Organizations spend a lot of time and energy on the annual performance management process. And for good reason—an effective performance management process can have great benefits for the organization.
In fact, a 2012 study by Pepperdine University's Kevin Groves found health care organizations with strong performance management processes have 20% greater employee productivity than organizations with weaker performance management processes.
But there are a lot of questions about how to get performance management right—ranging from what should go in the form to whether organizations should even have annual reviews. We'll answer all your questions during our national meeting series this summer, but in the meantime, here are the answers to some of the questions HR leaders ask me most often.
- Should we even have annual evaluations?
- Why have numeric performance ratings at all? Shouldn't performance management be all about individual development?
- What should we include in the performance evaluation form?
- How can I get managers to complete evaluations on time?
- Is it worth implementing merit pay if my budget for increases is just 2%?
- My organization has a heavy union presence—what can I do to move to a pay-for-performance culture?