Issue link: http://read.uberflip.com/i/1037
www.iltanet.org 10 Peer to Peer BEST PRACTICES Survey Finds Improving Performance Review Systems Key to Productivity A s bad economic news continues to trouble the legal profession, firms are not only making an extra effort to do more with less, but also to do more with what they already have. Fortunately, the Performance Management Review, a recent survey by HR consulting firm Expert Training Systems (ETS), concludes that one way to increase employees' contributions may be as straightforward as tweaking performance review, promotion and career development processes. PROFESSIONAL SERVICES EMPLOYEES DISSATISFIED The survey, based on the feedback of over 175,000 employees in the leisure, financial services, professional services and manufacturing sectors, found that within the professional services sector, 43 percent are dissatisfied with the systems in place to review performance, as compared with an all-employee benchmark of 38 percent. One reason cited for this unhappiness in professional services is an overemphasis on an annual, formal process, when more frequent, informal feedback is desired. In fact, when asked about satisfaction with the performance review system, only 57 percent were satisfied, as compared with a 66 percent satisfaction rate in the leisure sector. Recommendations include aligning performance measures with business objectives at the individual, business unit and group level, so that employees can more clearly see the results of their contribution. BUT MANAGEMENT IS HIGHLY REGARDED A bright spot in the survey shows that professional services employees feel well managed and supported by their supervisors. In fact, professional services rated management more highly than any other sector, with 85 percent stating that they feel well managed, 87 percent saying that their managers show adequate appreciation, and 89 percent indicating that their managers provide needed support. This data gives firms strength when considering changes, since employees and managers are already on solid footing. Dr. John Mahoney-Phillips, on the Leadership, Performance and Talent Team at UBS AG, says local managers can bridge the gap between employees and senior management, if done properly. "While local managers should feel encouraged," he says, "they also have a greater responsibility to create a clear line of sight between local goals and corporate objectives." This also indicates a continuing emphasis on helping managers to manage better through ongoing feedback and coaching. TELL ME WHAT TO DO — PLEASE! Of course, getting a line of sight to those firmwide objectives can be done in an obvious, but often overlooked way: tell employees exactly what you want them to do. As simple as it sounds, professional services are falling down on this seemingly straightforward task. When employees were asked if they knew what the company wanted to achieve over the next year, the survey found an astounding 22 percentage point difference between professional services (at 66 percent) and leisure (the most informed at 88 percent). Even the all-employee average is still 8 percentage points higher, at 74 percent. However, people don't usually like being told what to do, so what choices does a firm have if it wants employees striving for a common goal? ETS suggests incorporating employee involvement in goal-setting, as well as to use what they call "cascading goals." These allow senior leaders to set