shifting away from annual performance reviews to increase productivity and engagement

Shifting Away from Annual Performance Reviews

Increase Productivity and Engagement'

Geoffroy de Lestrange,EMEA Product Marketing Manager

@csodemea

2Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce.

CLIENTS 2,805

USERS 27.7M

COUNTRIES191

LANGUAGES42

OFFICES19

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DusseldorfMunich

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Tokyo

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Who we are

As of September 30, 2016

New Delhi

IDC Consulting Copyright 20163

Key Takeaways

Flexible working has a direct impact on employee engagement

The employee performance review is not dead

It needs to be justified by useful outcome for both company and employee

Collaboration has a significant impact on financial performanceHR must sell itself better to its internal customers in line of business functions

13% of workers feel passionate about their work (Deloitte)

53% of employees say reviews don’t motivate them to work harder

(Globoforce)

Shiny happy people?

Source: IDC, Cornerstone OnDemand HR-LOB Survey, March 2016

71%

Flexibility, a worthwhile investment

6

Correlation between happiness and flexibility measures

Source: IDC, Cornerstone OnDemand HR-LOB Survey, March 2016

Impact on performance management

IDC Consulting Copyright 2016

What are we talking about?

The work environment is changing

Once upon a time… Nowadays…

HR is materially changing as a result

10

FROM A FOCUS ON PROCESS

AND AUTOMATION…

… TO A FOCUS ON BUSINESS IMPACT AND

ENGAGEMENT

Old reviews are disappearing

credit attribution:paul prescott / Shutterstock.com

What’s the target

• Know your employees’ skills• Ensure that the right person is at the right

position with the right skills at the right moment

• Develop your employees’ strengths• Plan for workforce and succession

HR closer to the business

Perception of HR support of the business

UK: 53%UK: 43%

UK: 38%UK: 24%

Employees now truly at the centre

Don’t mix up everything!

Old

perfo

rman

ce re

view

Ongoing performance review

Talent & development review

Compensation review

17

Performance reviews evolving

Source: IDC, Cornerstone OnDemand HR-LOB Survey, March 2016

Frequency of reviews in Europe

UK: 30%

UK: 22%UK: 50%

Flexible performance management

Social recognition

Highlighting best

colleaguesObservation

checklistRealtime feedback

Goal setting

Badges

Coaching

Development

Awards

Social sharing

Skills matrix

Collaboration and growth are correlated

Source: IDC, Cornerstone OnDemand HR-LOB Survey, March 2016

Higher proportion of high-growth organisations in respondents with stronger collaboration incentives

Fair analysis

• Performance compared to target objectives (“SMART”

goals)

• Performance variation from one year to the next

• Performance variation following talent management

measures (e.g. training, development plan…)

• Performance compared to target positions

Real-life evaluation

Observe, record, and assess skills in the field to determine employee competency

Source: Gallup; Employees Want More From Managers, 4/2015

The relationship between the Employee and their Direct Supervisor is the #1 driver to employee engagement

Managers account for up to 70% of

variance in employee engagement.

Manager’s Impact on Engagement

23

Necessity of HR/Business alignmentHR areas of improvement in Europe

Source: IDC, Cornerstone OnDemand HR-LOB Survey, March 2016

RH

LOB

A pragmatic business-driven approach

Use the power of analytics

REPORT

Standard & custom reports

embedded in talent platform

Reporting

PLAN

Big data solution for workforce planning

Workforce Planning

PREDICT

Predictive, prescriptive analytics for

managing talent decisions

Insight - Predictive analytics

DISCOVER

Highly visual & interactive

dashboards to easily slice & dice

talent data

View - Business

Intelligence

26

Benefits

Payroll

TalentHRISHRISTime &

Attendance

TalentHRISHRIS

HRIS

HRIS

HRIS

HRIS

HRIS

HRIS

HRIS

HRIS

Old days….OperationalToday…Business Driven

2000 2015+

Conclusion

5 Key Drivers for HR Impact

Source(s): 1. Bersin, Rethinking L&D, Learning Trends, 2015

Enable talent

mobility & create

leaders at all levels

MOBILITY

Build a culture of passion

and purpose

CULTURE

Develop deep partnership

with the business to set the right priorities and adapt rapidly

BUSINESS

Connect the distributed workforce, enhance

collaboration and

support innovation

CONNECT

Drive engagement,

offering flexibility and development opportunity

ENGAGE

Small business or Enterprise, discover your Cornerstone Performance

solution on booth E30