Overhauling the performance review process and focusing on a new approach to drive performance through people have been important keys to the growth and success of Vocus Communications, according to its head of HR.
This new process has also saved on average, two hours per person per month, which equates to $2.6 million over the last financial year for Vocus Communications’ 4000 odd staff.
When its head of human resources & internal communications, Denise Hanlon, joined the company close to two years ago, she was surprised to find a “fairly cumbersome, bureaucratic” performance review process – which she said was unusual in such an agile, forward-thinking technology company that was only 7 years old.
“Nobody seemed to like the process – staff felt categorised by a system that put them in boxes and didn’t encourage them to do their best work,” she said.
“Additionally there was a huge productivity drain on resources to implement the process, especially on managers.”
Hanlon set about completely overhauling the performance review system to create something that motivated employees and was a more efficient use of time and resources.
The new approach is strengths-based, with feedback at its heart, and instead of focussing on what people are not good at, the focus has shifted to what they are great at already and how they can keep growing these skills.
“Now that we’ve done away with a biannual performance review and placed the emphasis on conversation and constant feedback, there is a much stronger feeling from staff that their development is important to us, which fuels motivation and productivity,” said Hanlon.
“At the time we ‘blew up’ our performance review and management process, we started trialling a new program called Officevibe,” said Hanlon, who explained that this platform helps track staff engagement and seek feedback in real time.
“Feedback from managers around the decision to remove reviews was extremely positive with some going as far as to suggest it was ‘transformational’”
This tool continues to show that feedback and relationships with managers are the strongest areas, despite having no formal performance review process.
“Additionally, feedback from managers around the decision to remove reviews was extremely positive with some going as far as to suggest it was ‘transformational’,” said Hanlon.
For both HR and employees, she said the new approach has also set the tone for the way other people-related processes are approached.
“We don’t believe in pigeon-holing staff in one role, preferring to find ways for them to play to their strengths to get the best possible results,” she said.
“We’re taking a ‘choose your own adventure’ approach where our employees are empowered to make decisions about their own future and to think creatively about their career paths.”
For other HR professionals looking to reinvigorate their performance management strategy and process, Hanlon said to be bold – but don’t pretend to have all the answers.
“No one really knows how a new process will work out, so the only way is to have a crack (one of Vocus’ values) and evolve as you go,” she said.
“Another of our values is ‘no muppets’; we know all our staff are smart and motivated, so our review process should reflect our trust in them.”
Image source: iStock
