Performance Measurement for any Application: Benefits and Concerns

a-performance-manager-going-through-the-performances-of-employees

Performance Management for any Application: Benefits and Concerns

Suggested Pre-Reading

Overview of Performance Management Process for any Application

Sections of This Topic Include

4 Key Benefits of Performance management
15 Other Benefits
Concerns

4 Key Benefits of Performance Management

1. PM focuses on results, rather than behaviors and activities
A common misconception among supervisors is that behaviors and activities are the same as results. Thus, an employee may appear extremely busy, but not be contributing at all toward the goals of the organization. An example is the employee who manually reviews completion of every form and procedure, rather than supporting automation of the review. The supervisor may conclude the employee is very committed to the organization and works very hard, thus, deserving a very high performance rating.

2. Aligns organizational activities and processes to the goals of the organization
PM identifies organizational goals, results needed to achieve those goals, measures of effectiveness or efficiency (outcomes) toward the goals, and means (drivers) to achieve the goals. This chain of measurements is examined to ensure alignment with overall results of the organization.

3. Cultivates a system-wide, long-term view of the organization.

Richard A. Swanson, in Performance Improvement Theory and Practice (Advances in Developing Human Resources, 1, 1999), explains an effective performance improvement process must follow a systems-based approach while looking at outcomes and drivers. Otherwise, the effort produces a flawed picture. For example, laying off people will likely produce short-term profits. However, the organization may eventually experience reduced productivity, resulting in long-term profit loss.

4. Produces meaningful measurements
These measurements have a wide variety of useful applications. They are useful in benchmarking, or setting standards for comparison with best practices in other organizations. They provide consistent basis for comparison during internal change efforts. They indicate results during improvement efforts, such as employee training, management development, quality programs, etc. They help ensure equitable and fair treatment to employees based on performance.

15 Other Benefits of Performance Management

Performance Management (PM):
1. Helps you think about what results you really want. You’re forced to be accountable, to “put a stake in the ground”.

2. Depersonalizes issues. Supervisor’s focus on behaviors and results, rather than personalities.

3. Validates expectations. In today’s age of high expectations when organizations are striving to transform themselves and society, having measurable results can verify whether grand visions are realistic or not.

4. Helps ensure equitable treatment of employees because appraisals are based on results.

5. Optimizes operations in the organization because goals and results are more closely aligned.

6. Cultivates a change in perspective from activities to results.

7. Performance reviews are focused on contributions to the organizational goals, e.g., forms include the question “What organizational goal were contributed to and how?”

8. Supports ongoing communication, feedback and dialogue about organizational goals. Also supports communication between employee and supervisor.

9. Performance is seen as an ongoing process, rather than a one-time, snap-shot event.

10. Provokes focus on the needs of customers, whether internal or external.

11. Cultivates a systems perspective, that is, focus on the relationships and exchanges between subsystems, e.g., departments, processes, teams and employees. Accordingly, personnel focus on patterns and themes in the organization, rather than specific events.

12. Continuing focus and analysis on results helps to correct several myths, e.g., “learning means results”, “job satisfaction produces productivity”, etc.

13. Produces specificity in commitments and resources.

14. Provides specificity for comparisons, direction and planning.

15. Redirects attention from bottom-up approaches (e.g., doing job descriptions, performance reviews, etc., first and then “rolling up” results to the top of the organization) to top-down approaches (e.g., ensuring all subsystem goals and results are aligned first with the organization’s overall goals and results).

Concerns About Performance Management

Typical concerns expressed about performance management are that it seems extraordinarily difficult and often unreliable to measure phenomena as complex as performance. People point out that today’s organizations are rapidly changing, thus results and measures quickly become obsolete. They add that translating human desires and interactions to measurements is impersonal and even heavy handed.

Learn More in the Library’s Blogs Related to Performance Management

In addition to the articles on this current page, see the following blogs which have posts related to Performance Management. Scan down the blog’s page to see various posts. Also see the section “Recent Blog Posts” in the sidebar of the blog or click on “next” near the bottom of a post in the blog.

Also consider

For the Category of Performance Management:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

January 18, 2022April 30, 2022

Performance Management for any Application: Performance Appraisal Phase

PM-Conducting-observations-and-measurements-to-track-performance

Performance Management for any Application: Performance Appraisal Phase

© Copyright Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Adapted
from the Field Guide to Leadership and Supervision in Business and
Field Guide to Leadership and Supervision for Nonprofit Staff.

Strongly Suggested Pre-Reading

Performance
Management: Traditional and Progressive Approaches
Overview
of Performance Management Process for any Application
Performance
Planning Phase

Approaches to Doing a Performance Appraisal

Remember that information in this section is generic to performance management,
that is, the information generally applies to any domain of performance management,
including an organization, an internal and recurring process, a team or an employee.

The performance appraisal phase generally occurs after the Performance
Planning phase. Keep in mind that the three phases (performance planning,
performance appraisal and development planning) are all cyclical and highly integrated in nature. As in our description of performance planning, we will continue with
our example of the machine operator. So at this point in our example, a performance
plan has already been developed for the operator.

9. Conduct ongoing observations and measurements to track performance
The operator’s supervisor would observe the number of high-quality prints, including
to share feedback with the operator’s internal customer, the Director of the
Catalog Department.

In a progressive
approach, this would also occur, as the sharing of feedback with customers
is extremely important.

10. Exchange ongoing feedback about performance
Feedback is information relevant to how well results are being achieved. Useful
feedback is timely, feasible and understood. Ideally, feedback address key activities
to improve or reinforce performance. Usually, the larger the number of sources
giving feedback, the more accurate is the depiction of events. In our example,
the employee, supervisor and Director of the Catalog Department should continue
to share impressions of how well results are being achieved. Any ideas to improve
or support performance should be implemented as appropriate. This ongoing
feedback is often one of the most important aspects of performance management.

In a progressive
approach, this would also occur, as the sharing of feedback with the domain
(in our example, the operator) is extremely important.

11. Conduct a performance appraisal (sometimes called performance review)
A performance appraisal (or review) includes documentation of
expected results, standards of performance, progress toward achieving of results,
how well they were achieved, examples indicating achievement, suggestions to
improve performance and how those suggestions can be followed. If the above
activities in the performance management process were followed, the performance
appraisal is usually quite straightforward to carry out. In our example, the
appraisal should include input from the employee, supervisor and Director of
the Catalog Department. The performance appraisal should be carried out at regular
intervals as performance tracking is underway.

In a progressive
approach, performance review documentation and meetings would occur more
than once a year in order to remain relevant to any changes in the organization’s,
the customers and/or the operator’s goals. The review would not include any
surprises for the operator, as any concerns about performance would have been
addressed as soon as they occurred.

12. If performance meets desired performance standards, reward for performance
In our example, the machine operator may be due some form of reward, that is,
recognition or compensation, for example, a letter of recognition, promotion
or letter of commendation.

In a progressive
approach, arrangements to tie compensation to performance might be agreed
upon between the supervisor and employee. (See The
Pros and Cons of Tying Compensation to Performance Reviews.)

Next, see
Development
Planning

Learn More in the Library’s Blogs Related to Performance Appraisals for Employees,
Teams, Processes and Organizations

In addition to the articles on this current page, see the following blogs which
have posts related to Appraisals for Employees, Teams, Processes and Organizations.
Scan down the blog’s page to see various posts. Also see the section “Recent
Blog Posts” in the sidebar of the blog or click on “next” near
the bottom of a post in the blog.

Library’s
Human Resources Blog
Library’s
Leadership Blog
Library’s
Supervision Blog

For the Category of Performance Management:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

Talent Management

Sections of This Topic Include

What is Talent Management?
Do We Need Innovation in Talent Management?
General Overviews of Talent Management
Major Functions of Talent Management

Also consider
Related Library Topics

Learn More in the Library’s Blogs Related to Human Resources and Talent Management

In addition to the articles on this current page, also see the following blogs that have posts related to Human Resources and Talent Management. Scan down the blog’s page to see various posts. Also see the section “Recent Blog Posts” in the sidebar of the blog or click on “next” near the bottom of a post in the blog. The blog also links to numerous free related resources.

What is Talent Management?

The phrase “talent management” is fairly new and usually refers to the activities to attract, develop and retain employees. Some people and organizations use the phrase to refer especially to talented and/or high-potential employees.

The phrase often is used interchangeably with the field of Human Resource Management — although as the field of talent management continues to mature, it’s very likely there will be an increasing number of people who will strongly disagree about the interchange of these fields. At least for now, this Free Management Library considers the topic of Talent Management to be similar to Human Resources
Management. Thus, the various aspects and subtopics of Talent Management are those listed in the topic of Human Resources and Talent Management. The links immediately below provide more overviews of talent management.

Do We Need Innovation in Talent Management?

A recent survey conducted by SHRM indicated that human capital is one of the biggest challenges in the next ten years for business. Recruiting and retaining top talent should already be a number one priority of your talent management strategy; however, the challenge will be in adjusting the strategy to accommodate changes in the workforce.

The real challenge for the HR professionals and business will be in developing innovative strategy to meet the new normal of the business world. Unfortunately, in HR innovation seems to be a missing skill. And questioning long held beliefs in talent management seems to be an even less common skill or practice found in today’s HR departments.

As a profession, we tend to get wrapped up in the compliance piece of the job and forget about what it means to recruit and retain talent. In the most recent issue of SHRM magazine, there is a great article on the biggest missteps in performance management. The information is solid and the article is filled with
great advice. It lists information that seems to be often forgotten by managers in the workplace le reminding HR folks of all the little things managers do that drive us crazy. By being written from the vain of legal compliance, it reinforces that our job is so filled with compliance that we might not even realize that we have a greater responsibility in our roles as the drivers of talent management.

We owe it to our organizations to focus on innovative and creative strategies that will attract and retain the talent needed to meet the needs of the organization. We have to start by questioning everything we do in our current strategy and see if it actually yields the results that you have been taught that it does.
And for all of you in HR who believe our mission is about the people, you should realize that by taking care of the people in your strategy, you will retain them and that is the win-win we always strive for in this profession.

If you want a place to start, look outside of the HR department. Start with the talent.

General Overviews of Talent Management

Talent Management (Wikipedia)
7 Talent Management Practices to Help You Survive a Downturn
How and Why we Must Differentiate Talent
Talent & The “Misunderstanding Maslow” Factor
Strategic Talent Management
10 Talent Management Lessons Every Company Should Embrace
Retaining Talent
A New Talent Management Framework
An Eye for Talent
Talent Management Revisited: Where Are We Now?
Are Your Most Talented People Losing Their Minds?
Three Ways to Recognize a Talent Magnet

Major Functions of Talent Management

The phrase “Talent Management” traditionally refers to the activities of getting, developing and retaining the best employees. However, the phrase is often used interchangeably with “Human Resources.” The following links are to major sections about each of the standard functions associated with talent management.

Getting the Best Employees

Developing Employees at All Levels

Retaining High-Performing Employees

Also consider

For the Category of Human Resources Management (and Talent
Management):

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

Human Resources Management

Nonprofit-Specific Human Resource Management

Written by Carter McNamara, MBA, PhD of Authenticity Consulting, LLC

Introduction

There’s a common misperception that human resource management in nonprofits is very different from human resource management in for-profits. Actually, the activities are very similar in both types of organizations, except that nonprofits often include human resources (staff members) who are volunteers– staff members who are not paid compensation.

Note that Board members of nonprofits are volunteers, but usually are not considered to be staff members. Those who know a great deal about nonprofits also know that the activities to effectively manage paid staff in nonprofits are very similar to those required to effectively manage volunteers in nonprofits, except for the topic of paying volunteers.

Understand Differences Between Nonprofit and For-Profit Organizations

Human Resources – Read This Topic First?

Because of the similarity between managing human resources in for-profits and nonprofits, the reader is advised to first review information in the topic:

Human Resources

Nonprofit-Specific Human Resource Topics

Listing of nonprofit resources from Connecticut Association of Nonprofits
Research on the Nonprofit Workforce: Here’s a Brief Overview
HR Toolkit for the Voluntary & Non-profit Sector
Top 10 Tips for Running a Good Nonprofit Hiring Process

Assessing the Quality of Your Practices in Nonprofit Human Resource Management

The following link is to a series of questions that you can consider to assess your practices in nonprofit management. The link is to an organizational assessment tool for nonprofits, including paid and non-paid (volunteer) staffing.

Audit and Evaluation of Nonprofit Human Resource Management (including Volunteers)

Also consider
Related Library Topics

Learn More in the Library’s Blogs Related to Human Resources and Talent Management

For the Category of Human Resources:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

All About Human Resources and Talent Management

talent management and employees conferencing

All About Human Resources and Talent Management

Guidelines for staffing analysis, recruiting, screening, hiring and developing human resources are included in the books Field Guide to Leadership and Supervision in Business and Field Guide to Leadership and Supervision for Nonprofit Staff.

Sections of This Topic Include

Learn More in the Library’s Blogs Related to Human Resources and Talent Management

Introduction

Human Resources Applies to Any Size of Organization

This Topic Applies to Any Size of Organization

All organizations have people — they have human resources. Regardless of the size of an organization or the extent of its resources, the organization survives — and thrives — because of the capabilities and performance of its people. The activities to maximize those capabilities and that performance are necessary regardless of whether the organization refers to them as Human Resource Management, Human Resource Development or Human Resources — or has no formal name for those activities at all.

Those activities are the responsibility of all people in the organization. Thus, members of organizations, regardless of size or resources, will benefit from using the resources referenced from this topic.

Human Resource Guidelines Apply to For-Profits and Nonprofits

These Human Resource Guidelines Apply to For-Profits and Nonprofits

The vast majority of resources in this topic apply to nonprofits as well as for-profits. There’s a misconception that there is a big difference in managing human resources in for-profit versus nonprofit organizations. Actually, they should managed similarly. Nonprofits often have unpaid human resources (volunteers), but we’re learning that volunteers should be managed much like employees — it’s just that they’re not compensated with money; they’re compensated in other ways. Managing volunteers is very similar to paid staff — their roles should be carefully specified, they should be recruited carefully, they should be oriented and trained, they should be organized into appropriate teams or with suitable supervisors, they should be delegated to, their performance should be monitored, performance issues should be addressed, and they should be rewarded for their performance. Also, organizations should consider the risks and liabilities that can occur with volunteers, much like with employees. So nonprofit organizations should consider the resources in this topic as well.

Clarifying Some Terms — Human Resource Management, Human Resources, HRD, Talent Management

The Human Resource Management (HRM) function includes a variety of activities, and key among them is responsibility for human resources — for deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can’t yet afford part- or full-time help. However, they should always ensure that employees have — and are aware of — personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.

Some people distinguish a difference between HRM and Human Resource Development (HRD), a profession. Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, e.g., career development, training, organization development, etc.

The HRM function and HRD profession have undergone tremendous change over the past 20-30 years. Many years ago, large organizations looked to the “Personnel Department,” mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the “HR Department” as playing a major role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner. There is a long-standing argument about where HR-related functions should be organized into large organizations, eg, “should HR be in the Organization Development department or the other way around?”

Recently, the phrase “talent management” is being used to refer the activities to attract, develop and retain employees. Some people and organizations use the phrase to refer especially to talented and/or high-potential employees. The phrase often is used interchangeably with HR — although as the field of talent management matures, it’s very likely there will be an increasing number of people who will strongly disagree about the interchange of these fields.

Many people use the phrase “Human Resource Management,” “Human Resource Development” and “Human Resources” interchangeably, and abbreviate Human Resources as HR — HR has become a conventional term to refer to all of these phrases.

Thus, this Library uses the phrase “Human Resources” and the term “HR,” not just for simplicity, but to help the reader to see the important, broader perspective on human resources in organizations — what’s required to maximize the capabilities and performance of people in organizations, regardless of the correct phrase or term to be applied when doing that.

FIELD AND ROLES OF HUMAN RESOURCES AND TALENT MANAGEMENT

Another Look at Definitions

The introduction, at the top of this page, offers definitions of common terms and phrases to help the reader to first understand the topics and their organization in this overall topic in the Library. It will round out the reader’s knowledge and understanding to review a variety of definitions. Remember that, more important than getting the definitions “right,” is recognizing the purposes and activities that the following resources refer to.

Role of Human Resources Function in Organizations

Ask HR-What is it like to work in HR

A question I frequently get from those individuals outside of HR is, “What is it like to work in HR?” Well, the answer to that question can vary greatly by HR professional and organization.

Human Resources (HR) can include a broad spectrum of specialties within organizations. Some examples of specialties include recruiting, payroll, policy, safety, training and development, and performance management. In smaller organizations, the HR professional may handle all of those specialties and in larger organizations, each specialty is most likely its own department.

The roles within HR can vary greatly as well as with many departments from the purely administrative to the executive. Another related and perhaps more important question that is often discussed is, “what should HR be doing?” For me, HR’s primary purpose is to ensure that the right people are working in the right places to accomplish the organization’s goal.

In other words, HR is responsible to develop programs that will attract, select, develop, and retain the talent needed to meet the organizational mission. So whether you are an HR department of one or a combination of multiple departments that include hundreds of employees, your primary responsibility is talent management.

Here’s a quick test to see if your programs are aligned and focused on the primary purpose of HR. See if you can answer the following questions.

What is the primary mission of the organization?
What talent is needed to meet the mission?
Which programs do you have in the following areas:
- Identifying and Attracting Talent?
- Selecting and Hiring Talent?
- On boarding Talent?
- Developing Talent?
- Retaining Talent?
How is program success measured?
In what areas do we need to improve?

If you can’t answer these questions, you have some work to do.

Additional Resources About Roles of Human Resources

Boards and Human Resources

Also consider
Professionalism in Consulting

Challenges Facing Human Resources Function

If You Want a Seat at the Table, Learn the Business

In many companies HR does not occupy a seat at the strategic planning table. Who’s to blame?

The answer to this question is hotly debated and often clear lines are drawn between those in HR and those in other functions. Many HR professionals blame the leaders for not seeing the value of their function to the organization, while some managers see HR as the roadblock to doing what needs to be done.

In a 2005 article written by Fast Company Magazine’s Keith Hammonds, Keith purports all the reasons “Why We Hate HR.” If the title itself isn’t enough to put a HR professional on the defense, then providing the declaration that “HR people aren’t the sharpest tacks in the box” as the first reason certainly will. His assertion in the article is that those who enter the HR field are not business people and are ill-equipped to understand business. He quotes a Society for Human Resource Management (SHRM) study that identified which coursework HR professionals found most beneficial to their success in the field to support his message that the majority of those working in the field do not see understanding business as necessary to their success. The results showed that coursework in communications, business law, and ethics were most beneficial.

A recently released SHRM survey of HR leaders indicates the same finding. The respondents in the U.S. indicated that strategic thinking is one of the top five competencies needed for senior HR leaders; however, business knowledge was not listed. While the lineage of the field of HR coupled with the introduction of legislation to protect employers may have contributed to stereotypes that exist in the field about the HR profession, our failure as HR professionals to recognize that we are business people charged with the company’s most valuable assets will certainly continue to harbor those stereotypes we so emotionally defend. If you want a seat at the table, learn the business of business and speak the language of the executive team.

Additional Resources About Challenges Facing Human Resources

Future of Human Resources Function

“Talent Management” – New Movement in Human Resources?

Many people are beginning to use the phrase “Talent Management” to refer to the activities of attracting, developing and retaining employees — three activities also addressed in the sections below. For general overviews of talent management, see: Talent Management

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MAJOR FUNCTIONS OF HUMAN RESOURCES AND TALENT MANAGEMENT

Getting the Best Employees

Regardless of the nature of the organization, it must identify the most important roles in the organization and then recruit, orient, train and organize people to effectively perform those roles.

Paying Employees (and Providing Benefits)

The following link is to a resource that will help you establish suitable policies and procedures for compensating employees and for providing benefits in the most equitable and fair manner.

Benefits and Compensation

Training and Developing Employees

Development is more than conveying information to employees — it’s guiding and supporting them to evolve that information into knowledge that can be applied as skills in order to achieve the goals of the organization and its people — and it’s guiding and supporting those people to learn at the same time.

Ensuring Compliance to Regulations

Fortunately, compliance is no longer is seen by many as the primary role of Human Resources — it’s just one of the roles. However, compliance is as important today as ever, especially considering the diversity of people in the workplace, including their diverse values, opinions and perspectives.

Ensuring Fair, Safe and Equitable Work Environments

The care and cultivation of human resources should consider at least the following topics — the topics often are addressed as official programs in the workplace.

Sustaining High-Performing Employees

Nonprofit Human Resources

As noted in the introduction to this topic, guidelines to managed human resources in nonprofits are very similar to those to manage in for-profit. See the above paragraph These Human Resource Guidelines Apply to For-Profits and Nonprofits. After reviewing the above resources, nonprofits could review the resources from the following link — the resources mention they are nonprofit-specific.
Nonprofit Human Resources

GENERAL RESOURCES ABOUT HUMAN RESOURCES

General Resources About Human Resources

Some Blogs About Human Resources

For the Category of Human Resources:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

January 10, 2022March 28, 2023

The 9 Best Payroll Software for Small Businesses in 2023

If you want to know how to do payroll for your business the easy way, use payroll software. You can automate everything from gathering employee information on tax forms to calculating, paying, and filing payroll taxes with a quality payroll software solution.

Invest in a payroll processing solution that suits your needs to save yourself the trouble of running into payroll mistakes and paying FLSA fines and tax penalties. We researched the market for the best payroll software and shortlisted a handful to make the pick easier for you.

Best Payroll Software for 2023

Gusto – Best Overall
Rippling – Best for Mid-sized Businesses
Paychex Flex – Best for Scaling Businesses
Paycor – Best All-in-One Solution
OnPay – Best for Restaurant Payroll
ADP – Best for HR Features
Intuit QuickBooks – Best for Fast Direct Deposits
Square Payroll – Best for Contractor Payroll
Patriot – Best for New Businesses and Startups

Gusto

Starts at $39/mo. + $6/employee/mo.

2-4 days (Next-day deposit for advanced plans)

Available Monday – Friday from 8 am-5 pm MST

Rippling

Quote-based – Starts at $35/mo. + $8/employee/mo.

2 days

Email and live chat support. Live phone support costs extra

Paychex Flex

Starts at $39/mo. + $5/employee/mo.

Next-day deposit

24/7 phone and chat support

OnPay

Starts at $36/mo. + $4/employee/mo.

4 days

Available Monday – Friday 9 am-8 pm ET

Paycor

Starts at $99/mo. + $5/employee/mo.

2 days

Available Monday – Friday from 8 am-8 pm EST via phone

ADP

Quote-based

2 days

Available on phone

Intuit QuickBooks

Starts at $35/mo. + $4/employee/mo.

Same-day direct deposit

Online resources, lacks live chat or phone support

Square Payroll

Starts at $35/mo. + $5/employee/mo.

4 days

Available via phone, live chat, and email

Patriot

Starts at $10-30/mo. + $4/employee/mo.

4 days

Only with Full Service Payroll plan

Available Monday – Friday 9 am-7 pm EST via phone and live chat

Gusto – Best Overall Payroll Software for Small Business

Pricing: Plans starting at $39/mo. + $6/employee/mo.

4.8

★★★★★

Visit

Gusto is a robust platform that unifies payroll, benefits administration, HR, and compliance functions into a single, easy-to-use package. Read our Gusto review for an in-depth analysis of the software.

It’s made for small firms who want to remain on top of their employees’ basic HR needs. Many businesses in the United States use the app owing to its robust collection of payroll functions, a well-designed user interface, and automation possibilities.

Gusto includes unlimited pay runs and basic reporting in all its plans, providing everything a small business needs in a payroll software. Its core plan offers full-service payroll including employee tax forms, benefits management, and integrations with a range of other tools.

Why we chose it: Gusto includes unlimited pay runs and basic reporting in all its plans, providing everything a small business needs in a payroll software. Its collection of features also makes it suitable for mid-sized and large companies.

More affordable than similar platforms
Offers unlimited payroll runs and PTO tracking
Available in all states

Dedicated support is exclusive to higher-tier subscribers only
Next-day direct deposits available only with Complete and Concierge plans
No time tracking features offered in Core plan

Pricing: Gusto offers three different plans for businesses with permanent W-2 employees and a Contractor Only plan for businesses that hire independent contractors only.

Contractor Only Plan: No base fee. $6/mo per person
Core Plan: $39/mo + $6/mo per person
Complete Plan: $39/mo + $12/mo per person
Concierge Plan: $149/mo + $12/mo per person

Rippling – Best Payroll Software for Mid-Sized Businesses

Pricing: Quote-based (expected cost $35/mo. + $8/employee/mo.)

4.4

★★★★★

Visit

Rippling offers a great mix of HR and payroll functionalities, making it a great option for mid-sized businesses as it simplifies personnel management.

Users may sync data from other personnel management systems to automate data entry and guarantee that each employee receives pay as soon as feasible with this platform. It also includes task management tools, personalized alarms, and a built-in unified personnel database, as well as reporting capabilities that allow HR teams to analyze salary trends.

Rippling offers loads of integrations with accounting, time tracking, attendance, and other tools. Its integrations are one of the biggest factors that makes it an attractive option. You can streamline your payroll and get your employees paid as quickly as possible with this payroll software.

Why we chose it: Rippling’s offers a depth of service and flexibility which make it a great choice for companies with complex payroll needs. Although its price and user experience appeals to small businesses, we recommend it for mid-sized companies employing more than 10 employees.

Offers a decent price point for mid-sized and small businesses
Can pay any employee anywhere on the globe
Can be integrated with hundreds of apps

Pricing isn’t transparent
Gets pricey as you add more features
Limited customer support

Pricing: Rippling has a quote-based pricing plan where you can get a custom price by setting up an appointment with a Rippling advisor. That said, here’s what you should expect it to cost:

Core: $35/mo. + $8/employee/mo.

Paychex Flex – Best Payroll Software for Scaling Businesses

Pricing: Plans starting at $39/mo. + $5/employee/mo

4.2

★★★★★

Visit

Paychex Flex offers a variety of reporting features and gives users upgrade options, which is vital for scaling businesses. It offers around 160 different kinds of reports so you can have a better look at your business’ expenses. If you prioritize data and reports to gain insight into your business operations, Paychex has everything you need.

Although it’s one of the more costly payroll services in this guide, its features make up for the cost. Paychex offers automatic federal, state, and local tax filing for your business. It offers next-day direct deposit even with the basic plan, plus new hire reporting, a mobile app, and a library with HR resources.

If you opt for advanced plans like Select and Pro plans, you get extra features including a dedicated payroll specialist to help you out with tax and payroll problems. Integrations are an important aspect of quality payroll software and Paychex does well in this department. It integrates with Xero accounting and QuickBooks, health insurance and benefits, time tracking, and attendance apps.

One drawback is that pricing isn’t transparent on the Paychex site. This makes it a little difficult to compare its services.

Why we chose it: Paychex Flex is recommended for business owners who want to have insightful reports on their company’s payroll. Plus, it’s an excellent option for scaling businesses as it lets you easily upgrade to advanced plans as needed. Read the Paychex review to learn more about it.

Interface is quite user-friendly
HR add-ons are available
Reporting feature is quite robust and useful

Additional fees for payroll tax administration
There are some hidden fees when it comes to initial setup
Additional fees for third-party software integration

Pricing: Paychex’s payroll service is divided into three categories. The most basic option costs $39 a month plus $5 per payee. Paychex Flex Select and Paychex Flex Pro are two other Flex plans offered by Paychex.

Paychex Flex Essentials: $39/mo. + $5/mo. per employee
Paychex Flex Select: Quote-based
Paychex Flex Pro: Quote-based

OnPay – Best Payroll Software for Restaurant Payroll

Pricing: Plans starting at $36/mo. + $4/employee/mo.

4.0

★★★★★

Visit

OnPay is a cloud-based payroll solution that offers a comprehensive set of payroll and HR features. It’s a great choice for small businesses looking for simple and affordable payroll management.

OnPay provides highly scalable apps with easy-to-use features which makes it ideal for SMBs with the potential to grow. This cloud-based service can automate tax filing and payment while improving payroll operations.

Additionally, it has several features specifically for restaurateurs such as overtime calculations and minimum wage tip makeup which makes it the best restaurant payroll software. But at the same time, it lacks features like automatic payroll, fast direct deposits, and offers limited integrations. This can make running payroll with OnPay much more tedious and time-consuming.

Because it has a simple interface, you can enter payroll data such as hours, reimbursements, tips, and bonuses with ease. Other responsibilities, such as benefits and compensation insurance for employees who work on a pay-as-you-go basis, can also be administered using the system. OnPay doesn’t have a dedicated mobile app, but it has a mobile-friendly website for on-the-go payroll runs.

Why we chose it: OnPay has a really simple pricing structure that involves no hidden fees or costs for added features. We chose it for its simplicity and scalability which makes it perfect for small businesses, especially restaurants.

No hidden fees
Unlimited monthly pay runs
Great user experience

Limited integrations
Doesn’t offer fast direct deposit
No mobile app

Pricing: OnPay’s pricing structure is one of the simplest out there. It comprises a single plan with one base fee and a per-employee fee that increases the cost as you pay more employees. The site has a slider feature that lets you calculate the exact cost of running payroll according to the number of employees you pay each month.

OnPay Pricing: $36/mo. + $4/employee/mo.

Note that everything is included in this price and OnPay won’t charge you additional fees. Plus, it only bills you for the number of workers you actually pay in a month.

Paycor – Best All-in-One Payroll Software Solution

Pricing: Plans starting at $99/mo. + $5/employee/mo.

3.8

★★★★★

Visit

Paycor is a great choice for small businesses that need help with HR and payroll tasks but can’t afford to have an in-house HR department. With a wide range of tools, Paycor is an all-in-one solution. It can help you handle recruitment, onboarding, employee management, benefits management, payroll, and other aspects of HR and payroll effectively.

Paycor is a unified human capital management (HCM) solution that keeps employee data in one place (online database), eliminating the need to move platforms, access various systems, or re-key data. The software consolidates employee payroll and HR data, making it easier to manage human capital without switching systems.

When it comes to payroll, Paycor offers full-service payroll including tax calculation, withholding, and filing, real-time payroll analytics, and employee self-service. It also has a mobile app to help streamline payroll for you and your employees.

Users may use Paycor to automate repetitive tasks, reduce compliance risk, increase efficiency, empower staff to manage their own finances, and obtain a better knowledge of their organization through sophisticated analytics and insights.

Why we chose it: Paycor stands out because it’s not just payroll software. Its range of HR services makes it a great all-in-one solution for businesses that can’t afford to hire an in-house HR professional.

Offers plenty of options for training and support
Can be deployed via desktop, mobile, and cloud platforms
Offers recruiting and HR solutions in addition to payroll

HR tools not included in basic plan
More expensive than other payroll software
Doesn’t have native time tracking

Pricing: The Paycor pricing plan that applies to you depends on the size of your business. The plans mentioned below apply to you if you’ve got less than 50 employees. But if you’ve got more than that, you can get a custom quote and get to try out the service free for three months.

Paycor Basic: $99/mo. + $5/mo. per employee (no setup fee)

Paycor Essential: $149/mo. + $6/mo. per employee (setup fee waived)

Paycor Complete: $199/mo. + $7/mo. per employee (setup fee waived)

HCM: $199/mo. + $12/mo. per employee (setup fee waived)

ADP – Best Payroll Software for HR Features

Pricing: Quote-based pricing structure

3.7

★★★★★

Visit

ADP is one of the oldest players on the market. With more than 70 years of payroll experience under its belt, ADP offers you the knowledge and expertise you can trust. It offers a wide variety of plans to choose from for both small and large businesses. You will certainly find a plan that suits your needs from this payroll software.

ADP makes its mark with its ability to meet your needs as your business grows. If you’re a small business, it does a good job of handling payroll, taxes, and compliance for you. But as you grow, its advanced plans have additional features that help make things simple for larger, more complex businesses. These include HR support, recruiting, and onboarding.

ADP’s more costly plans include employee background checks, ZipRecruiter help, and specialist HR assistance if you need more than the HR fundamentals to support your expanding workforce.

Direct payment, automated payroll tax filing, and W-2 submissions are included in all ADP payroll system plans. It also has an employee portal for employees to view their pay stubs and change their information as required. All plans give you access to customer support that is available 24/7, so you can get answers and assistance whenever you need it.

With ADP Payroll, you can’t see the cost of all plans upfront to compare them. You must first request a quote after answering some questions about your business to see the pricing structure.

Why we chose it: Apart from a top-quality payroll processing service, ADP’s powerful HR features make it an excellent substitute for an in-house HR professional. If you plan to grow with ADP or already need an HR department, ADP can meet your needs with ease.

24/7 customer service availability
Customizable for growing companies
Mobile access

Difficult to access pricing without requesting a quote
Hidden and additional fees
Interface may be overly complex for small businesses

Pricing: ADP has four pricing plans for its payroll service, Essential Payroll, Enhanced Payroll, Complete Payroll & HR+, and HR Pro Payroll & HR. The cost of each of these plans remains unclear as ADP employs a quote-based pricing model. You can get your quote by entering your company size and details on the ADP website.

Intuit QuickBooks – Best Payroll Software for Fast Direct Deposits

Pricing: Plans starting at $35/mo. + $4/employee/mo.

3.7

★★★★★

Visit

If you currently use QuickBooks for accounting, QuickBooks Payroll is the simplest choice to set up because it integrates seamlessly. One of its best features is fast same-day direct deposit, which allows you to make quick payments. Also, you can expect automated functions and a user-friendly interface.

Because the training and knowledge base is so comprehensive here, you’re unlikely to need to contact support for assistance. If in doubt, a short search on the internet will lead you to a plethora of walkthroughs.

Why we chose it: QuickBooks Payroll is a great choice if you already use QuickBooks for accounting and want to integrate your payroll software with it. Go for it if you’ve got less than 50 employees. Plus, its same-day direct deposit is one of the biggest reasons why we chose it as it lets you pay your employees as quickly as possible.

QuickBooks Online integration feature
Same day and next business day direct deposit options
Extended customer service hours

Extra tax filing fees for Premium and Core plans
Limited HR features for numerous employees
QuickBooks Online integrations are somewhat limited

Pricing:

Intuit QuickBooks payroll software comes in four different pricing plans. They only have a base fee and no extra charges per person paid.

Simple Start: 12.50/mo.
Essentials: 25/mo.
Plus: 40/mo.
Advanced: 90/mo.

Square Payroll – Best Payroll Software for Contractor Payroll

Pricing: Plans starting at $35/mo. + $5/employee/mo.

3.5

★★★★★

Visit

Square Payroll is an excellent option for businesses that just need to do contractor payroll. While any of the payroll software on our list should be able to do this, Square Payroll is the most cost-effective solution.

We recommend Square Payroll if you already use Square POS. The two integrate very well which means paying employees is much easier. That said, this payroll software is not a good option for larger teams.

Because Square Payroll doesn’t charge a price for inactive months, it’s also a good option for seasonal firms that don’t work every month of the year. Read our complete Square Payroll review to learn more about it.

Why we chose it: Square is a top-quality payroll software that offers a range of features that make running payroll a cakewalk. It’s a great option if you hire contractors only since you only have to pay $4 per worker. Furthermore, if you already use Square POS, then look no further. This is for you.

Low pricing
Easy to use
Integrates with other tools

Basic HR functionality only
Slow customer support
Basic payroll reports

Pricing: Square offers two pricing plans for its online payroll processing service:

Pay Employees & Contractors: $35/mo. + $5/mo. per employee
Pay Contractors only: $5/mo. per employee

Patriot – Best Payroll Software for New Businesses and Startups

Pricing: Plans starting at $10-30/mo. + $4/employee/mo.

3.0

★★★★★

Visit

Patriot is an excellent option for budget-conscious startups and small companies because it has one of the most affordable pricing plans. It’s also extremely easy to use, making it ideal for new users.

Patriot’s Basic Payroll plan is only $10 per month and $4 per employee, making it the most affordable payroll software on our list. This is a fantastic deal on payroll software since it allows you to conduct limitless payrolls at any frequency without costing you an arm and a leg.

However, if you want Patriot to handle your tax filings, you’ll have to upgrade your subscription to Patriot’s Full Service Payroll package.

Why we chose it: Patriot has a simple, intuitive user interface and easy-to-follow training materials making it suitable for business owners who are new to payroll. Plus, it has one of the most affordable plans so if you’re on a tight budget, go for Patriot.

Very user-friendly, especially for beginners
Offers excellent payroll flexibility
Employee portals are decent

Limited pay types
Add-on fees for some features
Payroll runs slower than competitors

Pricing: Patriot payroll software offers two pricing options, Basic Payroll, and Full Service Payroll. The Basic plan assists you with running payroll but you have to do your taxes yourself. With the Full Service plan, Patriot handles your taxes for you.

Basic Payroll: $10/mo. + $4/mo. per employee

Full Service Payroll: $30/mo. + $4/mo. per employee

Methodology for the Best Payroll Software

If you try doing payroll yourself, you’ll learn that it’s one of the most complicated admin tasks. You have to take care of a variety of things from paying employees on time to calculating payroll taxes and filing them on time.

You’ve got a range of aspects to take care of to stay in compliance with payroll laws, and this is why we always recommend you use payroll software instead. But choosing the right payroll software isn’t much easier either.

We consider multiple factors from pricing to quality of service and customer support to bring you the best payroll software on the market. Here are the criteria we use to evaluate our picks.

Cost: We understand that wise spending is crucial for a small business’s success. This is why payroll software pricing carries the most weight in our methodology. If price is the most important factor for you, you might also want to consider free payroll software.

Quality of service: When it comes to payroll processing software, quality of service comprises the speed of payroll, fast direct deposits, tax filing for all states, and integrations. These aspects are essential to give users a hassle-free payroll experience.

Ease of Use: Entrepreneurs invest in payroll software to take the load off their shoulders and be able to pay their employees with ease. This wouldn’t be possible without an easy to use payroll software. We ranked software with a simpler and more intuitive user interface higher than those that have a bit of a learning curve.

Features: HR tools, reports, analytics, available payment options, a mobile app, and an employee self-service portal are some important features a payroll software should have. Each payroll software offers a distinct range of features, so we considered them to identify which software suits different businesses. By identifying the solutions available from each provider, we were able to categorize our top picks based on their strengths.

Customer Support: When picking a software solution, good customer service is one of the most important considerations for many people. You never know when you’re going to run into a payroll issue, but responsive customer service makes sure you can resolve any issues right away.

Frequently Asked Questions (FAQs) for Best Payroll Software

Here are some of the more common questions about the best payroll software.

What is payroll software?

Payroll software is used to simplify and manage the process of paying employees. Payroll software allows businesses to automate tasks such as calculating paychecks, deducting taxes, and transferring monthly payments into workers’ specified bank accounts.

Once an employee’s typical payment information, such as their wage, the number of hours they work per week, and their bank account information, has been put into the software system, minimal upkeep is necessary.

What are the advantages of payroll software?

Payroll software has the advantage of relieving accounting professionals of many of the administrative processes connected with making employee payments, which would otherwise be quite time-consuming. It also lowers the number of issues caused by human error.

Payroll software and its reporting tools are essential for businesses with a big number of employees to keep their finances in order.

Can anyone use the best payroll software?

For the most part, yes. Payroll software should be considered by every company that employs people, whether full-time, part-time, or on a contract basis. Payroll automation may save you time, eliminate human error, and ensure that everyone is paid correctly and on time.

Depending on the size of your company, you might want to hire someone to manage your payroll software. There is still administrative work to be done, even when payroll software automates computations, manages payroll for full-time employees, and submits payroll taxes.

Is there a difference between bi-weekly and bi-monthly payroll payments?

Payroll processing on a bi-weekly basis is the most prevalent payroll schedule. Direct deposit on alternate Fridays is common, with 26 paycheck dates throughout the year. Because there are fewer fund transfers, the payroll processing cost is lower than the weekly payroll.

Semi-monthly Payroll is ideal for businesses that pay commissions on a regular basis or have a lag in receiving payments from a vendor or governmental entity. There are a lot of 1st and 15th check dates, as well as some unusual ones like the 4th and 18th. This frequency of processing occurs 24 times each year.

Conclusion – The Best Payroll Software

While all of the best payroll software on this list are pretty good options, nothing quite beats Gusto. In addition to top-notch full-service payroll capabilities, Gusto covers everything from health insurance to tax accounts to HR to team management.

Pricing is affordable, and the interface of Gusto is extremely user-friendly. This modern and robust online platform is the best payroll software for small businesses as well as larger teams. Gusto currently offers a completely free one-month trial.

October 28, 2014January 17, 2023

Training Day – Professional Development

A cascade of written developmental words

What is Professional Development?

I began this article by looking again at the differences between training and education, or trainers and teachers. In A Look at the Education vs Experience Debate and in an earlier post, What’s the Difference Between Training and Teaching, I made a few comparisons. This time, I thought it might be interesting to comment on what some consider the end-result of training: professional development.

To some organizations, professional development means a training day of best practices. This isn’t professional development; this is a day of opportunity. It could be a sharing conference; however, most attendees are more likely to be sharing drinks. Ironically, it is during these moments of relaxed opportunity the best information to aid in one’s quest for professional development occurs. Still, that is not professional development, but it’s a start.

Why? Because professional development includes so much more. Interestingly enough, the social aspects, character modeling and professional information comparisons from a single conference may be more valuable than a single, specific knowledge-based training day.

Professional development refers to the acquisition of skills and knowledge used for personal development and for career advancement. Generally, professional development would include all types of learning opportunities some facilitated and some not. It should start with specific training, college and university education as well as conferences and never end. Along the way, continuous learning should provide other opportunities and practice specific to an employee’s position and career goals.

Many organizations fall short. They may have a director of professional development, who in most cases, is a glorified training manager. That’s not always the case, of course. There are professional development directors who understand the concept, but many other who do not. It could be, they have the definition wrong.

At its core, professional development with an organization should begin with a plan for long term use of an employee. At interviews and during the orientation references are made about employee growth, but, for the most part, the employee is left alone after that to survive and strive or not deliver and not survive. The individual employee, unless mentored by someone with influence, is left to his or her devices when it comes to professional development. The valuable employees are those who seek out additional opportunities to learn, continuously learning. Ironically, and it shouldn’t be, these same employees ask for raises and promotions, which may annoy their superiors.

In an environment where professional development is practiced, the process is collaborative and intensive. Professional development should include a career manager who ensures employees are right for their jobs, and works to keep them in jobs that, not only make them successful but the organization as well. That is not to say, there should not be an evaluative stage, but by incorporating career management, we assure someone who is not doing well flounder, but can thrive in another position.

In larger companies, this is easy to do. In smaller companies or organizations the same attitude toward professional development can be extended to the employee by modifying his or her position to include a different, yet positive skill set. If that doesn’t work, the employer should assist the employee in finding a more suitable position rather than him or her “kick to the curb;” asserting that this employee–who they hired–is now a nuisance, guilty of negatively impacting their mission. As a part of professional development, employers should offer support, not grudgingly. Employer and employee responsibilities go both ways. At one time, providing an employee security and career develop was every corporation, company and organization’s mission.

In this current economy, it was the first employee support to go, followed quickly with practices of limiting hours, making employees part-time so benefits were not required. With failure or disappointing results, newer, less experienced employees are the ones to go–with the hope being that this will change the financial outlook.

Then, again there are employees who lose it, who don’t fit in anywhere anymore. Too much damage is done.

Perhaps it could have been prevented by nurturing rather than coercing production based on potential termination or demotion. “If this doesn’t happen, you’re fired.” And said nicely, “So, if you fail to deliver…” with threat hanging there. It isn’t always a competence or performance failure, but sometimes–often times, a personality factor.

Not everyone fits with everyone in the organization. In room filled with people who do the same thing, there are only a few true connections; the rest are tolerated. Unless, one or two cannot be tolerated. Now, we get into leadership and management issues, which if you think about them, are intricately linked to professional development.

The process of professional development is mistakenly called training and vice versa. We train for a career by learning a trade or receiving an education. After that, any type of “training” is immediately included in the professional “portfolio,” as if presentations on diversity and sexual harassment have to do with an individual’s career growth. Not that those items–usual presentations or simple computer orientations–don’t have value, but they have more to do with character. Certainly, not paying attention in those areas could result in termination of one’s career. Still, by definition, it is not part of professional development, nor are they really training. If anything, they seek to affect one’s moral character.

People may be trained to do a specific job, or perform a job that requires a very prescriptive skill, i.e., a surgeon or architect. Attorneys learn about the law or more specifically; however, although they were educated in litigation techniques, they will not be considered trained until they have litigation experience. My preference for a surgeon is not one who has read about techniques in a book, but has practiced them. That could be said about many professions. And, here we are back with professional development, requiring training to be an element in career progression.

Continuing education or training is but one of the many ways to pursue professional development. These ways include simple lesson study (a specific training like leadership, supervision, management, analysis… Mentoring is a great way to incorporated and ensure proper employee development, as is individual coaching and consultation. As an Executive Coach, my job was to offer assistance, usually to middle management, assistance in speech preparation and delivery. Interestingly enough, my clientele were confidential. My clients did not want their company to know they had a coach. So, my business grew by word of mouth.

Rather than a training day, the organizational attitude should be about helping individuals learn and grow within as well as outside the organization. An employee who feels his or her worth is a valuable employee that gives more all the time, knowing the reward is always there. It doesn’t have to be compensatory unless he or she measures his or her worth by that compensation. However, that does take away from self-satisfaction. Had the corporations, companies, or organizations an enlightened view of professional development (and conveyed that to employees) my clients wouldn’t have felt the need for confidentiality. Naturally, they paid for professional development out of their own pockets. I’d say that’s an employee to develop and keep an eye on his or her career.

By having an attitude of continually exploring and learning new aspects of our profession, we, indeed, become professional. At various times, I was a spokesperson, then a teacher and finally, a trainer and speaking coach. Today, I teach and train. I’m constantly comparing the two words on my training and development blog. One blog in particular is the one garnering the most hits. Guess which one that is. It’s on the difference between teaching and training.

Professional development, it turns out, is misunderstood by many. I’m not saying I got it right or even say it better than others, but professional development involves training and teaching/education and is not as interchangeable as one may think. And, the subject is complex; I have only grazed the surface.

Finally, while professional development is thought to be different and sometimes the same, it doesn’t need comparison. Employers, employees and the economy changes over time. Sometimes we forget original intentions in favor of profit margins. Some might say we’ve forgotten the very people we hire to make our company or organization what it is today. We changed the definition when it didn’t suit our pocketbook or actions. Many English words have interchangeable definitions and usage; however, there are times in which we should look back for the original meaning and pursue those intentions. Professional development needs to be new again, and used accordingly.

The above is commentary and does not necessarily reflect the opinion of The Free Management Library.

Happy Training.

By the way, this is not all I do. I believe in connections. Information and communication is applicable in training and development as well as education. If you are interested in my approach here or in other offerings on the site, you might also be interested in my book, The Cave Man Guide to Training and Development. “Cave” and “Man” are separate on purpose. The “cave” is simply where we train. I promise there will be a II and III based on my articles here. If you like what you see here, I have a blog site, Shaw’s Reality, where I look at the world’s reality from a variety of perspectives. I have also published a young adult science fiction dystopian novel, In Makr’s Shadow.

By all means though, check out The Free Management Library’s complete training section.

October 20, 2014April 30, 2022

Performance Management: Why Aren’t We Using Performance Information

Every once in a while it is necessary to get the details.

The following article is reposted with permission from John Kapensky via GovLoop. John is a Senior Fellow, IBM Center for The Business of Government in Washington, D.C.

W HY ISN’T PERFORMANCE INFORMATION BEING USED?

Champions of performance management in government are confounded. After decades of trying to integrate the use of performance information into agency decision-making, it still isn’t happening on as broad a scale as once hoped.

The initial premise twenty years ago was that if performance information was made readily available, it would be used by agency decision-makers. That turned out to not be true.

Background. A recent GAO study conclude that the “use of performance information has not changed significantly” in surveys of federal managers between 2007 and 2013. More specifically:

“. . . only two [of the 24 major] agencies – OPM and the Department of Labor – experienced a statistically significant improvement in managers’ use of performance information.” And four experienced a decrease.
But “SES managers used performance information . . . more than non-SES managers both government-wide and within each agency.” And in 9 of the 24 surveyed agencies, the gap was statistically significant.While Congress was able to mandate the collection and reporting of performance information via the 1993 Government Performance and Results Act, there hasn’t been a successful strategy to get managers to use the information. The Bush Administration tried, by focusing on program-level measures. The Obama Administration tried, by focusing on cross-agency and agency-level “priority goals,” supplemented with quarterly progress reviews. But the GAO survey doesn’t show any real changes over time.

So Now What Do We Do? GAO’s report offered some “better practices” that it thinks would help, based on some of its past work and observations. These included a series of “effective practices” such as improving the usefulness of performance information and better communicating performance information. These practices may help. However, a recent article (paywall) by Jeanette Taylor, a professor at the University of Western Australia, offers some new insights on what leaders might do differently. She examines the “lack of use” challenge from a different perspective – organizational culture. In her research, she found “the effects of performance information on organizational performance depend on the organization’s culture,” and that “organizational culture . . was the dominant antecedent of performance information use,” and that “. . . different types of cultures adopt performance management differently.”Her research tries to unbundle the distinctions in order to provide a roadmap of the different ways leaders need to approach the use of performance information in their organizations.

Four Types of Organizational Cultures. Drawing on the work of other academics, she highlights four distinct models of organizational culture:

The Individualistic Culture. This type of organization stresses individual effort and skill, and a belief in competition. It may, for example, adopt performance incentive structures.
The Egalitarian Culture. This culture emphasizes a high sense of belonging to a group. Staff in this kind of agency would be more receptive to performance dialogues instead of incentives.
The Hierarchical Culture. This type of organization stresses well-defined rules of social interaction. Employees and managers here will likely want performance management to be aligned with the professional and technocrat core of the organization.
The Fatalist Culture. Employees are skeptical about organizational prescriptions for human betterment and may “engage in ritualistic performance management exercises” (e.g., passive-aggressive compliance with requirements: “Just tell me what you want me to do and I’ll do it”).

In practice, real organizations do not fall neatly into one or the other of these models. But understanding the distinctions suggest different implementation strategies.

Three Layers of Organizational Culture. Fellow academic Edgar Schein differentiates three levels of organizational culture that exist within each of the four types of cultures.

Observable Artifacts. In this layer, visible characteristics that an outside observer can see might include office layout, dress code, observable routines, and published documents. Some academics see routines as “the critical factor in the shaping of behavior.” Learning forums are examples of organizational routines, as are strategic planning and benchmarking. Interestingly, Taylor says that “routines can promote continuous change if they occur regularly, the organizational context support the changes, and “professional employees have discretion in the way they perform their tasks.
Espoused Values and Beliefs. This layer is comprised of documented norms, ideals, goals, and aspirations of the organizational group. Taylor says: “A clear, understandable, and distinctive organizational mission has been found to be positively related to employee mission valence.” She also observes: “The development of a common language, particularly for key concepts like performance indicator and benchmarking, can contribute to the successful use of in-project measurement.”
Underlying Assumptions. This layer is comprised of unconscious, taken-for-granted, non-negotiable beliefs and values that influence how group members think and feel about things and guide their behavior. This is the hardest layer for outsiders to influence because “. . . performance information involves subjective interpretation by the managers who acquire and use it,” and “Performance management requires that judgments be made on what to measure, how to measure and interpret it, what determines success and failure, and what information is relevant or important.” As a result, an organization’s underlying culture “can influence how it views and behaviorally responds to performance management.”

Just ask any VA executive over the next two decades about how its underlying culture affects their perception of performance management!Schein’s layered approach explains how understanding an organization’s culture differs, depending on one’s perspective, and how the deeper ones are harder to identify, measure, and change. His approach also recognizes that there can be subcultures within an organization (geographic, professional, hierarchical), and that it is inappropriate to assume that a single, organization-wide dominant culture will prevail across a department or agency.

So the bottom line, says Taylor, is that successful implementation “requires changes in the organization’s systems and structures (artifacts), its underlying values (assumptions), and the way management reinforces these values (espoused values).”In contrast, most federal agencies have emphasized the creation of what Schein calls “artifacts” – processes, methods, and technical know-how.

Re-Thinking Strategies. It may be time to re-think the strategies for how best to encourage federal managers to use performance information in their jobs. GAO and Taylor both help point the way to a more nuanced approach.Getting managers to use performance information isn’t just a procedural or technical exercise.It is a fundamental change in how they do their day-to-day jobs and how they approach problem-solving. Harvard’s Bob Behn says that using performance information is a leadership strategy, not a set of processes and procedures.In fact, GAO found that training managers on how to technically develop performance measures actually led to a decrease in their use by managers! GAO found that training managers on how to analyze and use performance information was far more conducive to use.Is this too hard? Can managers’ mindsets be changed? It already has been done, in dozens of places across the federal government.

The challenge is to showcase and share lessons from existing efforts. The successes aren’t called “GPRA.” Instead, they go by different terms, such as “strategic analytics,” or “evidence-based decision-making,” or “moneyball government.” These efforts are not rooted in complying with GPRA requirements. They are energized by managers who use these approaches to get clear mission results such as reducing fraud, increasing air quality, speeding drug approvals, streamlining disability benefit approvals, and more. Showcasing these initiatives is happening, but more could be done. Maybe a mentoring program is needed. Maybe more targeted training could help. But it is clear that requiring new processes, procedures, organizational structures, and reporting isn’t going to increase managers’ use. The hard part will be that it has to be developed within each organization, and within their respective cultures.

Graphics Credit: Courtesy of Salvatore Vuono via FreeDigitalPhotosTags: Analytics, Evidence-Based Decisions, GAO, GPRA, Modernization Act, Moneyball,Omb, Organizational Culture

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Thanks to John Kapensky for this fine article. For more information, click on the tags above. Check out The Free Management Library’s complete training section.

September 11, 2014March 28, 2023

Failure Résumés—A Training Guide for Success

job search — “Failure is not an option.”

Who says your failures can’t lead to success? Employers it seems.

We are fond of saying, “Failure is not an option.” And “when it’s rough, the tough get going.” That may be a positive result of the United States unemployment situation and lagging economy.

Today’s unemployed may have failed in nailing a specific job or holding on to one in hard economic times, but they are learning fast from previous mistakes and have an attitude more in tune with success than failure. If they don’t get a job, they’ll make one. Highly successful start-ups are one result. And leaders who think finding alternative options and problem-solving are sometimes one and the same.

That raises an interesting question. What might happen if you were to submit a list of your failures and what you learned from them as a résumé?

How many people do we know who made it “big,” after years of failure? Today, fewer people may be unemployed statistically because rather than be unemployed, they kept plugging away at re-designing themselves to fit in, but since that didn’t appear to be happening, they had to do something on their own. So they created.

You hear it all the time. Statistics show we can be expected to have 11 to 13 different careers in a lifetime. That tells me times have changed. Do employers really think a job hunter will be with the company for 30 years with an eye toward retirement? If they do, they’re out of touch. Especially when it comes to employing the millennials in the workforce today; a long-term commitment, tied to one place, is not the life for a millennial. In fact, most millennials would probably prefer to be unemployed than work for a company that puts itself first.

Listing major accomplishments has been the format for effective résumé for a long time, and companies still ask for the obvious position-related experience.

That’s not the norm in the Silicon Valley and other high technology centers where creativity and failure is used to evaluate candidates for new jobs.

Companies and organizations are forever complaining they can’t find innovative workers with problem-solving abilities. However, the real problem is that companies aren’t hiring employees or even training employees in most cases to be innovative; instead they hire people, using the same barometer and that barometer has changed.

Can we predict an applicant’s future performance based on the failure résumé? Probably not. The applicant will have, however, demonstrated a pioneering, entrepreneurial spirit, a form of leadership, in overcoming the odds with persistence. In computer science, “persistence” is a characteristic, outliving the process that created it. In humans that persistence seems more a sort of perpetual motion, once thought to be impossible. Survival. Not survival of the fittests, but survival nonetheless.

Albert-Einstein-1921 — Albert Einstein-1921

The idea of using a “failure resume” is intriguing to contemplate. So intriguing, in fact, it could and should become the way we look at ourselves and others. After all, scientists overcome many failed experiments to form a new theory, discover a novel idea or develop a unique product. Artistic professionals, albeit in art, in music or in theatre, withstand many failures or rejections of their work before they become successful. It is about creativity or talent, doggedness, and, most of all, learning from mistakes. As a society we try to learn from our mistakes often over and over again.

The HR’s idea of having a “proven track record” should change, but only in the way we look at people who learn from their mistakes and go on to have successes based on what they learn.

We all learn best by doing. Isn’t that what apprenticeships were for in 16th through 19th century? To allow apprentices to learn the trade, expecting they would make minor mistakes under the guidance of a seasoned mentor, but that they would learn from their mistakes.

Experience is still what we need in business or any organization. The hiring system needs to be more welcoming as far as candidate failures. Negative candidate behaviors such as stealing from the company, abusing their position or treating their workers inappropriately are still not forgivable. But some failures, any failure at all really, is used to narrow the pool of otherwise qualified candidates.

Some management and leadership experts, including university professors, now suggest we look at an applicant failures and the after result. A few universities and colleges are developing this approach, but change is hard across the board. Many corporations, still wired to the market approach to business, adhere to that tradition and do not develop creativity and problem solving within; if the market dips for their products they often look to buy thriving innovative start-ups, absorbing their creative personnel. In general, you might say, creativity and unproven problem-solving is not embraced; although if you look closely, the most successful CEOs are innovative in their thinking and leadership. Companies will often hire from that proven traditional “success” pool—hence the increasingly large salaries. Perhaps, they should do otherwise, finding creativity outside among the “losers” who aren’t really “losers.” These are dedicated professionals who have redirected their creative energies out of frustration with the status quo.

If they accept this notion, how do companies and organization go about updating their system? Change doesn’t happen overnight either, so they should start small. Hiring creative managers (maybe even developing a creative manager position for the company) would be a good start. They should also begin by taking the same risk creative people do, trying on a number of options. That means hiring former failures and trainers to maintain that sharp, creative edge. There’s no other way to find a Henry Ford, Nikola Tesla, Thomas Edison, Albert Einstein, and more recently a Bill Gates or a Steve Jobs. They all have a wealth of ideas and the willingness toward innovation in common. And the determination to continue until they created a novel occurrence in the form of a product or idea. Of course, they all failed miserably at first.

But the business communities aren’t the only ones ignoring creativity as a means to success. So are the schools with their “right and wrong” testing. As a college professor, I offer my students a chance to fail an assignment and then succeed at it; I want students learn from their mistakes and correct them. It has always made sense. If in education, why not in training? Why not train a creativity manager for a company or organization? Or, become one yourself.

Be sure to use a “failure resume.” Why not a resume that lists failures and corrective actions (and the bigger picture: what was learned)? List your biggest failures versus achievements. Then, ask yourself, what you learned from those failures. Did those failures, in any way, help you with your achievements–what you are most proud of.

cave-wheel — If we don’t learn from our mistakes…

Is it time for a failure resume?

Yes, according to David and Tom Kelley in their article, “To Find Your Success, Write Your First Failure Resume,” reprinted in FastCopy, an online magazine focused on leadership. This isn’t new idea. Failure theory has been around since the days of the caveman, when it made sense to keep trying to improve their present grasp on rudimentary tool making—the technology of the day. Officially, it’s been around in scientific journals since at least 1870s. You could say it’s paid its dues and earned its place.

Fifteen years into the new millennial era, we are still in the Technology Age–a fertile world for innovation. Even the idea of left brain/right brain determination of creative ability has changed. Current views favor the notion that both parts of the brain contribute plenty, depending on the individual and the type of activity, i.e., artist versus engineer. Creativity flourishes in the face of adversity.

Just as it’s healthy by psychological standards to accept your failures, accept change, adapt and move on, all the while learning from those failures. Failure and our adaptability define us.

Check out these related links. See “A Resume of My Failures,” and “How ‘Failure Resumes’ Can Boost Leadership Development.” You may also be interested in “Einstein’s Big Brain” and Steve Martin’s play, Picasso at the Lapin Agile.

Of course that’s not the end of the story…only the beginning.

Happy Training.

By all means though, check out The Free Management Library’s complete training section.

August 27, 2014April 30, 2022

Rating Training

We're after an improved product. Improper training doesn't do it.Yet, we evaluate our trainers and training in about five minutes. — We’re after an improved product. Improper training doesn’t do it. Yet, we evaluate our trainers and training in about five minutes.

We know training is important to both organizations and employees, yet it is often seen by workers and supervisors as extra work of no real value. It interrupts the workflow. It is the immediately tangible evaluations that become most important.

The effectiveness of training should matter. That’s what we tell ourselves and, yet, we hand out trainer and training evaluations before that training is even over, asking participants how valuable that training was. A bit odd, don’t you think? What we think after a training session or class is often inconclusive and doesn’t always matter. I know that sounds like a fairly ridiculous statement, but please hear me out because it should matter.

Evaluations tell us the impact training has on production or a variety of more mundane but equally important issues that must be repeated per State or Federal law. Why? Trainers in a rush to get the job done, employers aching for results push for participant validation.

Trainers are most concerned about the perceived impact. They believe the real impact will come later. Maybe. Most often, after a training session, participants are asked to “rate” the training.

So, how does someone rate training? Usually by answering questions about how they felt the training was appropriate and/or a useful addition to their work proficiency. Of course, this begs the age-old question: if participants need to be trained, how do they know what is good for them?

Rating trainers is another issue. With each, personality, speaking and presenting ability, and likeability make a difference. Someone can appear too friendly, too relaxed, stiff, snooty, bitchy or arrogant, etc.

leader-glasses — There are always a few trainers (and teachers) who know nothing at the moment, according to some respondents.

True. There are always a few trainers (and teachers) who know nothing at the moment, according to some respondents. While the respondents are being dramatic, I’m being facetious, not sarcastic. We cover a range of talents. It’s nice to think everyone is Grade A.

Maybe the trainers and teachers did know something once and lost it.

I had a teacher, a professor emeritus, a pioneer in his field who had gained worldwide recognition and prominence. He had Alzheimer’s by the time I attended his class; the lectures were odd sometimes, but beneath it all whatever the man said proved his undeniable genius and inspired the class.

Similarly, retired CEOs who take to the road lose their edge at some point. It happens. Listen closely. His or her ramblings may still contain some wisdom. Also, it happens that a trainer may not have given the training assignment sufficient research, analyzed his or her audience well; however deep down they are not ignorant–just mistaken and in the wrong place at the wrong time.

Allotting five minutes to complete the evaluation doesn’t allow enough time for critical thought. Since they received the evaluation request (as it usually happens) before the training is even over, the training session’s value has been minimized by the immediate and unnecessary rush to judgment.

Most of us believe that training should reflect positively on one’s career. Although there are companies that view training as adding to worker credibility or a stepping stone in the company, many still, however, do not. For the companies and organizations that truly value training a worker receives, bravo!

leaderw — The boss is miffed because work isn’t getting done.

They take time out of their already busy day; the boss is miffed because work isn’t getting done; the “why we train” is seldom mentioned and, if it is, employees are suspicious of the organization’s motives regardless.

Still most of the time the process of evaluating training is guesswork. And, that evaluation is always tainted by personal factors. Like mediocre movie or plays, the reviews may be mixed. Positives and negatives cancelling each others.

What if it is a training product? I hate watching videos, taking online quizzes, etc. For me, that kind of training (the kind necessary by law) is a box-filler. The training itself is no joke, but the form diminishes its value. In this case, the training isn’t about delivery skills; it’s about the method.

Is the company trying immediately to see if the training is effective? We all know employees love to train. They take time out of their already busy day, the boss is miffed because work isn’t getting done; the “why we train” is seldom mentioned and, if it is, employees are suspicious of the organization’s motives regardless. I doubt most responses are accurate or totally honest.

Trainees will say anything to get out of the room. If they are truly pissed off, they are likely to give the training or trainer a negative review based on personal prejudice. In order to believe training is or education is beneficial the attitude has to cross personal lines.

Perhaps the majority (the bell-curve part) of trainees feel the training is worthwhile. It may even be documented that the training is necessary or useful, but employees don’t have to like it. Besides, what is the documentation based on? Others may feel the training is worthless and a waste of time if it is not immediately applicable to what they are doing at that very minute in their work tasks. Some training is meant for long-term effects and there is no way to measure it in the short term. Still we fill out the forms.

The reality it seems is that the training, while important, is not imminently as important as the first tangible product. The evaluation.

Happy training.

By all means though, check out The Free Management Library’s complete training section.

Performance Management for any Application: Benefits and Concerns

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15 Other Benefits of Performance Management

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For the Category of Performance Management:

Performance Management for any Application: Performance Appraisal Phase

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Human Resources – Read This Topic First?

Nonprofit-Specific Human Resource Topics

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Field and Roles of Human Resources and Talent Management

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Clarifying Some Terms — Human Resource Management, Human Resources, HRD, Talent Management

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Ask HR-What is it like to work in HR

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Boards and Human Resources

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Future of Human Resources Function

“Talent Management” – New Movement in Human Resources?

MAJOR FUNCTIONS OF HUMAN RESOURCES AND TALENT MANAGEMENT

Getting the Best Employees

Paying Employees (and Providing Benefits)

Training and Developing Employees

Ensuring Compliance to Regulations

Ensuring Fair, Safe and Equitable Work Environments

Sustaining High-Performing Employees

Nonprofit Human Resources

GENERAL RESOURCES ABOUT HUMAN RESOURCES

General Resources About Human Resources

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Best Payroll Software for 2023

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Paychex Flex – Best Payroll Software for Scaling Businesses

OnPay – Best Payroll Software for Restaurant Payroll

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Methodology for the Best Payroll Software

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Conclusion – The Best Payroll Software

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Management):