David's Employee Performance and Talent Management Blog

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February 2008

Recent Articles

February 28, 2008 4:00 AM

Rethinking Your Pay for Performance

Applying consistent application of pay-for-performance rules at all levels in an organization

I picked up on this article on the Know HR blog about how Comcast's founder says he will work for $1/year, and other executives are accepting lower cash bonuses. This is a good story about executives taking positive steps, as all too often, employees are the ones whose bonuses will be reduced or even cut in a downturn. This is a great message on many levels: for Comcast employee and investors, for HR and the market as a whole.

With the popularity of pay-for-performance programs, organizations are increasingly tying employee performance to cash or other incentives. The reality is that for these programs to truly work, there must be a consistent application of rules at all levels in the organization. When the board of an organization approves large bonus packages for its executives, there needs to be an eye on the trickle down impact of this action. While executives are getting bigger bonuses, if the organization then turns around and cuts back a mid-level manager's pay-for-performance program resulting in a smaller bonus in a given year, that manager isn't going to see as much value in this program. If employees and managers don't buy into pay-for-performance, the program is failing to meet its true goal -- employees investing at a personal level and being rewarded for their achievements.

In rolling out and managing a pay-for-performance program, organizations need to ensure they have the right solution in place and a long-term strategy to manage the program as a whole. Ask the following questions:

• How do you see the program growing or changing over the next two, three or even five years?
• How will you ensure consistency in the application and measurement of the program at the individual level, and organization-wide?
• How are you going to manage changes in the business' performance?

Without a solid plan that uses technology as an enabler in an overall pay-for-performance strategy, the program has the potential to backfire, making employees unmotivated by the program instead of inspiring them to perform at a higher level and drive the organization's success.

Pay-for-performance is a proven and powerful way to motivate and retain employees, but like all HR programs, it needs to be part of a bigger picture strategy. Pay-for-performance must connect with all other talent management programs to ensure that they are accurate and complete, and managed the same way across the organization. The power of pay-for-performance programs to motivate and drive engagement is based on these factors, otherwise, it become just another bonus structure, which isn't going to retain employees in the long term.

For more information on pay-for-performance check out this section on this blog: http://www.halogensoftware.com/blog/Pay_for_Performance_.php

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February 26, 2008 6:45 AM

Does HR Need a Name Change?

Renaming HR to reflect a truly strategic function within organizations

I just read a great post on Kris Dunn's HR Capitalist Blog about how Seth Godin suggested that the name of the HR function should be changed and then try to be exceptional.

For those of you not familiar with Godin, he is a well known and respected marketer, so HR isn't normally something he focuses on, but he makes some interesting points. His argument is that HR has grown up with a tactical focus, which was fine unless your goal was to do something amazing. He goes on to suggest that HR be renamed "talent" so that HR can change what they do. He acknowledges that this may seem like spin but:

"What if you started acting like the VP of Talent? Understanding that talent is hard to find and not obvious to manage. The VP of Talent would have to reorganize the department and do things differently all day long (small example: talent shouldn't have to fill out reams of forms and argue with the insurance company... talent is too busy for that... talent has people to help with that.)"

It's an interesting idea, especially when more and more organizations are trying to move HR to become a truly strategic function within the organization, and the benefits of this approach are proven. Perhaps the idea of human "resources" and its history relegates it to a tactical role in too many organizations, leaving little room for innovative thinking or truly strategic approaches.

In his post commenting on the Godin piece, Dunn argues that many in the HR profession are still personnel people, focused on transactions and that a "better plan is to offer up some professional credentials that transcend the SPHR, and focus on recruiting, performance management, innovation, leadership development, etc. The high end skills that allow someone to call themselves 'Talent.'"

Based on what we see everyday with our customers, there's definitely a mix of transactional and more strategic people working in HR across the globe. The most successful organizations we work with are those that get the idea that a tactical transaction is a means to an end, and not just something to check off the list. I’m not sure that HR needs a name change, but maybe we all need to take a hard look at how we’re doing business and where HR fits in so we’re moving toward being less about "resources" and more about "talent".

What do you think? Does HR need another name change?

PermaLink | Trackbacks(0) | Add/View Comments(0) Posted by David

February 14, 2008 7:30 AM

Job Seeker Mistakes

What to Avoid... and Insights from HR

I know we talk a lot about talent management here, but I thought this article on the Know HR blog on The Most Common Mistakes Job Seekers Make, is well worth a read.

It shares a few great insights and reminders -- a good one to send around to the rest of your HR team. Here's a few of the "tips" it shares for job seekers:

• Know Thyself -- The article says that job seekers tend to apply for jobs they aren't actually qualified for.
• Do Your Homework -- HR workers say their biggest peeve is ignorance. No surprise to the seasoned HR professional. This is considered particularly sinful with the plethora of information available on the Web.
• Don't Play Hard to Get -- Keep your voicemail professional. Ensure your Web presence is clean. I can only imagine the surprises that have been found on MySpace by HR pros around the world.

And my personal favorite -- don't forget your manners. Saying thank you is important and shouldn't be underestimated. Job seekers need to thank potential employers, because any good employer will expect this, and isn't that somewhere you'd want to work? Manners go a long way for everyone -- regardless of what side of the table you may sit on.

What are some of the biggest job seeker mistakes you've seen?

PermaLink | Trackbacks(0) | Add/View Comments(0) Posted by David

February 11, 2008 6:15 AM

Recap - HR Professionals of Ontario Show

Innovation, Evolution, and Revolution

Earlier this month was the annual HR Professional of Ontario (HRPAO) show in Toronto, one of the biggest HR shows north of the 49th parallel. This year's event was built around the themes of innovation, evolution and revolution, definitely timely topics for HR in 2008. The role of HR professional is rapidly changing from a tactical, process-driven one to a key business function.

The Halogen team was at the show last week, including our CEO, Paul Loucks who was there to speak on Using Technology to Cultivate a High Performance Workforce. His presentation examined how organizations can use Web-based systems to reduce the administrative burden of employee reviews, development planning and even compliance reporting. A big part of this presentation focused on common pitfalls and how to avoid them -- you can check out more by reading this whitepaper (Employee Performance Management: Making it a Reality in your Organization).

This year's show had a fair bit of traffic, and lots of educational sessions. A real range of vendors were on this year's show floor, particularly a lot of health-focused companies. Attendees were definitely interested in talent management and wanted to learn more about how they can drive more strategic value out of the appraisal process.

All and all, a good and productive show. A great start to the 2008 trade show season!

What shows are on your calendar for this coming year?

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June 30, 2008 8:15 AM

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June 26, 2008 9:15 AM

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June 23, 2008 5:15 AM

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