Help me develop my strengths

Gallup inquired into the proper balance between a manager focusing on strengths and positive news or weaknesses and negative news in a manager's discussions with subordinates. The research found that a manager who focuses on his employees' strengths essentially inoculates them from being actively disengaged. Those who focus on weaknesses get more polarized results; the strategy rarely works as well as a more positive view, but the manager gets credit for at least "focusing" on the individual. The worst performing managers were those who, by essentially ignoring their team, fail the Eleventh Element. One-fourth of all employees, and nearly two-thirds of those who are actively disengaged, say their boss is asleep at the switch. (See "Strengths: The Next Generation" in the "See Also" area on this page.)

For all the complexity of performance appraisals -- the balanced scorecards, the 360-degree feedback, the self-evaluations and forced grading systems -- the statement that shows the best connection between perceptions of evaluations and actual employee performance is remarkably simple: "In the last six months, someone at work has talked to me about my progress." The statement does not specify that the discussion is an official review, but an appraisal can be one ingredient in creating the requisite feedback. The two are related, but not synonymous.

More important to the employee and to the business is that the employee understands how he is doing, how it is being perceived, and where his work is leading. In some ways, this statement is a long-term complement to the Fourth Element of managing, which focuses on more immediate "recognition and praise." (See "The Fourth Element of Great Managing" in the "See Also" area on this page.)

There is nothing wrong with a formal evaluation process per se, and much to recommend it. Roughly 7 in 10 working Americans say their company has a formal performance review process. The odds of creating high engagement are better, but far from perfect, in businesses with a formal process. The deadlines, the forms, and the threat of Personnel or a boss coming after them appear to force the issue with front-line managers, making many have a progress meeting with employees when none would have taken place otherwise (serendipitous encounters in the men's room notwithstanding). Companies that implement or tighten appraisal procedures typically see an increase in the Eleventh Element from poor to modest levels, but they never achieve high levels on the strength of appraisals alone.

With any formal appraisal cycle that links ratings to pay, which is the case for 54% of U.S. workers, there is an ever-present risk that the system will have enough real or perceived flaws that it actually erodes employee engagement. One study of government workers in a Midwestern U.S. county found that "burnout" was more likely among those employees who believed their new appraisal and merit pay system were unfair. "Employees need to think that how they will be compensated by a system is based on merit, rather than other, extraneous factors," said the study.

Feedback changes perceptions of pay

Four out of five employees whose companies have a formal review system feel it is fair. However, these perceptions are strongly affected by what happens between the appraisals. The proportion who feel the system is fair drops to two-thirds if they feel no one has talked to them about their progress. Conversely, if a manager can maintain a strong, regular discussion of progress, 9 in 10 workers will consider the review system fair.

The consequences on either end of the scale are important. When a manager is regularly checking in with an employee, that employee is more likely to consider herself properly compensated for her work, more likely to plan on staying with the company, and more than twice as likely to recommend the company to others as a great place to work.

When compared with business results, the Eleventh Element turns out to be particularly powerful in driving productivity and safety. Business units in the top quartile on this element realize 10% to 15% higher productivity and 20% to 40% fewer accidents than bottom-quartile business units. Yet less than half of employees in the global database strongly agree that someone talked to them about their progress in the last six months. Even among executives and senior managers, the proportion is only one-half.

On a purely functional level, an employee appraisal is quite simple. Observe an employee's progress over the course of the year, record it carefully on the company-supplied form, inform her at the required interval of the results, and expect her to make the necessary corrections to improve next time around. If only she were a machine, the program would work perfectly. (See "When Engaged Employees Meet Engaged Customers" in the "See Also" area on this page.)

In practice, a good performance evaluation is a form of interpersonal art that requires managerial talent and careful preparation. Whether the employee feels she has a voice in the process is even more crucial than the functional aspects of her participation. A manager must maintain a delicate balance between giving candid, objective feedback and not crushing the employee's spirit and confidence.

The research indicates that positive feedback charges up a worker, but negative comments sap the job of some of its intrinsic motivation. Comments from peers or subordinates must be interpreted carefully -- filtered of grudges, jealousy, and erroneous observations. A good reviewer needs to avoid the natural inclination to give too much weight to the outcome regardless of whether the employee did the right thing to get there or just got lucky.

And, most of all, the discussion must be tailored to the personality, the circumstances, and the potential of the employee. A drive-by performance evaluation just doesn't cut it.

Copyright Ó 2008 The Gallup Organization, Princeton, NJ.  All rights reserved.  Reprinted with permission.  Visit The Gallup Management Journal at http://gmj.gallup.com/

Article from The Gallup Management Journal