Ripples stemming from rising commodity prices, the subprime mortgage crisis and concern over a pending recession are spreading throughout the HR community. Although more job seekers might be deciding to stay put due to economic uncertainty, the impact on HR will vary depending upon which industry we work in and our HR function. There is no doubt in my mind, however, that performance management will remain at the crux of efforts to respond to competitive pressure and retain talent.

Finding, retaining and growing top talent remained top priorities throughout last year. Surveys such as The Ken Blanchard Companies 2007 Corporate Issues Survey identified “developing potential leaders,” “selecting and retaining key talent” and “creating engaged workforce” as the three top challenges faced by management. Undoubtedly these issues require a “top notch” approach to performance management. Another survey of approximately 1,500 middle managers outlined in the 2007 report Strengthening the Critical Core uncovered low regard for employers, weak job satisfaction and frustration over a lack of access to job-necessary information on behalf of managers. If these findings are still representative, then HR professionals have their work cut out for them in 2008.

I believe that sound performance management has a role to play to help reduce workplace stressors that seem to be ever-increasing. I don’t know about you, but when I am faced with a stressful situation I usually
1.       Turn to someone I trust to talk about the situation
2.       Clarify what it expected of me and gather all of the available relevant information
3.       Take steps to impact the things that are in my control to work towards a solution or positive outcome

Does this resemble the ongoing performance dialogue between manager and employee? I think so. And many organizations have committed to take steps to improve that dialogue. In a 2006 HR.com survey of 1,031 HR professionals, respondents indicated an intention to improve performance management in the following ways:

•       Building tighter alignment between individual and strategic business goals (68%)
•       Increasing employee/manager interaction and feedback (66%)
•       Clarifying employee performance expectations (65%)
•       Goal setting to improve clarity and objectivity (60%)
•       Producing better quality performance appraisals (56%)

Since I believe that performance management will play an important role in 2008, I am pleased to be involved in The Performance Think Tank and be able to dive into these topics in greater depth. Let’s get the discussion going. How are you looking to improve performance in 2008 and how can your peers help you accomplish this?