Performance reviews

A recent study by Mercer highlighted the fact that managers in the public service have been rewarding civil servants with positive performance appraisals and rewards that are well above average. While this is costing the tax-payer a substantial sum, poor practices in employee reviews are not restricted to the public sector: many employers end up over-paying because managers and supervisors are not trained in how to run performance reviews and how to use them for positive effect.

One of the outputs of the Government Benchmarking process of recent years has been the introduction of the PMDS (Performance Management Development System). Put simply, the system uses a combination of interviews and a written questionnaire to evaluate the performance of workers in the civil service and other public sector bodies. Workers are then given an overall rating on a five point scale, with a score of one allocated to the worst performers and five to the highest performers. The Public Service’s PMDS highlights what goes wrong in many performance management processes. Of 19,000 workers’ performances reviewed in its initial operation, only 18 scored a one, and 285 scored a two, on the five point scale. Those who score a one do not normally receive a pay increment, but those who score a two receive a pay rise and are denied the opportunity for a promotion for a year. This leaves the vast majority of civil servants (those rated 3 – 5) earning increments of between 500 Euro and 6,000 Euro on top of the five per cent pay award given under the social partnership agreement this year. A review by the designers of the PMDS found that the system was not being implemented properly. As designed, between 20 and 30 per cent of employees were expect to be graded a four, for example, whereas more than 50 per cent of civil servants were assessed at this level in practice. In one Department, 40 per cent of staff were awarded a score of five.

Anecdotal evidence suggests that many managers in both the public and private sectors have not being properly trained in how to use performance management systems. Many feel embarrassed and unprepared when carrying out performance interviews. Often, they score performance low in confidential written statements, but then give positive reviews during face to face interviews and appraisals. Usually, if an employee ‘deserves’ a lower grade, the manager awards a three or four and counter-balances this by sending the employee on a training course to reskill in the area they are performing badly in. The net result is a confused and unmotivated workforce, and a significant over spend on rewards. So how can you avoid this happening with your performance management system?

Employers need to have invest in Performance Management and Staff Appraisal training. An important first step is to get managers and supervisors to explore staff appraisal, its benefits and the types of systems available. These managers and supervisors then need to take control of the performance management and appraisal meeting by knowing the steps to take before, during and after the meeting. This leads to identifying what really motivates staff to perform and involves them learning how to recognize that there are different personality types who can be managed in different ways. Where staff are underperforming managers need to learn how to close the performance gap through coaching using the GROW model. They also need to equip themselves with appropriate communication techniques for positive performance management including active listening, appropriate questioning, constructive feedback and positive body language. Allied to the review process is the importance of recognising when appraisal and positive performance management is not enough, and knowing when to activate the disciplinary process.

For more information on coaching training in how to carry out performance evaluations call us on 01-296-1578 or email admin@peoplematters.ie.