Some goals are easily measured, but some, like adhering to company values, are harder to measure, says expert Dr. B. Lynn Ware. Values are an important part of the company culture, but how can you make the measurement of values concrete, quantifiable, and qualitative?
For example, says Ware, take a public relations agency that wants to encourage five factors:
- Imagination
- Improvement
- Irreverence
- Initiative
- Integrity
These are great values, but they are hardly behavioral, Ware notes. So she turned those values into more measurable goals:
- Actively encourages people to volunteer new ideas and make suggestions for improvement of the business. (360 Feedback)
- Encourages team members to initiate tasks or projects that they think are important. (360 Feedback; Meeting observation by manager)
- Generates new ideas, products, and/or services that create new opportunities for the company and clients. (Peer and Manager 360)
- Identifies future talent for the company. (Number of recruiter assists/open reqs)
- Takes time getting to know what types of recognition are most meaningful to the team member. (Employee Engagement Survey)
Even with something as soft as a value, you can bring behavioral goals in, says Ware. In the example above, the senior management team was the first to go through it, and 60 percent of their bonus was tied to this. Real teeth.
Pay-for-Performance challenges? Join us on Wednesday, April 30 for an interactive webcast Pay for Performance: Embracing the ‘New Normal’ in Compensation Design. Learn More
Best Practices of Goal Setting
- Ask for employee input. It helps people feel that they are a part of the decision. Employees frequently will say they can do more than you are asking. We’re finding that this is helpful particularly with younger employees, says Ware. They don’t respond that well to top-down goal setting.
- Start small. You can always change the goals later, but keep it simple at first.
- Write it down. Unwritten goals are hard to remember and hard to enforce.
- Expect failure. You won’t have 100 percent success at everything. It’s OK to learn from failure. “All right, this didn’t happen; what can we do to make it happen?”
- Recognize effort. As progress is made toward a goal, it’s important to give feedback and recognition. “You’re doing diligent work and I’m sure you’ll make your goal and contribute for the team.” (The main reason for leaving, according to the exit interview, is that “I wasn’t recognized for the effort I put into my job.”)
- Encourage “small step” progress. Set milestones so that you can measure progress even on a long-term project.
- Recognize that goals may have to change. Ware advocates at least quarterly meetings around goals. Are priorities changing? Has the environment changed?
Other Tools that Encourage Alignment
- Business Planning Sessions. Include people in those planning sessions.
- Enterprise Software. Performance management tracking can be helpful, but software itself won’t do it for you, says Ware. It doesn’t replace a manager sitting down with an individual and making sure goals are SMART and that the person has bought in to the approach.
- Balanced Scorecards. Dashboards are helpful for tracking important business metrics.
- Town Hall Meetings. These are a great communication vehicle to reinforce mission and progress toward goals. No employee ever said “too many town hall meetings,” says Ware. It’s usually the opposite—employees don’t know enough about how the business is doing.
- One Page Business Plan—Ware’s smaller clients have found this very effective.
Comp is never easy, but in today’s environment it’s even harder. Pay-for-performance is the new normal in every aspect of compensation. Tighter budgets, more expensive markets, stronger competitors, and better management are driving top to bottom evolution in performance-based pay.
But it’s not all that easy to make pay-for-performance work. You need a thorough understanding of the best practices and potential pitfalls. How to get there? Fortunately there’s timely help in the form of BLR’s new webcast—Pay for Performance: Embracing the ‘New Normal’ in Compensation Design. In just 90 minutes, you’ll learn the circumstances that support pay for performance, and about the metric identification and goal setting needed for success.
Register today for this April 30th interactive webinar. Or find out more.
Is pay-for-performance the new normal?. Join us for an interactive webcast Pay for Performance: Embracing the ‘New Normal’ in Compensation Design. Earn 1.5 hours in HRCI Recertification Credit. Register Now
By participating in this interactive webcast, you’ll learn:
- Why performance is the “new normal” for most jobs, even those never held to this type of standard before
- How this “new normal” has impacted base salaries and other types of pay programs
- Five great reasons to embrace P4P
- Who loves P4P, who hates it — and why!
- How to define objectives, goals, and metrics
- Tips on communicating achievements, rewarding success (or not), and celebrating accomplishments
- How to track, how often to track, and what to track
- Reasons why pay for performance sometimes doesn’t work and how to effectively maneuver around them
- Communication strategies for discussing your P4P programs
- Action plans for companies wishing to establish or improve P4P practices at their organization right now
- And much more!
Register now for this event risk-free or find out more.
Wednesday, April 30, 2014
1:30 p.m. to 3:00 p.m. (Eastern)
12:30 p.m. to 2:00 p.m. (Central)
11:30 p.m. to 1:00 p.m. (Mountain)
10:30 a.m. to 12:00 p.m. (Pacific)
Approved for Recertification Credit
This program has been approved for 1.5 recertification credit hours toward recertification through the Human Resource Certification Institute (HRCI).
Join us on Wednesday, April 30, 2014—you’ll get the in-depth Pay for Performance: Embracing the ‘New Normal’ in Compensation Design webcast AND you’ll get all of your particular questions answered by our experts.
Train Your Entire Staff
As with all BLR/HRhero webcasts:
- Train all the staff you can fit around a conference phone.
- You can get your (and their) specific phoned-in or emailed questions answered in Q&A sessions that follow each segment of the presentation.