WASHINGTON, November 28, 2005 - When it comes to practices that improve
employee performance, companies and workers themselves agree there is room
for improvement. This finding is based on a survey of 265 large U.S.
companies across all industries and a complementary survey of 1,100 workers
conducted by Watson Wyatt and WorldatWork.
In designing their performance management programs, most employers have
adopted best practices - including providing a formal yearly review (98
percent), helping poor performers improve (96 percent) and offering
coaching and feedback (91 percent) - but they have been less successful in
implementing them. For example, while 92 percent of programs are designed
to link pay to performance, only 79 percent of employers say that managers
at their organization are moderately or greatly effective at it. Employees
see even more room for improvement with only 52 percent indicating that
their managers tie pay to performance.
"Without improving the implementation of their programs, employers will
have difficulties with aligning the performance of their workforce with
business results," said Laura Sejen, director of strategic rewards
consulting at Watson Wyatt. "In fact, companies with strong performance
management programs post significantly better financial results than those
with weak programs."
Managers also struggle with providing formal career development and
planning. While the vast majority (82 percent) of performance management
programs are designed to include career development, only 37 percent of
employers say that managers at their organizations are at least moderately
effective at providing it. And only 31 percent of employees say their
companies offer career development.
One step toward improving managers´ effectiveness may be to provide them
with the appropriate training. Only 36 percent of organizations have a
formal training program to enhance managers´ ability to manage rewards.
However, managers at companies that offer such a program are more effective
at providing coaching and feedback, providing formal periodic performance
discussions and helping poor performers improve.
"Managing employee performance is more than just tactical; it requires
skills and practice," said Sue Holloway, senior compensation manager at
WorldatWork. "Formal training helps managers develop and hone those
skills."
Additional findings:
Providing formal goal-setting linked to business objectives is a design
component of most (91 percent) performance management programs, but only 74
percent of companies say that their managers are moderately or greatly
effective at it. Additionally, only 48 percent of employees report that a
link to business objectives is provided.
Fewer than six in 10 employers (57 percent) think that managers at their
organization are moderately or greatly effective at providing coaching and
feedback to employees throughout the year; 48 percent of employees report
that this is the case.
Copies of the 2005/2006 Strategic Rewards Survey can be found at:
http://www.watsonwyatt.com/research/resrender.asp?id=w-865&page=1.
About Watson Wyatt
Watson Wyatt is a leading global human capital and financial management
consulting firm. The firm specializes in employee benefits, human capital
strategies, technology solutions, and insurance and financial services and
has 6,000 associates in 30 countries. The firm is located on the web at
www.watsonwyatt.com.
About WorldatWork
WorldatWork is the world´s leading not-for-profit professional association
dedicated to knowledge leadership in compensation, benefits and total
rewards. Founded in 1955, WorldatWork focuses on human resources
disciplines associated with attracting, retaining and motivating employees.
Besides serving as the membership association of the professions, the
WorldatWork family of organizations provides education, certification
(Certified Compensation Professional-CCP ®, Certified Benefits
Professional-CBPTM and Global Remuneration Professional-GRP ®), publications,
knowledge resources, surveys, conferences, research and networking.
WorldatWork Society of Certified Professionals and Alliance for Work-Life
Progress (AWLP) are part of the WorldatWork family.
Contact
Ed Emerman
(609) 452-5967
eemerman[at]eaglepr.com
Jeff Kros
(480) 922-2027
jkros[at]worldatwork.org