Booming in the Millennium
To say the world is
undergoing a huge economic restructuring might be an understatement.
Shifting demographics are one of the key factors driving this
change. The U.S. economy has grown at an annual rate of around 3.4%
adjusted for inflation over the past 50 years (BLS). An important
factor in achieving that pace of economic growth has been an
increase of about 1.7% annually in the supply of workers.
The Baby Boomers who drove consumption for nearly four decades are
now reaching retirement age. Boomers are leaving, taking decades of
experience and intellectual property with them. As they do so, many
are concerned with having enough money to support a comfortable
lifestyle. The millennia workforce will need a 21st century
management system, because it is not only younger but different by
sex, race, and ethnicity. This workforce is motivated by a different
world view. This more diverse workforce force will demand a variety
of benefits, a flexible work schedule, clearly defined opportunities
for growth and advancement and of course a competitive pay plan.
Now this brings us to an interesting question, What is the purpose
of the pay plan? I personally agree with Robert Heneman, who says,
“The ultimate goal of the pay plan is to align the goals and
interests of the employees with the goals and interests of the
organization. Sadly, as I have frequently observed, performance
management systems and line of sight bonus schemes are a blunt stick
at best. They are rigid structures based on short time results at
best and “finger in the wind” opinion polls at worst. See my earlier
blog, “Perfecting Performance Appraisal Tools" for more details.
Those in management will have to approach the system in a different
way. It will have to be one that creates a culture of achievement,
not entitlement. Such a system replaces blunt stick technology with
managers tools ensuring employees know exactly what they need to do
to excel by fully supporting the organizations goals and objectives.
This may sound like a dream; it is not. Read on.
workforce management includes:
- Ensuring performance standards are clearly defined in each
employee’s job description.
- Performance standards are measurable and prioritized according to
their impact on Westar’s strategy, goals and objectives.
- From the first day on the job each employee knows exactly what
they must do each day to drive success.
- Innovation targets are identified encouraging staff to stretch
beyond current job requirements.
- Targets encourage employees to increase their skill
certifications, initiate and complete money saving ideas or take on
- Areas of personal
conduct are provided to ensure professional standards are
Appraisals provide management with accurate measurement of
job-specific performance for each employee. They work best when
equipped with a “Human Factors” rating scale enabling management to
develop effective coaching strategies targeting specific skill and
motivation affecting overall performance.
Coaching and development are a part of each manager’s role and
responsibility. Many managers are unfamiliar with coaching
techniques, as they have not received professional training. A
structured coaching worksheet linked with the “Human Factors” rating
scale will provide managers with a road map to developing successful
coaching strategies for staff at all levels of performance.
Tracking and documentation are made easy with online employee logs
and performance dashboards. Each manager has their own console
representing their direct reports. The employee log allows managers
to create personalized category folders to record individual
achievement, discipline, training, vacation and sick leave among
Pay increases and rewards are earned. Managers maximize results and
rein in costs by providing staff with high value (financial and nonfinancial) incentives. In essence, employees are rewarded for
demonstrating exemplary performance, goal achievement, skill
advancement or successfully implementing approved innovative ideas.
Rewards interlock with daily work efforts and Westar’s key success
factors enable managers to drive change at every level within the
Performance dashboards provide managers with graphical information
related to performance goals, key performance indicators or employee
log entry by person, position, and department, or between
international counterparts. Dashboards enable managers to review
data graphics from each folder or combination of folders. Managers
routinely measure, monitor, and analyze the effectiveness of the
workforce as never before. With these tools, management drives
strategy and contains costs -delivering sustainable value to
customers and shareholders alike.
With a well-trained workforce and Performance Path® technology there
is no need for forced compliance as each person recognizes the
importance of his or her contribution. Individuals and colleagues
work together with a sense of commitment and shared fate.
Shareholder value is a measure of personal fulfillment as much as a
financial result. In a corporate culture motivated by achievement,
there is spontaneous innovation, constant cooperation, and you hear
the laughter of people dreaming, achieving, and having fun.
Article © Copyright 2010 Performance Path ® LLC. All Rights