How Performance Management Needs to Change Along With Employee Expectations

BY Lisa Jaffe | May 15, 2023

Before the pandemic, performance management seemed to be more straightforward. You had certain expectations of employees and you reacted depending on whether they met them or did not. But with the pandemic came the recognition that employees have lives outside of work. Systems grew more compassionate. Employees felt empowered to quit if they didn’t feel seen and heard. At a From Day One conference in Seattle, a panel of experts talked about how their companies have handled performance management in these turbulent times.

Staff development was one of the biggest areas of change at Microsoft, said Ki Thompson, global leader of diversity and inclusion for executive engagement. Before, they would hire based on needs. Now, they look at overall corporate strategy, which existing staff may have needed skills, and what competencies they need to acquire to move the organization forward. The company is also changing job descriptions to match future goals and “intentionally working to develop that talent for the future,” he said. “We can’t necessarily buy talent now. We have to develop it internally instead. We have 220,000 employees. I’m sure we have the skill set internally to move forward.”

The pandemic brought more compassion to a lot of business policies. At Talkspace, the online mental-health company, leaders strive to find the middle ground between performance and compassion, said Aidan McMahon, the director of employer sales. Sales can be hyper-competitive, she said, and it can be difficult to find that line between business goals and empathy and compassion. McMahon said that knowing that she tends to fall on the empathy side of that spectrum, she makes sure to work the expectations side of management as well.  

You can’t be all one thing and succeed, said Nicole Tanzillo, co-founder and chief operating officer of the leadership-development company Ceresa. There is an internal slogan used in the company that “clear is kind,” she said. “I can’t tell you how many conversations I've been in at the team- member level and at the leader level where both sides are frustrated because it seems there are unspoken expectations. Our employees are amazing and talented, but they aren’t mind readers.”

Being clear about expectations is critical, Tanzillo said. “You don't have to have a full-blown competency matrix and progression plan, but having clarity around the outcomes that we need someone to drive is critical. We have to talk about how we can get there.” Those conversations are not as common as they should be. “If we're all guessing, it’s hard and stressful.”

“We have always had a culture of care at Hearst,” said Maris Krieger, the company’s senior director of talent programs. “It wasn’t ever all about performance and then with the pandemic a sudden shift to empathy. We had it before. But we did become more patient and flexible.” The company didn’t do any RIFs or furloughs or pay cuts during that time. Now the business environment is changing, and people will have to demonstrate their value to the company going forward. But she said that doesn’t mean the company won’t still be patient and flexible.

Nicole Tanzillo, co-founder and chief operating officer of the leadership-development company Ceresa (Photos by From Day One)

Changing performance management to be more compassionate doesn’t mean there aren’t clear measurements of success. Julie Johns, who is in charge of talent acquisition for the Bill & Melinda Gates Foundation, said she thinks about performance as the what and the how. “What is your role, what are you trying to achieve, and what are the outcomes you are striving for? I want to know what ‘good’ looks like to them and what success means to them. Where are they making progress and where aren’t they? I want to know too, how they show up and whether and how they collaborate. Do they bring people along and bring people in? When you aren’t talking about hard numbers, like sales, it isn’t black and white. But you do have to have clear expectations. And I think that moving away from having these conversations just once a year is a good idea. The more conversations you have, the fewer surprises can occur.”

The criteria on which you base measurements should change over time, said Thompson. “I used to have development plan conversations with people and one of the top competencies that would come up was the balcony and the dance floor.” That is, about micromanaging what is happening on the dance floor, or looking at something from the perspective of the balcony. “When leaders are trying to develop this competency, it is easy to say, well if a worker is remote, I can’t be micromanaging. But if you are still checking in and emailing them constantly, you are.”

If you can’t be in a room full of people, but instead have to influence them remotely, the results might be different, and your criteria for success should reflect that, he added. “Adjust the performance criteria to meet the world we are in today.”

One misstep Tanzillo said she made early on was in trying to develop balance between being more directive and telling before asking, versus someone who connects with someone first, understands their world, and then works with them to create expectations. Questions she might ask now: How are you doing? How do you think things are going for you here? How can we help you bridge any gaps? These questions can help create a connection that leads to very different conversations than walking in and telling someone that you’ve noticed something about their behavior or performance. “Almost certainly, they are aware of problems and probably feel worse about it than you. Creating a connection makes it a different conversation.”

You hire people because they are smart and good at what they do, said Johns. “When things aren’t going well, call it out early and often. Don't wait for it to pile up into something bigger.”

If there is one truth about the last three years, it is that we now understand the impact of mental health on work and workers. Krieger said at Hearst, they understood the additional stressors that were put on employees, and they added more benefits related to childcare and well-being. “What we didn’t do well was figure out how to make these perks work in the new world of work. We had all these wonderful well-being webinars for people, but they had no time to attend them. That was really annoying. We tried, but we still have work to do.”

Mental health is always a factor, even when we aren’t in the middle of a pandemic, said McMahon. “When you have a team member who may have performance not going in the direction you want, don’t assume it’s because they don’t care or aren’t working hard. Often it’s something deeper.” 

You can have a huge impact on them just by having a conversation, she said. Ask if there is anything you can do to support them. Be ready to provide them with resources. 

McMahon also recommends modeling the words and behavior of self-care. “When I need a mental health day, I tell them I am taking a mental health day. They respect that and support me. In turn, they will also ask for mental health days. I encourage people to do what they need to take care of themselves. For me, it is often taking a walk to clear my head. I do that and I come back like a completely new person.”

Lisa Jaffe is a freelance writer who lives in Seattle with her son and a very needy rescue dog named Ellie Bee. She enjoys reading, long walks on the beach, and trying to get better at ceramics.

 

RELATED STORIES

Embracing Change by Evolving Employee Mindsets and Skill Sets

Technical innovation is continuously streamlining processes and departments, from customer service to daily operations and paperwork, leading to the creation of new roles and a transformation of the modern workplace. As a result, this opens up new opportunities for HR leaders to develop holistic talent management programs and employee development initiatives.At From Day One’s Denver conference, Judith Almendra, group vice president of people and culture at TTEC, shared her perspective on incorporating holistic change management solutions to help employees adjust to new roles and continue to professionally evolve amid these changes.“I think it is very important for us to have to make sure that nobody’s filling in the blank with thoughts that may be counterproductive to what we’re trying to achieve, which is truly driving the business forward with our people-centric mindset,” Almendra said to moderator Elizabeth Hernandez, reporter for the Denver Post.TTEC is an international customer experience company blending human and AI interactions, providing organizations with effective customer service. The technological advancements help deliver effective solutions that can reduce the employee workload.With a reduced workload, employees then have opportunities to build other skills for other roles and achieve new career goals. For example, in 2020 the organization launched its Rewire initiative, where leaders meet and restrategize processes, people programs, and more for holistic business outcomes, says Almendra.TTEC also launched Rewiring for Success, an effective change management solution where employees can ask questions about their career prospects and get information from company leaders.“Change can drive a lot of anxiety in a lot of us, right? It can be intimidating,” Almendra said. “What does it mean for my job? Is my job at risk? [These] were some of the questions that we were getting early on that we were trying to make sure we could address in a timely and very proactive manner.”New Skills, New OpportunitiesAfter evaluating their career trajectories, employees at TTEC move forward by reinventing their skill sets or mastering new ones. Their program called I Aspire offers employees a space to share their career goals and aspirations and have TTEC facilitate their new skill development. By engaging with leaders who act as mentors, employees create new career trajectory goals and advance into new roles within the organization.Almendra recalled her career trajectory with appreciation. She is the first generation of her family to receive an MBA, and was initially an accountant. However, she faced challenges finding finance roles. Almendra needed to adapt to change and eventually joined TTEC, where she was encouraged into different roles, like communications and talent management, until landing her current role in people and culture.Judith Almendra of TTEC spoke with Elizabeth Hernandez of the Denver PostHR employees ultimately benefit from acquiring new skill sets as the modern workforce continues to transform. Taking opportunities to learn new skills and working with a mentor will open new doors, says Almendra. “I think continuous learning is so important in today’s environment, to stay relevant, to stay competitive, to stay fulfilled. We just cannot afford not to learn.” Achieving a Unified VisionHow can companies align on a shared vision of success amid workplace and culture shift? And how can leaders foster employee growth and drive expansion while staying focused on business goals? asked Hernandez. On their talent platform, TTEC Talent, leaders record their goals onto the platform and refer to Rewire to confirm they align with the company's goals. Continuing to adopt a more organic approach to business strategy, leaders from each group are encouraged to meet, define their top priorities, and list three things they can do to achieve positive business outcomes, says Almendra.With fewer rigid priorities or fixed meet-up schedules, and by leveraging a range of engaging programs and initiatives, leaders gain greater flexibility, tools, and support to achieve personal goals while driving positive business outcomes. These shifts reflect the evolution of HR, the adoption of a more adaptable employee mindset, and the expansion of skill sets to shape and thrive in new, dynamic roles.Stephanie Reed is a freelance news, marketing, and content writer. Much of her work features small business owners throughout diverse industries. She is passionate about promoting small, ethical, and eco-conscious businesses.

Stephanie Reed | November 18, 2024

Building a Workplace Culture That Prioritizes Well-Being

When it comes to well-being in the workplace, one can hardly generalize, as every generation has its demands. Boomers are gearing up for retirement, Gen X is sandwiched between childcare and eldercare, Millennials are starting their families and dealing with a housing crisis, while Gen Z is fresh out of school.“It’s not a one-size-fits-all, so if you don’t know what the population is looking for, you might be investing in the wrong places,” said panelist Stefanie Christmas, global head of diversity, equity and inclusion at Inizio, during From Day One’s Philadelphia conference.Still, there are some industry-wide areas that are demographics-agnostic. In 2023, The American Psychiatric Association found that the majority of the employers think the work environment is healthier than it actually is. More than 50% of workers strongly (21%) or somewhat (34%) agreed that their employer thinks their workplace environment is a lot mentally healthier than it actually is, and 43% reported worrying that if they told their employer about a mental health condition, it would have a negative impact on them in the workplace, reads the report.Well-being does not just mean wellness. “We’re looking at well being in the less traditional way: we’re looking at it through the lens of social, emotional, and financial wellbeing,” said Magdalena Dexter, SVP of communication and HR at manufacturing company Saint Gobain, which operates in 76 countries and has a workforce of 76,000 in North America alone. “Think about well-being holistically. It [encompasses] physical, financial, career growth,” Christmas said.When thinking about well-being and how to build it within an organization, the first question Tyler Zalucki, client executive at Marsh McLennan Agency asks is: “‘What is your feedback loop?’ and ‘How are you capturing the sentiment of employees and colleagues through a well-being lens?’”The panelist spoke in a discussion titled, "Does Your Company Genuinely Care About Well-Being? How to Show It Through Your Culture," moderated by Lizzy McLellan Ravitch, Business Coverage Editor, the Philadelphia Inquirer“In our organization, the respective manager will fill out a survey and speak with individuals to capture their sentiment and aggregate it,” he said. Then, during their town hall, the CFO and HR Director offer solutions to what was shared. “This feedback led to changes like implementing paternity leave, increasing contributions to the 401(k), and making December 24th a full day off,” he said. “It reinforces the sense that ‘my voice matters,’ because if feedback goes into the ether, employees feel unheard.”Getting Specific With NeedsCora Claus, VP of HR at Burlington Stores, emphasized the importance of understanding the employee population: who are they? What do they need? What do they want? “I work for a retailer, largely female based, and for a long time we had a lot of them going on leave of absence, starting their families, and they’re not getting paid but a minimum wage,” she said. “We now are implementing policies: as you’re designing the policies, who are you writing them for?”Getting to know the workforce also means helping to clear away any misconceptions. Scott Thompson is the CEO of Tuition.io, which helps employees with financial education. The total amount of student-loan debt is close to $1.8 trillion dollars, and you might be surprised at who the most affected group is. “The fastest growing segment for student loans is 55 and up,” said Thompson. “That’s parents taking on debt for their kids.”In order to thrive at work, people need to feel included. “As we know, DEI is under intense scrutiny, but at its core, it’s about inclusion—making sure people can bring themselves to work in a way that feels comfortable,” said Christmas. “A lot of people say, ‘Bring your whole self to work,’ but many employees feel more comfortable bringing just 55% of themselves. How do we support that?” Christmas emphasizes the idea that for DEI work to work, “it has to be seen as everyone’s responsibility. This includes sponsoring events and encouraging leaders to show up. One impactful practice is having senior leaders participate in quarterly calls, asking questions, and engaging in the conversation.”Ultimately, a company can have the best programs, but if the leaders don’t buy into them, don’t lead with that and implement them, you really don’t have a culture of well-being. “You can put the best parental leave in place, but if a senior leader can complain that he has 3 people out, it’s going to send waves through the organization about how we truly feel about it,” said Dexter. “It’s not just about having the program, it’s about talking positively about it, showing examples of how important it is to take advantage of it.”Universal NeedsStudent loan debt has only become more challenging for borrowers, partly due to all the noise in the media. Efforts to improve the situation have unintentionally made it worse, as some employers diminished the importance of loan support, assuming it would be resolved under the current administration. “That hasn’t happened—and likely won’t,” said Thompson.“When we break down student loan debt by age segments, we see the impact. For example, a recent college graduate with $40,000 in debt faces a monthly payment of about $500 after taxes,” he continued. “At 25, I would not have been able to make that payment. And it doesn’t get easier over time; most people aim to pay off their loans in 10 years, but it often turns into a 21-year commitment due to the financial missteps that come with starting a career,” said Thompson.And while he is not suggesting that all companies need to contribute to loan payments—though that would be nice and certainly helpful, “offering assistance in understanding options and finding pathways to manage debt is a big win, with spectacular retention benefits,” he said. “It’s about meeting employees where they are and helping them move forward.”In many companies, the adage seems to consist of teams being told to do more with less, and that might be at odds with well-being. “When I think about my own organization, when I think about doing more with less, we have an AI tool that allows you access to compliance resources and will also write emails,” said Zalucki. Other resources include open office hours to ask questions and then do modules exactly on what one is working on that day. “Do the things you like and enjoy and iterate admin tasks,” he said. “At the end of the day, we want to spend more time with our family.”A similar mindset also steers employers and employees towards an 80/20 perspective. “For so long, our organization has been focusing on being perfect,” said Claus, noting that they changed towards 80/20. “Are we comfortable with 80? It’s that permission to be directionally correct so that we don’t spend too much time getting to false perfection.”This also requires leaders to understand the cycle of an organization. If Q4 is the busiest time of the year, for example, a slower Q1 should allow employees to take a break. “Don’t let them sprint through that, let them have moments to breathe,” said Dexter. “What can we deprioritize? What can we take off?”“It’s about how you’re showing up but also how we empower our team to have conversations that need to be had,” said Claus. She speaks about how frustration can pile up because we don’t have the courage to speak or there’s no safe space to do so or there’s no empathetic leader. They began coaching associates to handle conversations independently, teaching them to engage and leaders to respond with positive intent.Angelica Frey is a writer and a translator based in Boston and Milan.

Angelica Frey | November 06, 2024

The Backlash Against DEI: How Perceptions Are Being Driven by Fear and Sensationalism, Not Facts

DEI has faced intense backlash, often turned into a partisan dog whistle by those aiming to politicize its goals. But is this pushback grounded in reality? In truth, the vast majority of companies remain firmly committed to DEI, both in the U.S. and internationally. Most Americans approve of DEI initiatives, including 78% of Black workers from a Pew Research poll from 2023.Dr. Stephanie J. Creary, Assistant Professor of Management at the Wharton School, University of Pennsylvania, says the backlash against DEI doesn’t tell an accurate story. “What we found is a story that is not being shared in the media or by politicians, and that is that of all the industries that exist right now, finance is leading the charge. Tech–its commitment to any kind of DEI, including towards black employees or black communities [has] continued to increase–in spite of the external environment. And Pharma is in the middle.”Creary spoke with Earl Hopkins, arts and culture reporter for the The Philadelphia Inquirer, during a fireside chat at From Day One’s Philadelphia conference. They discussed the false narrative around DEI and its future in the workplace.Recently, Creary spoke at a conference of bankers, a group that Hopkins identified as being stereotypically not diverse. Creary was worried about what kind of crowd she was going to have and what the reception was going to be like. “What does banking look like? It’s predominantly white and predominantly male,” Creary said. But what she found was encouraging and inspiring.“I was inspired by those institutions that were continuing to lean into the evidence, either internally from their own organization or externally from academia. That suggests that it does make good business sense. There were a lot of people in the room who were saying it’s hard that the topic has become so politicized when that’s not why they had invested all these resources into [DEI].”Earl Hopkins of the Philadelphia Inquirer interviewed Dr. Stephanie J. Creary, of the Wharton School Hopkins pointed to the politicization of DEI and how recently it’s faced a lot of legal and political backlash. “Which has prompted many companies to retreat on their initial commitments, or at least...keep their head down amid the storm,” Hopkins said. For example, Ford Motor backed out of its DEI initiatives this past summer, no longer participating “in the Human Rights Campaign’s Corporate Equality Index.”The headlines can be misleading and frustrating. “I lead with evidence, and every day I get some person in HR or DEI calling me saying, ‘Can you come speak at our organization and help us?’” There's a contradiction between the headlines and what she sees in her inbox.Right now, she and her team are “combing DEI reports from 2019-2023 (2024 data won’t be available until next year)” in Fortune 100 companies in three industries: financial services, pharma, and tech, which all show DEI efforts as stable or increasing.“Now that’s not to say that a few companies are reducing their commitments, changing practices, but it’s not a trend. It’s not an empirical trend in the way that is being suggested.” Still, the reported decline in DEI in the media, she adds, isn’t accurate to reality and may be more related to how news is covered and how we consume it.“I think what we’re suffering from is people who are covering these stories, the people consuming them, are very new. They’re novices. And I can say this as an educator, when people are new and they’re learning something the first time, they tend to make concrete generalizations about things that are complex.”She points to our innate tendency to “reduce the complexity of the world around us,” she said. “There’s an over simplistic reporting and consumption and interpretation of something that is much more multifaceted and dynamic and nuanced.” Basically, we’re not hearing enough from experts in the field. “And certainly political leaders are not experts on this conversation.”Looking to the future, does Creary think DEI is going in the right direction? She says she’s hopeful but skeptical.“So the challenge with the field of DEI practices [is] that there's not always evidence being used to justify the problem that needs to be addressed. And, there’s not always evidence showing that we should continue down this path with these practices, because they’re working.”There’s hope, she added, in organizations that are “leaning” on the data to identify the problem that needs addressing but also looking to see if the interventions they put in place are working.However, having access to the right data is still a problem, and Hopkins pointed out a wide discrepancy between quantitative data and qualitative data. “We’re beginning to understand what's happening with people who are in the minority. Oftentimes that doesn’t show up in the quantitative data because they’re underrepresented,” Hopkins said.Creary confirmed this in a recent analysis conducted with a media company. In her team’s analysis, they looked at the performance reviews between Black and white employees, where the performance reviews were “way more telling than” the quantitative data. “The quantitative data would say that Black employees don't perform as well as the qualitative data. But when you look at the qualitative data, it's very clear that the managers are not all using the same metrics to assess performance. And sometimes the Black employees are getting measured on things like, do they turn their cameras on during meetings and not on things that are actually agreed upon performance indicators.”“The qualitative data can often tell a much richer story about what's happening and why something is happening than the quantitative data can,” Creary said.Matthew Koehler is a freelance journalist and licensed real estate agent based in Washington, DC. His work has appeared in Greater Greater Washington, The Washington Post, The Southwester, and Walking Cinema, among others.

Matthew Koehler | November 06, 2024