Performance Assessment
Click here to view and download the Annual Compensation + Benefits Worksheet.
As we round the halfway mark of 2020, we are wrapping up with the final step of Creating and Implementing a 1-1 Coaching Process at your organization.
We began in March with Step 1: Preparation, followed by Step 2: Orientation and most recently in May, Step 3: Implementation.
The 4th Step, Performance Assessment, is an opportunity for the 1-1 Monthly Coaching Process to be coordinated and administered in conjunction with your organization’s existing annual performance assessment process.
We recognize most organizations have ingrained the annual evaluation process into their culture and annual compensation process, creating an expectation of an annual compensation increase. Most annual performance assessment processes include two characteristics: 1) a numerical metric ranking of a team member and 2) a predefined percent of pay increase – usually 3-5%.
We believe this system can effectively be replaced by creating and implementing a quarterly goal setting process, aligned with coaching/development goals as well as performance/results goals. Permanent increases to base compensation can be awarded when a role and/or responsibility is expanded and/or an educational or professional milestone is achieved.
During the annual Performance Assessment process we’ve found it is helpful to provide each Team Member with a comprehensive review detailing the value of the compensation they receive.
With that in mind, we've outlined The ABC's of Compensation as a framework for developing the Annual Compensation + Benefits Worksheet. We’ve found this tool extremely helpful in providing a leader manager with a platform to reset and re-frame the compensation discussion with Team Members and orient the focus to development and performance.
In Managing From The Inside Out, our training program, we define compensation as the following equation:
A. The VALUE a Team Member brings determining their BASE compensation (Education + Experience + Expertise)
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B. The CONTRIBUTION a Team Member makes to the Organization which results in ADDITIONAL compensation (Daily, Weekly, Monthly, Quarterly, Annual Goal Achievement)
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C. The BENEFITS a Team Member receives in alignment with all Team Members and customized to their role (Health, Dental, Vision, 401k, Pension, Profit Sharing, Education, etc.)
Potential increases in a Team Members compensation can then be tied to one of the three areas above by asking questions such as:
Have they completed a training, program or class which enhances the VALUE they bring to their role?
Have they expanded their responsibilities or stepped into a leadership position where their CONTRIBUTION has increased long term in their role? (This could be a trigger for a permanent increase in compensation)
Have they accepted or requested assignment for a special project where their CONTRIBUTION has increased short term results?
Have they enrolled in a training or learning opportunity to bring value to their role and the organization following their completion? (This training is a monetary BENEFIT to the Team Member)
Click here to view and download the Annual Compensation + Benefits Worksheet where a Team Member’s Compensation can be organized into various categories.
As we wrap up this miniseries on Coaching, we leave you with this…
“If you want a great team, you have to bring out the best in each player!”
This includes ensuring they are receiving the appropriate coaching, performance management and compensation for the value they bring and the contribution they make.
Next month, we look forward to sharing self-awareness tools we utilize with Teams and Organizations.
We hope you continue to impact on during this season and wish you and your Team the very best always.
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