1. SHRM Poll: Performance Management and Other Workplace Practices December 15, 2011 In collaboration with APT Metrics.

2. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 Key Findings 2  How many organizations have a formal employee performance evaluation process? The vast majority (98%) of organizations reported that they had a formal employee performance evaluation process. Training for this process was required of people managers at nearly one-half (46%) of organizations, while the other nearly one-half (44%) provided voluntary training. Just under one-half (47%) of organizations required people managers to support all performance ratings with written behavioral examples.  Do organizations have a formal employee performance evaluation calibration or group review process? More than half (54%) of organizations reported having a formal calibration or group review process to ensure consistency across ratings/reviews, and of those, 61% reported that HR representatives were present and actively participated in all or a majority of these meetings.  Are organizations using competency models and quantitative performance metrics? The majority of organizations reported using both competency models and quantitative performance metrics, and many of these organizations indicated they had formally validated these measures.  Are diversity goals and policies tied to management incentive pay and business strategies? While more than half (59%) of organizations reported they formally and specifically tie diversity policies and programs to business strategies, less than one-quarter (22%) indicated that they tie managers’ incentive pay to the achievement of diversity goals.  How often do organizations monitor compliance with HR policies? Organizations reported that they regularly conduct at least spot checks to monitor compliance with policies related to performance, compensation, promotion and succession decisions. This monitoring was conducted most frequently by the local/business-unit HR and corporate HR.  Can employees appeal certain HR decisions through a formal process? Many organizations have appeals processes in place for HR decisions related to performance, compensation, promotion and succession decisions.

3. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 3 Does your organization have a formal employee performance evaluation process? n = 510

4. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 Does your organization provide voluntary or mandatory training for the performance evaluation process? 4 Note: Percentages do not total 100% due to rounding. Only respondents whose organizations had a formal employee performance evaluation process were asked this question.

5. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 5 Are people managers in your organization required to support their performance ratings with written behavioral examples as part of the formal performance evaluation process? Note: n = 481. Percentages do not total 100% due to rounding. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations had a formal employee performance evaluation process were asked this question.

6. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 In your organization, who has direct input into the performance evaluation of the following categories of employees? 6 Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations had a formal employee performance evaluation process were asked this question.

7. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 7 Does your organization’s performance evaluation process involve a formal calibration or group review process to ensure consistency across ratings/reviews within a group (e.g., unit, department, division)? Note: n = 463. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations had a formal employee performance evaluation process were asked this question.

8. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 Are HR representatives included in all or a majority of these formal calibration or group review meetings? 8 Note: n = 249. Only respondents whose organizations had a formal calibration or group review process were asked this question.

9. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 9 How often are employee ratings changed in formal calibration or group review meetings? Note: n = 242. Only respondents whose organizations had a formal calibration or group review process were asked this question.

10. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 Which statements reflect the most frequent reasons changes are made to employee evaluations during the formal calibration or group review meetings? 10 Note: n = 236. Percentages do not total 100% due to multiple response options. Only respondents whose organizations indicated that employee ratings were changed “infrequently” or “regularly” were asked this question.

11. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 Please answer the following questions about the use of the Competency Models performance management process 11 Note: Percentages may not total 100% due to rounding. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations had a formal employee performance evaluation process were asked this question.

12. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 Please answer the following questions about the use of the Quantitative Performance Metrics performance management process 12 Note: Percentages may not total 100% due to rounding. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations had a formal employee performance evaluation process were asked this question.

13. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 13 Does your organization tie incentive pay for management to the achievement of diversity goals? Note: n = 382. Respondents who answered “Don’t know” or “Not applicable” were excluded from this analysis.

14. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 14 Does your organization formally and specifically tie diversity policies and programs to business strategies? Note: n = 381. Respondents who answered “Don’t know” were excluded from this analysis.

15. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 Which open positions does your organization post internally? 15 Note: n = 434. Percentages do not total 100% due to multiple response options.

16. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 Organizations that conduct frequent comprehensive (qualitative and statistical analysis) monitoring of compliance with policies related to the following HR processes for each group/department 16 Note: Percentages do not total 100% due to multiple response options. Respondents who answered “Not applicable” were excluded from this analysis. Only respondents whose organizations had a formal employee performance evaluation process were asked this question. Percentages represent “5 = frequent/comprehensive (qualitative and statistical analysis) monitoring” responses from the following scale: 0 = none, this group does not have this responsibility; 1 = minor/occasional/random checks (qualitative checks only); 2 = regular/general spot checks (qualitative only); 3 = regular/general spot checks (statistical only); 4 = regular/general spot checks (qualitative and statistical); 5 = frequent/comprehensive (qualitative and statistical analysis).

17. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 What HR decisions can an employee appeal through a formal process? 17 Note: n = 305. Percentages do not total 100% due to multiple response options. Respondents who answered “Don’t know” or “Not applicable” were excluded from this analysis.

18. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 Demographics: Organization Industry 18 Note: n = 378. Percentages do not total 100% due to multiple response options.

19. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 Demographics: Organization Sector 19 n = 376

20. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 Demographics: Organization Staff Size 20 n = 367

21. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 Demographics: Other 21 U.S.-based operations only29% Multinational operations71% Single-unit company: A company in which the location and the company are one and the same. 3% Multi-unit company: A company that has more than one location. 97% Multi-unit headquarters determines HR policies and practices 38% Each work location determines HR policies and practices 1% A combination of both the work location and the multi-unit headquarters determine HR policies and practices 61% Is your organization a single-unit company or a multi-unit company? Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both? Does your organization have U.S.- based operations (business units) only or does it operate multi-nationally? n = 385n = 387 n = 378 Corporate (company wide)41% Business unit/division39% Facility/location21% n = 377 What is the HR department/function for which you responded throughout this survey? Note: Percentages may not total 100% due to rounding.

22. SHRM/APTMetrics Poll: Performance Management & Other Workplace Practices ©SHRM 2011 SHRM/APTMetrics Poll: Workplace Practices  Response rate = 11%  Sample composed of 510 randomly selected HR professionals from SHRM’s membership who worked in organizations with 2,500 or more employees.  Margin of error +/- 4%  Survey fielded August 22-September 12, 2011 22 Methodology For more poll findings, visit www.shrm.org/surveyswww.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Researchhttp://twitter.com/SHRM_Research