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

2. Key Findings
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. Does your organization have a formal employee performance evaluation process?

4.   Does your organization provide voluntary or mandatory training for the performance evaluation process?
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.   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. In your organization, who has direct input into the performance evaluation of the following categories of employees?
Direct Supervisor
Other Management
Employee
Peers
Direct Reports
Customers HR
Others
Senior executive evaluations
(n = 451)
94%
41%
63%
14%
10%
21% 6%
Exempt employee evaluations
(n = 493)
97%
46%
68%
16%
12%
13%
23% 4%
Nonexempt employee evaluations
(n = 486)
39%
58% 9%
19% 3%
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. 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.   Are HR representatives included in all or a majority of these formal calibration or group review meetings?
Note: n = 249. Only respondents whose organizations had a formal calibration or group review process were asked this question.

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.   Which statements reflect the most frequent reasons changes are made to employee evaluations during the formal calibration or group review meetings?
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. Planning to Formally Validate or in Progress Not Formally Validated
Please answer the following questions about the use of the Competency Models performance management process
Does your organization use this practice?
IF YES, has your organization formally validated this practice (e.g., conducted job analyses, survey of job importance with subject matter experts, statistical analyses, formal report or technical documentation)?
Yes No
Formally
Validated
Planning to Formally Validate or in Progress
Not Formally Validated
Organizationwide core competency model (n = 387)
69%
31%
64% 8%
28%
Organizationwide competency models that differ by job level (e.g., executive, management, individual contributor) (n = 387)
61%
39%
67%
10%
24%
Business unit/division/function competency models (n = 358)
45%
55%
56%
14%
Position-specific competency models (n = 383)
51%
49%
12%
32%
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. Planning to Formally Validate or in Progress Not Formally Validated
Please answer the following questions about the use of the Quantitative Performance Metrics performance management process
Does your organization use this practice?
IF YES, has your organization formally validated this practice (e.g., conducted job analyses, survey of job importance with subject matter experts, statistical analyses, formal report or technical documentation)?
Yes No
Formally Validated
Planning to Formally Validate or in Progress
Not Formally Validated
Organizationwide core quantitative performance metrics (e.g., units produced, sales, profit margin) (n = 346)
53%
47%
60% 5%
35%
Organizationwide quantitative performance metrics that differ by job level (e.g., executive, management, individual contributor) (n = 341)
52%
48%
62%
33%
Business unit/division/function quantitative performance metrics (n = 350)
66%
34%
54% 4%
42%
Position-specific quantitative performance metrics (n = 332)
59%
41%
55% 7%
38%
Individual or job-specific performance goals (e.g., SMART goals) (n = 382)
87%
13%
40%
56%
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. 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. 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. Which open positions does your organization post internally?
Note: n = 434. Percentages do not total 100% due to multiple response options.

16. Performance Appraisal Ratings Incentive Compensation Decisions
Organizations that conduct frequent comprehensive (qualitative and statistical analysis) monitoring of compliance with policies related to the following HR processes for each group/department
Performance Appraisal Ratings
Performance Goals
Base Pay Decisions
Incentive Compensation Decisions
Promotion Decisions
Succession Decisions
Local/business unit HR (n = )
22%
19%
32%
25%
33%
26%
Corporate HR
(n = )
21%
16%
34%
40%
24%
29%
EEO or diversity office (n = )
12%
13%
10%
Legal (internal)
(n = )
11% 9% 8%
Legal (external)
(n = ) 6% 5% 4%
Line management
(n = )
15%
17%
14%
Other (n = 37-57) 2%
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. What HR decisions can an employee appeal through a formal process?
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. Demographics: Organization Industry
Manufacturing
25%
Retail trade
15%
Health care and social assistance
14%
Professional, scientific and technical services 9%
Other services except public administration
Finance and insurance
Transportation and warehousing 7%
Educational services 6%
Accommodation and food services 5%
Information, publishing industries 4%
Utilities
Wholesale trade 2%
Mining
Administrative and support ,and waste management and remediation services 1%
Arts, entertainment and recreation
Construction of buildings, heavy and civil engineering construction, specialty trade contractors
Agriculture, forestry, fishing and hunting
Management of companies and enterprises
Repair and maintenance
Religious, grant-making, civic, professional and similar organizations
Personal and laundry services 0%
Public administration
Private households
Real estate and rental and leasing
Note: n = 378. Percentages do not total 100% due to multiple response options.

19. Demographics: Organization Sector

20. Demographics: Organization Staff Size

21. Demographics: Other
Is your organization a single-unit company or a multi-unit company?
Does your organization have U.S.-based operations (business units) only or does it operate multi-nationally?
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%
U.S.-based operations only
29%
Multinational operations
71%
n = 385
n = 387
Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both?
What is the HR department/function for which you responded throughout this survey?
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%
Corporate (company wide)
41%
Business unit/division
39%
Facility/location
21%
n = 377
n = 378
Note: Percentages may not total 100% due to rounding.

22. SHRM/APTMetrics Poll: Workplace Practices
Methodology
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
For more poll findings, visit
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