73rd NHRDN Webinar on Importance of Effective Communication during Annual Performance & Rewards Cycle by Ms Leena Sahijwani, (Director – Rewards & South Asia Leader- Women’s Network, GE South Asia) on 29th May 2014
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NHRDN Webinar
May 2014
What will we cover today?
Why focus on effective manager communication?
How to prepare managers for important
communication?
Impact on engagement
Impact on fairness perception
Q&A
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NHRDN Webinar
May 2014
Why focus on effective manager
communication?
Annual Cycle culmination of an year’s hard work for
employee
Managers determine ratings & rewards aligned with
observations through this tenure
HR invests significantly to create a fair and objective
process
Yet…
Actual conversations leave much to be desired
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NHRDN Webinar
May 2014
Common Pitfalls…
Managers feel nervous &/or
unprepared
Insufficient time for the discussion
One Way Dialogue… no employee
involvement
Usage of “negative” words
Generalizations
Employee “shut down” before start
Blaming the system
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NHRDN Webinar
May 2014
Impact on engagement
Employees report dissatisfaction with their performance
management programs across organizations
If delivered well
If delivered badly
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NHRDN Webinar
May 2014
Manager Effectiveness
37%
63%
Effectiveness of Delivering Feedback
Effective Managers Ineffective Managers
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NHRDN Webinar
May 2014
Questions to ponder?
Are trainings focused on
“performance management
system”?
Do we train managers on “how to
deliver performance reviews”?
Does our performance
management system focus on
developmental plans/
improvement plans?
Do we gather feedback on
performance appraisal delivery
effectiveness?
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NHRDN Webinar
May 2014
Effective performance review
delivery involves…
Scheduling sufficient
time…without
interruptions
Rehearsing the
conversation… anticipating
questions
Providing performance
review document before
starting the meeting
Soliciting employee inputs
Being honest and articulate
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NHRDN Webinar
May 2014
Effective performance review
delivery involves…
“Sandwich”: Strengths >
Developmental Feedback >
Encouragement
Focusing on employee
behaviours
Providing specific examples
Offering support and
suggestions to improve
areas identified
Continuing the dialogue on
development plan
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NHRDN Webinar
May 2014
Do your managers…
Avoid difficult questions, referring them to someone else?
Does this make employee feel less valued?
Become defensive if encountered with negative employee
reaction?
Prepare them to respond calmly to negative reactions by
Allowing employees to speak openly
Understanding signs of emotional reactions
Remaining calm themselves
Express dissatisfaction with performance management system
Must Own Feedback to maintain their own credibility
Discuss other employee’s ratings or makes comparisons
Instead explain types of behaviours necessary to achieve a rating
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NHRDN Webinar
May 2014
Invest in
Performance feedback
communication training
Role Plays
Case studies
Managing adverse
situations
Solicit employee feedback
on delivery to shape future
process/ system
enhancements
Development plan focused
approach to make
improvement “real”
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NHRDN Webinar
May 2014
Positive Pay Perception improves
Engagement
Pay perception is
determined by fairness
attached to their pay
decisions
Internal and external
equity critical
How are people paid within
my organization?
How are people paid
outside my organization?
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NHRDN Webinar
May 2014
Pay Perceptions shapes by Pay
Communication
62%
38%
0%
20%
40%
60%
80%
Pay Communication Pay System
Effect on Perceptions of Pay Process
Fairness
Effect on Perceptions of Pay Process Fairness
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NHRDN Webinar
May 2014
Benchmarking
Compensation
information from
organization impacts
engagement positively
Informal sources
negatively effect
engagement
Organizational
information often
inadequate resulting in
informal “chatter”
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NHRDN Webinar
May 2014
Questions to ponder?
Do we train managers on “how to
communicate pay outcomes”?
Are the managers in our
organization
“compensation/rewards
spokesperson”?
Do we have a mechanism to
communicate directly with
employees on pay increase
information?
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NHRDN Webinar
May 2014
Effective pay decision delivery
involves…
Preparation
Gathering information
about employee-
positioning within range,
compensation &
performance history
Identifying issues that may
emerge and preparing
responses
Ensuring un-interrupted
discussion with key
messages rehearsed
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NHRDN Webinar
May 2014
Effective pay decision delivery
involves…
Communicating
Overall process involved
in decision making
Benchmarking process
Factors involved-
individual contribution,
individual pay
positioning, budget
Salary increase
guidelines & it’s
application for
individual
Key performance
messages… linkage of pay
to Rewards
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NHRDN Webinar
May 2014
Manager Communication
• Demonstrating ownership
• Understanding rationale of
salary guidelines well
• Ensuring availability of right
level of information prior to
planning
• Ensuring employee understands
rationale of decision
• Informing employee’s
positioning vs. range
• Communicating in time…
• Dismissing as someone else’s
responsibility
• Leaving things to last minute
• Skirting the issue… concerns don’t
go away by ignoring it
• Asking employees what they were
expecting… it’s bound to be more!
• Committing to increase the salary
• Revealing someone else’s pay
outcome
• Going into discussion without
homework
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NHRDN Webinar
May 2014
Invest in
Ensuring managers understand
compensation concepts well
Ongoing training
Specific training prior to launch
of key programs/ changes in pay
approach
Provide toolkit to help
communicate
Key messages on budget, process,
concepts
Solicit employee feedback on
delivery to shape future process/
communication enhancements
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NHRDN Webinar
May 2014
Effective pay decision delivery
involves…
Communicating
Overall process involved
in decision making
Benchmarking process
Factors involved-
individual contribution,
individual pay
positioning, budget
Salary increase
guidelines & it’s
application for
individual
Key performance
messages… linkage of pay
to Rewards
27. Quality of delivery of Performance
Reviews & Pay decisions directly
impacts engagement
Building quality “delivery skill”
amongst our managers critical
We owe appropriate feedback &
rationale for pay increase to our
employees
In summary..