The Keynote Panel Discussion, “Where Do We See Performance Management In The Future?” was moderated by Phillippa Youngman, Managing Director, Pivot Software and featured panelists: Wilma Stuart, Executive General Manager Human Resources, McConnell Dowell, Margaret Fittler, General Manager Corporate Services, Drillsearch and Damien Waller, Human Resources Manager, Georgiou Group.
Given the fall-out potential and the fear and loathing engendered by the performance review process, is it time for organisations to consider killing them off or radically overhauling the way they’re done? For many employees, receiving the annual or bi-annual performance review is on par with tooth extraction, without the pain relief. Managers who enjoy handing them out are also in short supply.
Badly-run reviews can leave employees scratching their heads about what they’re meant to be doing, and even drive good workers into the arms of rival firms, warns the CEO of Australian recruitment firm Peoplebank, Peter Acheson. Given the fall-out potential and the fear and loathing engendered by the process, is it time for organisations to consider killing them off or radically overhauling the way they’re done?
Though many major companies still haven’t taken the leap, most are aware that their current systems are flawed. CEB found that 95% of managers are dissatisfied with the way their companies conduct performance reviews and nearly 90% of HR leaders say the process doesn’t even yield accurate information. Evidence would suggest that Companies are starting to re-evaluate the value of the Performance Review. Deloitte research has shown in a survey of 3000 companies in 100 countries that only 10% now feel that performance reviews are an effective use of time. San Jose Mercury News reports that 50% said they were of no use at all.
The result is that many companies are choosing to scrap performance reviews. More than half the companies Deloitte surveyed are either currently redesigning their system, or are planning to overhaul it within the next 18 months. As at September, one of the largest companies in the world, Accenture, who employ around 330,000 employees, will do all its employees and managers an enormous favour: It will get rid of the annual performance review. CEO Pierre Nanterme has told the Washington Post that the firm will disband rankings and the once-a-year evaluation process starting in the financial year 2016 and in its place will implement a more fluid system, in which employees receive timely feedback from their managers on an ongoing basis following assignments.
Accenture are joining a small but prominent list of major corporations that have had enough of forced rankings, the time-consuming paperwork and the frustration among managers and employees alike. 6% of fortune 500 companies have got rid of rankings accounts to the management research firm CEB.
Margaret Fittler has over 15 years’ experience as a HR professional and has been responsible for a broad range of human resources functions nationally and internationally. Margaret has two master’s degrees; one in Human Resources Management and the other in Occupational Health & Safety as well as a diploma in Quality Management Systems. Margaret has held positions as: General Manager HR DeltaSBD; Executive HR Manager, Transfield Services; Head of Human Resources, ANSTO; Human Resources & EHS Manager Asia Pacific, Tyco Electrical & Metal Products and National HR & Organisational Change Manager, Komatsu.
Damien Waller, Human Resources Manager, Georgiou Group. Damien is accountable for all areas of the broader People function including Human Resources, Industrial Relations, Learning & Development and Recruitment within Georgiou.
Wilma Stuart is an experienced generalist HR practitioner with a sound understanding of the inherent complexities in delivering effective HR solutions and initiatives in a variety of working environments. Wilma has had responsibility for all facets of the HR function through managing small teams across multiple sites throughout Australia and the Asia Pacific region. Success in this area has required Wilma to forge and leverage key networks at senior levels within the organisations she has worked with and numerous external parties. Additionally, Wilma has a proven track record in steering an organisation to respond to both cultural and organisational changes. Whilst very results orientated and bottom line focussed, Wilma’s leadership style is one that fosters a cohesive team environment that promotes and develops the skills of individual team members to encourage the growth of new ideas and quality initiatives.