When not working, performance management can be disengaging to colleagues and an administrative burden for managers. Create a high-performance culture by aligning each stage of the performance and rewards process to your talent strategy. Performance management needs to reflect your firm's unique culture.
Our McLagan research shows that 62% of financial services firms are planning to change their approach to performance management.
Performance Management Matters
Performance management is in a sad state today. Managers think of it as an administrative burden, it disengages employees, leaders wonder if it’s worth the hassle, and HR is on the receiving end of all the complaints. If headlines are true, it is no wonder we’re often asked what other firms are doing and how to help managers to effectively coach employees.
Our McLagan Performance Management Practices Study highlights three trends in the industry:
Firms are assessing the purpose and effectiveness in accomplishing the goal of performance management and redirecting the process from one-time events to ongoing management.
Conscious of time and effort spent, firms are looking for lighter-touch solutions, but are being thoughtful about significant changes.
The current regulatory focus on conduct and culture is leading firms to introduce behavior and value assessments with closer alignment to pay otucomes.
Solutions for Financial Services Firms
Our solutions have been developed in direct response to the challenges we hear that financial services leaders are facing.
Leaders in financial services are asking:
- What are other companies doing to re-imagine performance management?
- How do we balance regulatory requirements with best practices?
- How do we transform performance management from an administrative chore to a business-driving process?
- Clear and compelling performance management philosophy and strategy design
- Program design
- Pay and performance alignment
- Technology advisory and support
- Manager capability training and tools
Effective Performance Management Strategies
Getting performance management right requires a holistic approach – today more than ever. Siloed thinking leads to sub-optimal design and unintended consequences. Our consulting brings expertise in talent process design, compensation, HR technology, and change management. We combine all of this together seamlessly, providing end-to-end design and implementation support. Here’s what we know works:
- Clarify the purpose
- Align to your talent philosophy and culture
- Simplify and streamline
- Differentiate and make the tough choices
- Develop and make it an ongoing conversation
- Execute with intention
Why McLagan for Performance Management?
We help our clients define a clear and compelling performance management philosophy and strategy. We partner with clients to design a performance management program and align pay to performance. To support clients with a lasting strategy, we provide technology advisory and support and manager capability training and tools.