Poll question
“Do you think the current economic crisis is having any impact on the way in which performance is managed?”
How you responded
This is an interesting time for performance management. The press is packed with stories of yet another 'fat cat' bonus payout and the cries of 'no reward for failure'. Yet even in the ailing banking sector front line staff need to carry on with the day to day operations. They need to work even harder to keep hold of their customers and make sure they don’t fall even further before the light starts to shine at the end of the tunnel. The key for many businesses is to keep the energy and motivation of staff high to recognise and act on new opportunities as they present themselves. Not easy when times are tight and jobs at risk.
So what did you think are the issues facing performance management in the current climate?
Well, a staggering 96% of you thought that it is more important than ever to manage the performance of key talent and 92% thought there was more emphasis on performance management generally.
However, 92% of you also thought that there was closer scrutiny of poor performance which may account for this and 88% thought it was necessary to reassess the measures of performance to reflect a more challenging work environment.
In terms of rewarding performance, 63% thought it is now more difficult to reward good performance but pay does not seem to be the answer with 56% disagreeing that more organisations are adopting performance related pay and 90% believing organisations have to be more creative about how they reward performance and use more non-financial incentives.
Finally, 67% of you responded that individuals are placing more emphasis on managing their own performance effectively and 61% agreed that rising levels of job insecurity are making it difficult to maintain levels of engagement.
Some of the insights that the respondents offered to explain these figures included the need to understand who the key performers are and make sure they are managed effectively to getting a better understanding of capability as a way of avoiding redundancies.
It was interesting that a number of respondents specifically referred to how they are using the downturn as an opportunity to review their operations including how to define and measure performance. One commented 'We are using the downturn in business and resultant free time to improve our infrastructure in preparation for the recovery – to ‘hit the ground running’ more quickly than our competitors'. And another 'I think the economic crisis is making people more mindful that their performance is important, not only to them but also for the organisation and are therefore keen for performance to be managed effectively…'.
Others believed the key to maintaining performance levels was down to communication and transparency about what performance means, becoming a values based organisation creating meaning beyond bottom line results or shareholder value, good leadership skills and developing the organisational capability to recognise and manage performance effectively.