided

Yes, voluntary training

Yes, mandatory training

All employees (n = 445)

People managers only (n = 444)

Are people managers in your organization required to support their performance ratings with written behavioral examples as

part of the formal performance evaluation process?

47%

26% 26%

Yes, for all ratings Yes, only for ratings at/neartop or bottom of rating scale

No

Note: n = 481. Percentages do not total 100% due to rounding. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations had a formal employee performance evaluation process were asked this question. SHRM/APT Metrics Poll 2011

Note: n = 463. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations had a formal employee performance evaluation process were asked this question. SHRM/APT Metrics Poll: 2011

Yes, 54%

No, 46%

Does your organization’s performance evaluation process involve a formal calibration or group review process to ensure consistency across ratings/reviews within a group (e.g., unit, department, division)?

Note: n = 249. Only respondents whose organizations had a formal calibration or group review process were asked this question. SHRM/APT Metrics Poll: 2011

5%

2%

15%

17%

61%

Other

No, HR seldom or never attends

Yes, but they just facilitate and do notactively participate

No, but HR does attend meetings whenrequested or under certain circumstances

Yes, and they actively participate

Are HR representatives included in all or a majority of these formal calibration or group

review meetings?

Demographics: Organizational Staff Size

Note: n = 481. Percentages do not total 100% due to rounding. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations had a formal employee performance evaluation process were asked this question. SHRM/APT Metrics Poll 2011

18%

26%

14%

19%

24%

2,500 to 9,999employees

10,000 to 17,499employees

17,500 to 24,999employees

25,000 to 49,999employees

50,000 or moreemployees

Questions?

Thank You!