How Disengaged Employees Could be Sabotaging Your Company’s Success

What comes to mind when you hear the word “sabotage?” Dark-cloaked spies lurking amongst shadowed enclaves?  James Bond detonating a strategically placed explosive device, just seconds after making his escape from a secured facility?  Hackers introducing malicious content into the launch sequence codes of a nuclear missile?   Great for Hollywood, but a little farfetched for those of us in the everyday workplace.

Despite the unlikelihood of any of the above taking place in a workplace near you, many would be surprised to learn that sabotage is actually a fairly common occurrence in today’s workplace.

Sabotage?  In my Company?  No way!

The origins of the word “sabotage” are questionable, but most sources seem to point back to similar backgrounds.  In the 14th-16th centuries, French and Dutch workers found that they could stop the mills and textile looms by throwing a wooden shoe—a “sabot”—into the cogs of the machinery.  Doing so would either shut down production completely, or would cause the cogs to break over time.  Therefore, a discontent worker could seek revenge by “sabotaging” a very expensive piece of machinery, thus shutting down production.

Pretty devious, right?  But does that happen today?

Sabotage can take two forms—active and passive sabotage.  To simplify these two terms, think of active sabotage as doing something you shouldn’t be doing which causes harm to the organization.  Passive sabotage is not doing something you should be doing, which thereby harms the organization.

For an amusing experience, take a look at the Simple Sabotage Field Manual, created in 1944 by the US Government Office of Strategic Services.  As the precursor to the CIA, the Strategic Services Office created the manual to give ordinary citizens of other countries a guide that they could use to disrupt their countries’ wartime policies towards the US.  It’s interesting to see how so many of these concepts relate to active and passive sabotage in organizations today.

 

A few instructions from the 1944 Simple Sabotage Field Manual:

  1. Managers and Supervisors—To lower morale and production, be pleasant to inefficient workers; give them undeserved promotions. Discriminate against efficient workers; complain unjustly about their work.
  2. Employees—Work slowly. Think of ways to increase the number of movements needed to do your job: use a light hammer instead of a heavy one; try to make a small wrench do, instead of a big one.
  3. Organizations and Conferences—When possible, refer all matters to committees, for “further study and consideration.” Attempt to make the committees as large and bureaucratic as possible. Hold conferences when there is more critical work to be done.
  4. Telephone—At office, hotel, and local telephone switchboards, delay putting calls through, give out wrong numbers, cut people off “accidentally,” or forget to disconnect them so that the line cannot be used again.
  5. Transportation—Make train travel as inconvenient as possible for enemy personnel. Issue two tickets for the same seat on a train in order to set up an “interesting” argument.

Humorous, but many of these forms of sabotage sound familiar—even today!

Engaged employees are actively contributing to the success of the organization.  Disengaged employees sabotage the organization’s progress.  Sometimes, this is active sabotage.  A disengaged employee may intentionally cause harm to the organization.  We find, however, that this is fairly uncommon: less than 4% of employees are actively disengaged, according to our DecisionWise research.

Quite common is the employee that commits “passive sabotage” in the organization.  These are those employees, for example, who may not report a quality concern when it’s noticed, go the extra mile for the customer, help in training the new guy, or remain attentive in meetings.  It may be the person who simply doesn’t seem to care about anything beyond doing what’s required, and then clocking out.  Our DecisionWise Employee Engagement research has found that roughly 28% of employees fit into this category.  They are those we refer to as the “Opportunity Group.”

“Sabotage” may seem like a harsh word to use, but it’s an appropriate one, nonetheless.  Merriam-Webster defines sabotage as “an act or process tending to hurt or to hamper.”  Wouldn’t, then, a disengaged employee fit this definition?

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360-degree Feedback as a Critical Turning Point in Life

360-degree Feedback as a Critical Turning Point in Life

A turning point is a crucial or transformative shift in our ways of being and doing.  “Crucial” implies that this change is necessary, and is likely to influence future events or actions. “Transformative” suggests that the turning point alters the way we think about the world and our interactions with it.

Events or experiences that qualify as turning points typically have the following characteristics:

  1. The event or experience wakes us up to a reality we have willfully or naïvely ignored.
  2. Turning points create dissonance—the uncomfortable feeling that stems from holding conflicting attitudes and beliefs.and, most important…
  3. Crucial turning points force us to see the world anew, or through a different lens.

A central theory of human nature is that each of us creates a life plan or script in early childhood.  Children are highly vulnerable to the messages from parents, teachers, and other role models.  These messages tell the individual who she is or who she should be.  Some messages are positive and growth enhancing; others are negative and growth inhibiting. In response to these messages, children (you and I) make a number of decisions that combine to form a life plan or script.  We may not be fully aware, though, that we are living a script.

This is where turning points come into play.  When we have experiences, or are presented with information that attempts to break the patterns of thoughts that make up the script, we have a choice to make: either lean into the new information or run away from it.

In coaching leaders, I find that the 360-degree feedback process can serve as a powerful turning point opportunity, dependent on how the individual reacts to the feedback.  In many cases, the leader—after receiving the feedback report—will quickly discount the data by using strategies such as blaming raters for giving inaccurate feedback, playing numbers games in the report, or writing off the whole process as a waste of time.

Related Blog: Using the SARA Model to Learn from 360-Degree Feedback

Leaders who use 360-degree feedback as a turning point take time to fully understand the perceptions of key stakeholders.  They avoid jumping to conclusions.  They follow up with raters after the survey to ask additional questions and get valuable insights and recommendations.  And, most importantly, they act as anthropologists—tenacious about understanding the perspective of others.

Based on my experiences in working with leaders who make significant changes, the term 360-degree feedback has taken on a whole new meaning.  Yes, the process allows the leader to see his or her effectiveness from multiple perspectives.  More important, however, is that often a leader who goes through the process goes on a journey and ends up back where he or she started, but with a completely different view of the world.

The words of T.S. Eliot fit beautifully here:

We shall not cease from exploring
And at the end of our exploration
We will return to where we started
And know the place for the first time.

Register for the webinar: Making 360 Feedback a Leadership Turning Point

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Dealing with the Employee Engagement Skeptics

Dealing with the Employee Engagement SkepticsOf the many obstacles to improving employee engagement in an organization, creating buy-in for employee engagement surveys and respective change initiatives is perhaps one of the most challenging—and the most prolific.  Are senior executives actually indifferent about employee engagement?  Are managers too close-minded to realize the positive effects of engagement?  Are employees too needy or too hard-to-please?  The answer to any of these questions is simply “No.”  Don’t believe me?  Keep reading.

Senior Executives

DecisionWise recently brought on a group of student interns from Brigham Young University to conduct a study of employee engagement best practices. Among other interesting conclusions, this study found that a significant portion of companies reported that senior executives would clearly buy into employee engagement initiatives if provided with an executive summary of the findings—including potential action items that would directly impact the bottom line.  The keys here?  Clear findings with clear recommendations for action.

Executive teams’ self-interests are similar across many organizations.  You will want to anticipate the answers to these potential questions when working with members of this team:

  • What is driving engagement in our organization?
  • How does engagement impact our bottom line?
  • How do we measure up with competitors?
  • What are my employees saying, and why does it matter?

Answering these questions in an executive summary is the most effective way to create buy-in with senior executives.  From the companies surveyed, one firm indicated that having an executive summary “made all the difference” in getting buy-in from the company’s senior management.  Other companies commented on the design of the executive summary, specifically mentioning the influence of displaying the top five drivers and the top five inhibitors of engagement in the firm.  I’ll ask again, are senior executives indifferent when it comes to employee engagement?  Definitely not—they just might not recognize the financial power engagement holds.

Managers

Managers, like senior executives, are concerned with the organization’s bottom line; however, managers also crave understanding of a company-wide vision for the engagement initiative.  Why does implementing cultural change matter?  Answering this question with rock-solid financial and operational figures and a concrete definition of your vision for the employee-engagement project will help you get buy-in from this group.  So, are managers actually close-minded?  No, they simply need help seeing “the big picture”—one that covers all departments, locations, and job levels in the organization.

Employees

Disengagement breeds disengagement.  Some studies report that disengaged employees annually cost firms $3,400 for every $10,000 of salary.  If an engagement initiative starts but does not succeed, engagement rates fall according to the following pattern:

  • 33% of employees are engaged before any surveys are issued.
  • 25% (↓ 8%) of employees are engaged if surveys are completed, but a firm does not create any action plans.
  • 20% (↓ 5%) of employees are engaged if surveys are completed, action plans are made, but no follow-through is achieved.

Thus continues the vicious cycle, unless and until the engagement initiative is completed successfully.  Survey results indicate that working on action plans that can be accomplished more quickly and more early in the year help employees see immediate changes, thereby creating buy-in.  In our experience working with companies in over 60 countries, we’ve witnessed a very common trend: employees don’t want promises; they want action.  Are your employees really asking for too much?  Not at all.

If you’re experiencing some push-back from any of these groups as you prepare to roll out another employee-engagement and cultural-change program, try the above recommendations.

Have you experienced friction from different groups in your organization when trying to start employee-engagement surveys and cultural-change initiatives?  How have you responded to the skepticism?  Share your stories with us in the comments.

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Coaching vs. Corrective Action: Distinctions for Managers

Over the years as I have coached emerging leaders, I’ve noticed that one of the biggest challenges for both managers and leaders is determining when to employ strategies and tactics of either coaching or corrective action when working with employees.  I generally make a point of explaining the difference between the tactics briefly in each webinar I host.

For some, distinguishing between the two tactics can be daunting.  While preparing for my next webinar on Thursday, I put together some key discussion points to help leaders make this distinction. These points are aimed at helping them improve their employee relations and talent management processes.  Here’s a preview of my discussion points:

Coaching

Coaching—whether for leaders or for subordinates—is unique in that is involves a collaborative process between the coach and the recipient.   Coaching is done when an employee is already meeting expectations, and is used as a method to establish self-directed goals.  When successfully coaching employees, managers open a two-way discussion to create an environment in which the employee feels comfortable being sincere with his or her superior. The employee is encouraged to set personal development goals that he or she can monitor.  The leader’s role, then, is to instill confidence in the employee—communicate respect for the employee’s goals.  As a relationship of goodwill and trust is established with the employee, the coaching process becomes smooth and effective.

RELATED POST: Top 10 Leadership Coaching Issues

Corrective Action

In contrast to coaching, corrective action is used when an employee is not meeting minimum expectations.  Corrective action is the most effective strategy to use when an employee is performing poorly, and should take a directive (top-down) approach.  Corrective action focuses not only on the problem itself, but also on the natural and environmental consequences of the problem.  The end-goal is for the employee to begin satisfying the minimum expectations in his or her job.  Oftentimes, corrective action includes an expression of the seriousness of the poor performance and the final consequences of not improving.

Coaching and corrective-action tactics create a balance between controlling and empowering.  Where corrective action requires a more controlling approach—best used for very simple tasks or severe consequences for failure—coaching focuses on empowering the individual, or guiding him or her to even higher levels of performance by creating an environment characterized by motivation and collaboration.

JOIN THE WEBINAR: Coaching vs. Corrective Action

Join Charles Rogel and me on Thursday, May 16, as we discuss these two strategies.   We will provide you with real-life examples of the difference you can make when you effectively use both corrective action and genuine coaching.

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A Look Behind the Scenes at the Development of the Leadership Intelligence System

Leadership Intelligence System online survey and reporting tool dashboardIf you had the opportunity to build an online employee survey system from the ground up, what would you include?  That is the question we discuss each Monday when representatives from each DecisionWise team sit down together in our main conference room for a highly anticipated iteration demo of our Leadership Intelligence® System.  This new tool will be used to conduct online employee engagement surveys and also provides interactive online reporting, action-planning, and analytics on the survey results.   The discussion, led by our technology team, covers a range of topics, including user interface, functionality, and general display preferences—to name just a few.    As the system has been developed, we’ve focused on three key priorities: (1) confidentiality, (2) design, and (3) functionality.

Priority 1: Confidentiality

Our discussions about confidentiality generally center around how employees will take the survey and how their responses will be shown on the online reporting tool.  Our project managers voice the need to have a range of flexibility for various client projects.  Some clients prefer to use a generic survey link that allows complete anonymity for all employees.  Other clients match employee responses by email or a unique login code to demographic information to achieve more accurate reporting.

Additionally, some clients require at least 10 responses per category to show results on a report, while others need only 3 (our recommendation is 5).  Acknowledging the variability that lies in this preference, the system has been built to accommodate many thresholds.

Finally, there has to be a way to manage access to the online reporting tool for various levels of leaders in the organization—providing greater detail is provided to senior leaders and less to those on the front-line.  All of these considerations have sometimes created somewhat passionate discussions about what is best-practice and what is best for a particular client.

RELATED POST | Employee Engagement and Economics: Keys to unlocking the value in your business

Priority 2: Functionality

With virtually endless possibilities, our list of potential features keeps growing every week.  For example, a new feature that ranks each manager by engagement score spawned a discussion about additional ways users could rank managers by department and location.  Feedback from beta testing with clients shows a strong need to include multiple years of trending data and benchmarking comparisons (international, national, industry, top-tier, etc.).  Our focus has been to include the features clients need now and continually release new features as they are ready.

RELATED POST | How Managers Can Drive Employee Engagement

Priority 3: Design

We’ve all given our input for how the system should look, but our marketing team has been perhaps the most adamant about the system’s appearance.  From the start, we decided that we need to have complete buy-in from our entire team before finalizing any stylistic elements.  After a number of revisions and demos, the clients that have been invited to beta-test the system have been extremely pleased—and so have we.

With our system’s public-release date just around the corner (June 3), our team is more excited than ever.  What are some of the features you’re most looking forward to?  Or, what are some features your company looks for in an online employee survey and reporting tool?  We’d love to receive your feedback—and we promise we’ll turn it into results.

PRESS RELEASE | Employee Engagement Survey Online Reporting Tool Makes Employee Feedback Impactful

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Two Biggest Barriers to Employee Engagement Initiatives

Two Biggest Barriers to Employee Engagement InitiativesMany organizations conduct employee engagement surveys.  Your organization is likely one of them.  However, a large number of organizations simply conduct the survey, pass the results along to HR and the Executive Team, and shelf the project for the next 364 days—until the time comes to repeat the process.  Unfortunately, few of these organizations experience the potential of this powerful tool.  Few actually create change toward being a more effective (and profitable) organization because of what they find.

Over the last few months, a team of five students from Brigham Young University conducted an interesting research project for DecisionWise.  The team took on the task of understanding why some organizations are able to successfully turn employee feedback into change, while others are not.  They interviewed a number of organizations that conducted an employee engagement survey in the past 12 months in order to determine the success of their action-planning process.  Their research indicated that two barriers to turning employee feedback into change exist: creating buy-in and following-up.

Creating Buy-in

Based on the research, the areas of opportunity for creating buy-in fell into three organizational levels: senior management, managers, and employees.

  • Senior Management—Financial constraint is perhaps the most inhibiting factor for this population.  Executives from one firm reported that though they would have liked to be more thorough in their efforts to follow-up on change initiatives, being financially limited prevented them from achieving all of the firm’s goals.  These financial limitations thereby forced the organization to abandon some goals in favor of others—the firm decided that following-up on survey results would not be as profitable as other goals.
  • Managers—The biggest reported concern for managers is that they don’t understand the vision or importance of implementing changes based on the employee survey.  One firm reported that only 65 percent of managers completed action planning steps and achieved results.  Some of the excuses for poor action-planning included insufficient time and overscheduled employees, though these problems likely represent just the tip of the iceberg.
  • Employees—The major challenge preventing employees from buying into the survey process was a lack of vision.  Employees reported that the company did not provide them with “space (resources, time, impetus, etc.) where an action plan could be created,” effectively inhibiting them from catching the vision.

Following up

According to several firms, a lack of voice, along with a lack of training in the human resources department are primary barriers to following up.  These firms feel that following up effectively cannot take place if the HR department continues as-is. In many cases, human-resources personnel were not prepared to do what was needed to follow up effectively; their efforts weren’t as effective as they could have been because HR lacked necessary skills.

Based on these two issues, how effective is your organization at rolling out employee engagement survey results?    Are these the two biggest areas of challenge for your firm, or have you experienced other challenges?  Share your stories with us.

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How Managers Can Drive Employee Engagement

If you’re wondering why your employees aren’t engaged . . . look at your leaders.

In my work with groups and organizations striving to create an engaged and effective workforce, I have witnessed a common trend:  a team’s engagement rises and falls with the engagement of their leader—and for good reason.

Because leaders and managers are the direct drivers of change within an organization, their teams and direct reports naturally mirror the leaders’ levels of engagement.  Managers are the conduits of information from the top of the organization; they set the tone for how information is received by their team.

More important still, leaders in any organization have to make a crucial choice: they can either be advocates for the company’s vision and goals, or be detractors from the company mission.  A leader’s choice here directly affects his or her direct reports, peers, and supervisors—essentially, a leader’s decisions affect the entire organization.

Of the many different powers that leaders inherently possess, influence power is perhaps the most potent.  While often this influence is productive, it can also be destructive. By leveraging this power to influence others inappropriately, leaders can create resentment, dissatisfaction and, ultimately, disengagement by what and how they communicate.

Recent DecisionWise research conducted with 252 managers and their direct reports in a multinational manufacturing organization provides striking support of the notion that a manager or leader’s own level of engagement has a direct connection with the engagement levels of his or her team.  Consider the following:

  • Fully engaged managers had the highest percentage (38%) of fully engaged employees in the organization
  • Fully disengaged managers had the highest percentage (22%) of fully disengaged individuals on their teams.

Further examination of leadership engagement within this organization shows that regardless of the engagement level of the manager, each team consisted of at least half of the employees fitting into the category of “key contributor.”  These individuals tend to possess basic levels of satisfaction with the job and working conditions, but are not in a state of mind making them either fully engaged or fully disengaged.  In other words, it takes a fully engaged leader to drive full engagement.

In our webinar How Managers Can Drive Employee Engagement I’ll further explore the connection between leader and subordinate engagement.  In addition to these interesting statistics, I’ll show you more evidence that a team’s level of engagement generally has direct correlation to the level of engagement of that team’s manager.  I’ll also answer other crucial questions about a leader’s effect on his or her team’s level of engagement.

 

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The Employee Engagement Sky is Falling!


 

“70 percent of employees are looking for other jobs.”

“2 out of 3 workers are looking for new jobs.”

“Seventy-one percent of all employees are disengaged.”

“70% of employees hate their jobs.”

“Survey: 63% of workers not engaged.”


Ouch.  Yes, these are actual headlines.  For those not receiving these regular alerts in your inboxes, a quick internet search will verify the proliferation of similar warnings.

It makes me want to throw in the towel.  Has two-thirds of my workforce (and yours) really checked out permanently? Quick! Hire additional security.  Change all of our passwords.  Change the locks on the building. Warn your customers!

Not so fast…

Let’s separate fact from predictions of total chaos, corporate anarchy, and Employee Armageddon… at the very least, misinterpretation or bad employee data collection.

The Employee Engagement Facts

Most of these headlines are based on surveys of a few hundred or a couple thousand employees, and most of them do not include more than a few companies.  Even if these results were truly accurate interpretations, we certainly can’t extrapolate these findings to represent all employees in the United States, let alone the world. Let’s take a more comprehensive look, using the DecisionWise 2012 database of over 12 million responses (across 60 countries).

We have found that the numbers above are actually fairly accurate—to a certain point.  We have also found that, on a 5-point scale, only 30 percent of employees are “Fully Engaged” in their jobs.  This means, they scored an average of close to “5” (Strongly Agree) across ALL survey questions (we typically like surveys in the 35-40 question range).

However, another 46 percent score in the “4” or “Agree” range.  These are your “strong and steady” employees.  Just because they didn’t mark “5” on all questions, are they really disengaged?  Hardly.  Yet, statistics like the headlines above lead us to believe that those employees not currently interviewing elsewhere are building arsenal bunkers and making preparations for mutiny.

Now, the reality…

When we look at those employees who are truly disengaged—those that provide average favorable responses between “1” and “2” (Strongly Disagree and Disagree) on a 5-point scale across all survey questions—we find that less than 8 percent of employees fall into the category of being Actively Disengaged.  This leaves another 16 percent as our “undecided vote” (we call them the “opportunity group”).  Hardly the end-of-companies-as-we-know-them scenarios the headlines seem to indicate.

The Employee Migration

So, what about the employee exodus?  Are two-thirds of my employees looking for other jobs?  Probably.

I work very hard to ensure we hire “the best” (as your company probably does, as well).  At DecisionWise, we average over 80 applicants for each person we hire.  I work even harder to ensure we create an environment in which they can choose to be engaged.  They are, truly, the single biggest factor in making this company succeed, and I’ll do all I can to keep them on our team.

But, someday, they will leave.  And I hope to be able to help them do so.  Here’s why…

If my Chief Technology Officer, Dave (who is a rock star technologist and employee), were to get the call from Microsoft’s Steve Ballmer, offering him the top technology spot, would he entertain the idea?  I would at least hope so.  If our project and client services head honcho, Kristin, were to be offered the lead position in solving the North/South Korea situation, would she jump ship?  Of anyone, Kristin could probably make a resolution happen.  So, she’d be feeling pressure from me.

In fact, which of us wouldn’t leave if all conditions—including environment, pay, duties, location, team, title, family impact, schools, company, clients, etc.—were perfect elsewhere.  Who wouldn’t, if it became available, take the spot as the Zamboni machine driver at the local ice rink (okay, maybe that’s just my thing)?

It’s called “growth.”  It’s called “being responsible for my own career.”  Hopefully, my team (and yours) can find that internally.  But the fact is, someday, every employee will move on.

Engaged or disengaged?

Lest I be branded a heretic and booted out of the profession, I need to be clear.  Should we be concerned about employee engagement?  Absolutely!  Is it even more of a concern than in the past?  Without a doubt!  Do we need to focus on and measure it?  Clearly!

So, does this mean the headlines are lies?  Not quite.  It means they are misinterpreted and misapplied.  Apply some common sense to what you’re reading.  Walk out onto the shop floor or past the cubicles in your office.  Do you really think that 2 out of 3 of your employees are doing all they can to get out of there because they hate their jobs?  Not by a long shot.

Give your team the benefit of the doubt.  They “get it.”  They want to succeed, and want to be part of a successful organization.  You may be surprised at what happens.

Posted in Employee Engagement, Employee Engagement Survey, Growth, Management | Tagged | 6 Comments

In the Spotlight: Employee Engagement and Customer Experience

Dutch Bros. Coffee wins J.D. Power & Associates award for highest customer satisfaction ratings in the specialty coffee retailer industry for two years running.

Recently, J.D. Power and Associates recognized various companies for ranking highest in customer satisfaction in their respective industries.  For two years running, one young and growing company has dominated the specialty coffee retailer industry in levels of customer satisfaction: Dutch Bros. Coffee.

For two years, Dutch Bros. Coffee has outshined industry giants (here’s lookin’ at you, Starbucks—we don’t want to pay $7.00 for a latté made by a surly barista anymore).  On its About Us page, Dutch Bros. Coffee relates how it “has always focused more on people than the bottom line, with a desire to transform lives rather than conduct transactions” (emphasis added).  The company has clearly lived up to this claim—some customers’ lives have been so transformed that they’ve opted to hold their wedding ceremony and reception at a Dutch Bros. location.

Clearly, focusing on people is effective—Dutch Bros. has grown from a single push-cart coffee stand to a franchising company with nearly 200 locations in 7 U.S. states in just 21 years.  To the competition, Dutch Bros.’ success is staggering.

“Our customers are the best, man, and so are our bro-istas,” says company co-founder Travis Boersma. “They rip and they rock, and it’s all about the people.”

“Staff friendliness and positive interaction with the customer are keys to achieving high levels of satisfaction,” said Sally Lombardo, director of research operations at J.D. Power and Associates. “A specialty coffee retailer whose staff learns to master these skills may not only achieve high customer satisfaction, but also benefit from positive recommendations, customer loyalty and attachment to the brand.”

As humans, we’re usually friendlier when we’re happier—right?  (Maybe all Dutch Bros. employees are so happy because they have a seemingly unlimited access to delicious, caffeinated, “liquid love.”)

From a human-resources standpoint, happiness and engagement are closely related—ignoring the positive emotional-effects of coffee.  Perhaps, then, the lesson we should all learn from Dutch Bros.’ success is that a people-centric company culture is what drives success.  It probably wouldn’t hurt to give your employees an energy-boost, too.

Our extensive research and experience in the customer-service industry confirms that when companies focus on the people aspect of business they see positive results in profitability, competitive advantage, and growth.  Remember, engaged employees lead to happy customers—and customers ultimately decide which businesses succeed and which businesses fail.  So, what other companies are focusing on transforming the lives of their employees to drive success and break records?  What are some people-centric tactics organizations should employ?

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10 Tips for Using 360-Degree Feedback for Performance Appraisal

The extended version of this article was published in Compensation and Benefits Review. We’re excited to announce that since publication, the article has become the SAGE Publishing most downloaded article of 2009 and 2010. The full version of the article, as published, is available for free download, here.

________________________________________________________________

Originally used almost exclusively for developmental purposes, using 360-degree feedback for purposes other than employee development increased significantly over the past decade. One application increasing in popularity is the use of multirater feedback for performance appraisal. Whether one agrees with it or not, economic reality has caused an increasing number of organizations to begin using 360-degree feedback for appraisal rather than exclusively for development.

A number of organizations have successfully used 360-degree feedback for their performance appraisals and have noted great benefit from this. These organizations appear to share a common process that helps them succeed where others fail. Companies can use the following tips to smooth the way:

1. Recognize the differences in use and purpose of 360s for performance vs. 360s for appraisal: Understanding that scores will differ depending on the purpose will help in determining how best to use and interpret the scores.

2. Communicate the purpose and process: Let employees know the intended purpose before administering the assessments as well as how the results will be used. Communicate the process and hold to it.

3. Use a pilot group: Using a pilot group before rolling the survey out to the full organization allows for refinement of the process and of the instruments used.

4. Do not use the organization’s first 360 process as an appraisal process. Start with using 360s for development: Although some organizations successfully use 360s for appraisal on the first 360 roll-out, most have waited 12-18 months before tying 360s to compensation and administrative action. This allows people to become more comfortable giving feedback before the feedback has consequences.

5. Select the appropriate raters: It is critical to ensure that selected raters have regular interaction with the employee being rated and can provide accurate feedback as to performance.

6. Use small but relevant rater groups: Multirater appraisals involve much of the organization in terms of providing feedback. Limit the number of raters to minimize the time spent on survey completion across the organization.

7. Consider and communicate the rating scale: A 7-point Likert-type scale is generally more effective than a 5-point scale.

8. Keep the survey short: Design a survey that is short enough that it can be completed in 15 minutes or less.

9. Use a customized survey: Multirater assessment for development should include questions geared at behavior (the how), whereas appraisal assessments can focus more on operational performance (the what).

10. Provide a score for each question, not just each section: Rather than providing scores for each survey item, many appraisals solicit one overall score for the category. When this is the case, it is often difficult or an employee to know which area of a category is being addressed. Be specific in scoring.

Maylett, T. M. (2009). 360-Degree Feedback Revisited: The transition from development to appraisal. Compensation and Benefits Review, September/October 41(5), 52-59.

Posted in 360-Degree Appraisal, 360-Degree Feedback Process, 360-Degree Feedback Survey | 4 Comments