A brief description of the current state of performance appraisal systems, and the value of making changes

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&fea
ture=endscreen&v=U7Low0p7ydQ
© 2011 Talent Management LLC 2

3. 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
© 2011 Talent Management LLC 3

4. 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
© 2011 Talent Management LLC 4

5. 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 5

6. Non-financial Incentives Work Best
More Effective Used Less
© 2011 Talent Management LLC 6

7. Employee Performance Management
What is it?
Performance appraisals and Goal and objective management
assessments
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.)
© 2011 Talent Management LLC 7

8. 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
© 2011 Talent Management LLC 8

9. Actionable development plans alone
result in twice the revenue per employee
and a 27% lower turnover rate
Source: Bersin & Associates
© 2011 Talent Management LLC 9

10. 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?
© 2011 Talent Management LLC 10

11. 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?
© 2011 Talent Management LLC 11

12. 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?
© 2011 Talent Management LLC 12

13. What if there was an Employee
Performance Management System
that’s…
Simple,
Affordable,
and Flexible?
© 2011 Talent Management LLC 13

14. Talent Snapshot® Business Model
• Software as a Service LP Michelle Green
MP VHP VHP
Jenny Sweney
Susan Michaels
• Employee Performance
Adam Simpson Nate Wood Hal Gorden
Management system ? Mike Smith
Brent Foster
Ian Stacy
• $159/year/employee LP MP HP
Leroy Smith VHP
• Affiliate Network is key ? Kristen Richards
Yolanda Price
Laura Roman
to Growth LP MP
Alice Zender Jessica Grims
MP MHP
Megan Gant
?
Paul Conner Lynda Ross
Calvin Underwood
• HR and TM consultants,
Ethan Bromer
Howard Hill Frank VanDyke
trainers and coaches
VLP LP LMP Tamsco
MP
• Strategy and OD experts
? ? ?
Ralph
Paul Jackson
Walter Emerson Gail
• Simple, flexible,
Conrad
affordable
© 2011 Talent Management LLC 14

15. 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
© 2011 Talent Management LLC 15

16. 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
© 2011 Talent Management LLC 16

17. Business Case for Employee Performance
Management Systems
• Better overall business results - good people
practices can increase a company’s value by as
Cha-Ching!!!
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
© 2011 Talent Management LLC 17

18. What’s New: The Wisdom of Crowds
aka “Crowdsourcing”
• Collective knowledge
trumps individual
knowledge
• A truly all-
encompassing
performance feedback
loop
• As Peter Drucker said,
“What gets measured
gets managed.”
© 2011 Talent Management LLC 18

19. 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
© 2011 Talent Management LLC 19