The value of Employee Performance Management

© 2011 Talent Management LLC 2© 2011 Talent Management LLC 2

How do Annual Performance Reviews make you feel…

• Anxious?• Grumpy?• Unhappy?• Do they go

something like this…?

http://www.youtube.com/watch?NR=1&feature=endscreen&v=U7Low0p7ydQ




Performance reviews are broken…• 4 out of 5 U.S. workers are dissatisfied with

their job performance reviews1

• 46% of respondents said that annual performance reviews are not an accurate appraisal of an employee’s work2

• Psychologists found that at least 30% of the performance reviews ended up in decreased employee performance3

(1) Reuters; (2) Globoforce/SHRM; (3) Psychological Bulletin


Key HR Problems…• 45% of key people will leave their

positions upon economic recovery1

• 72% of workers are not engaged in their work2

• 18% of disengaged employees actually undermine their co-workers’ success2

• Total cost to business…$370B/year2

Source: (1) Employment Dynamics & Growth Expectations, (2) Gallup


Survey says…• 78 % of U.S. workers

said being recognized motivates them in their job

• 69 % stated they would work harder if they felt their efforts were better recognized

Source: Globoforce Mood Tracker

© 2011 Talent Management LLC 6

Non-financial Incentives Work Best

More Effective Used Less


Employee Performance ManagementWhat is it?

Performance appraisals and assessments

Goal and objective management

Competency management Performance appraisal management

90-360 assessments Developmental planning

Career path management Succession management

Talent pool management Coaching

Talent review/assessment Compensation planning

Pay for performance support Visualization (graphs, grids, etc.)


Economic Impact for Business• 91% increased employee performance• 84% decreased cost of hire• 84% increased revenue per employee• 66% improved their ability to determine

projected growth by job category• 49% improved their ability to forecast

annual retirement rates


Actionable development plans alone result in twice the revenue per employee

and a 27% lower turnover rate

Source: Bersin & Associates


What if Performance Appraisals…

• Happened throughout the year

• Were relevant to the skills and metrics pertaining to your job

• Provided feedback from other people besides your manager?


What if Your Personal Development Plan…

• Helped you set relevant goals and objectives

• Suggested appropriate training and development

• Included coaching tips for you and your manager?


What if Your Personal Development System…

• Helped you track, manage, revise and update your goals

• Reminded you of due dates and upcoming commitments

• Provided your manager with insight into your progress?


What if there was an Employee Performance Management System that’s…

Simple,Affordable,

and Flexible?


Talent Snapshot® Business Model• Software as a Service

• Employee Performance Management system

• $159/year/employee• Affiliate Network is key to

Growth• HR and TM consultants,

trainers and coaches• Strategy and OD experts

• Simple, flexible, affordable

Gail Conrad? ? ?

???

Walter Emerson

Michelle Green

Howard Hill

Lynda Ross

Kristen Richards

Laura Roman

Leroy Smith

Yolanda Price

Mike Smith

Nate Wood Susan Michaels Hal Gorden

Ian Stacy

Jenny Sweney

Calvin Underwood

Brent Foster

Megan GantJessica Grims

Adam Simpson

Paul Jackson

Paul Conner

LP

LP

LP

VLP

MP

MP

MP

LP

VHP

HP

MP

LMP

VHP

VHP

MHP

MP

Frank VanDyke

Alice Zender

Ethan Bromer

Ralph Tamsco


Talent Snapshot® Employee Performance Management System…

• Includes employee appraisal on actual performance and predictive, job-specific skills

• Targets training and coaching• Sets performance goals and objectives• Defines, schedules, executes and manages/tracks

development and objectives• Provides ongoing feedback to the employee• On the drawing board: Succession, Career, Leadership

Management and Compensation Planning, more enhancements


Business Case for Employee Performance Management Systems

• Better overall business results - good people practices can increase a company’s value by as much as 30%1

• Insight into your talent pool – stars, diamonds in the rough and questionable performers

• Organizational alignment – right people, in the right jobs at the right time

• Retain top performers – 27% lower turnover rate• ROI on training dollars – skills mapped to training(1) Source: Watson Wyatt


Business Case for Employee Performance Management Systems

• Better overall business results - good people practices can increase a company’s value by as much as 30%1

• Insight into your talent pool – stars, diamonds in the rough and questionable performers

• Organizational alignment – right people, in the right jobs at the right time

• Retain top performers – 27% lower turnover rate• ROI on training dollars – skills mapped to training(1) Source: Watson Wyatt

Cha-Ching!!!


What’s New: The Wisdom of Crowdsaka “Crowdsourcing”

• Collective knowledge trumps individual knowledge

• A truly all-encompassing performance feedback loop

• As Peter Drucker said, “What gets measured gets managed.”


Conclusion• People hate annual performance reviews• Statistics indicate non-financial incentives

work best• Employee Performance Management is

being pursued by top performing companies• Talent Snapshot® is available for managing

appraisals and development plans• Crowdsourcing is the latest trend

The value of Employee Performance Management

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