No. 06 - March 2011

Introduction:

Welcome to the March 2011 issue of the Forster Emerson e-newsletter. With spring just around the corner, we examine the following:

1. Performance Management: A Democratic Approach?

2. Staff Turnover: How Much Is Too Much?

3. A Human Resources Mission Statement


Performance Management: A Democratic Approach?

Businesses and organizations today increasingly struggle with how to design and deliver performance management effectively. The result is a mind-boggling hodgepodge of programs, processes, tools and techniques in the workplace, with no one really seeming to have “the answer”.

One part of the equation that is usually overlooked is the employee themselves – the person whose performance is being “managed”. What type of feedback do they want? Do they want to be “scored” on their performance? Do they want 360 feedback from their peers? Or do they want an open discussion with their manager?

Generational differences also need to be taken into consideration, both from the standpoint of who is receiving the feedback and who is giving it. As employees, Gen Xs and Ys want feedback all the time and often look forward to – even demand – performance reviews. They see them as a tool to improve their performance and enhance their careers. As managers, their feedback is more collaborative and less hierarchical. Baby Boomers and pre-Baby Boomers, on the other hand, often see performance reviews as punitive and disciplinary, based on a top-down relationship between manager and employee. As managers conducting performance reviews, they behave according to that paradigm.

The tendency in organizations when implementing performance management is to take a “one-size-fits-all approach. The result is often stressful and counterproductive for everyone. Perhaps it’s time to “democratize” the process?


Staff Turnover: How Much Is Too Much?

Given today’s mobile workforce, most businesses and organizations experience staff turnover. And while a certain amount of turnover is to be expected (maybe even desired), excessive turnover can be a sign of serious problems. How much turnover, then, is too much?

It depends. In some lower wage sectors, such as the food service industry, high turnover is the norm, as workers move from job to job to earn a few cents more. As well, much of the food service sector is staffed by high school and university students, who leave to pursue their chosen careers or more permanent employment. But high turnover is not confined to lower wage sectors. In certain positions within higher-paying industries – sales positions in the IT sector, for example – turnover can also be higher than average.

Turnover can also be situational – an employee leaves to relocate with a spouse who is being transferred; a major new employer locates in the area offering higher wages; older workers retire.

The key is to track turnover rates, both for your individual business or organization and your industry sector. Have your turnover rates increased over historical levels? Is your turnover rate significantly higher than your sector? These may be signs that something is wrong.

Knowing your normal turnover rate can help you better plan your human resource requirements. If your turnover rate is typically high, keep your funnel full of potential candidates. It’ll be like being in permanent recruitment mode!


A Human Resources Mission Statement

We’re all familiar with the concept of a Mission Statement – a formal, written statement that outlines the purpose of a business or organization. A Mission Statement defines what the organization stands for and helps guide its actions and decisions, providing a sense of direction.

Mission Statements typically describe “purpose” with respect to the organization’s customers or clients. For a business, therefore, a Mission Statement would define why that business exists in its marketplace. In other words, what particular value and benefits does it provide?

Whenever we’ve worked with clients on Mission Statements, we’ve encouraged the inclusion of some wording that also defines the purpose of the organization with respect to its human resources – its people. For example, we might suggest the following: “To provide a work environment that enables our employees to achieve their full potential”, or “that provides an enjoyable place to work”.

Businesses and organizations meet many needs, both external and internal. While a Mission Statement should always define the purpose of the organization to its external markets, including a reference to its internal human resources can help ensure its actions and decisions reflect its broader impact on our society.



THIS MONTH’S RECOMMENDED READING:

“ReWork”, by Jason Fried and David Heinemeier Hansson.


Got a topic you’d like to see in the Forster Emerson e-newsletter? Email us at info@forster-emerson.com with your suggestions.