TM - February 2008 - (Page 40)

recruitment & retention assessment & evaluation compensation & benefits performance management learning & development succession planning Generational Differences Require Customized Performance Approach Peter A. Cohen In the television series “Mad Men,” which portrays the workplace of the early 1960s, not only are the cosmetic details accurate — the men wear hats and narrow ties, and they indulge in martinis at lunch — the portrayal of a Madison Avenue advertising agency brilliantly captures the workplace of that age. Few elements of this bygone workplace are familiar today. Among the most visible difference is today’s workforce often includes five generations — from baby boomers to the millennial generation — each with different attitudes toward work and career. In addition to these demographic changes, the workplace has become much more competitive. Companies are more likely to compete with firms from around the globe, and these firms are often composed from a dispersed group of specialists who collaborate electronically while working out of their spare bedrooms. How do companies manage talent in this more diverse and challenging environment? How do they motivate and retain great people? And how do they manage them to compete successfully in a more competitive market? One answer lies in the performance management space. Luckily, there are many fundamental principles of managing people and conducting effective performance management activity that do not change over time. The difference is how those fundamentals are applied and the urgency with which companies apply them. Consider the following examples: 1. Performance management is best when it’s an ongoing process, not just an annual review. It requires regular feedback from managers. Younger workers may be more comfortable with feedback that tracks progress against their goals via a Web-based application, while other workers may prefer a more traditional lunch with their manager. It’s hard to imagine there’s much performance value to any generation of workers if all they get is an annual “meets expectations.” 2. Performance management needs to be relevant to the business. A set of individual performance objectives should make clear how those objectives contribute to the success of the business, for all generations. No one will actively embrace a system that involves only administrative tasks irrelevant to the business. 3. Performance management needs to be connected to compensation. In other words, performance matters. There may be generational differences in the specific kind of compensation that’s most attractive — educational benefits or a greater stake in the company via profit sharing or stock options — while others prefer compensation in the form of a bigger paycheck. 4. Performance should be connected to career planning and succession planning. All generations want to see high performance recognized and know that their organization takes an active role in helping them develop to their greatest potential. Employers need to ensure feedback on performance segues into a personalized development plan, one that encourages the employee to contribute information about his or her capabilities, achievements and aspirations. 5. Performance management requires ready access to all relevant performance-related information. This is more difficult these days, given greater mobility in organizations and more broadly dispersed organizations. Further, different generations may have different preferences about how this information is made available to them or how they provide it. But for managers and employees to get the most from the relationship, quick and centralized access to basic information, including objectives, evaluations, career goals and compensation, is essential. The workplace has certainly changed significantly over the last 50 years. It’s doubtful there will be a return to the white shirts, narrow ties and martini lunches of the early 1960s. But there are some universal truths that still apply. Companies that can adhere to them while accommodating a more diverse workforce and the different preferences of multiple generations will have more success in attracting, retaining and motivating high-quality talent. Peter A. Cohen is vice president of product marketing for Authoria Inc. He can be reached at editor@TalentMgt.com. 40 talent management magazine www.TalentMgt.com http://www.TalentMgt.com

Table of Contents Feed for the Digital Edition of TM - February 2008

Talent Management - February 2008 Editor's Letter - Talkin' 'Bout My Generation Contents Human Performance - Achievement Motivation: Top Talent At Any Age Leading Edge - Who's On First? Foundations - Managing the Next Generation Workforce Viewpoint - Talent Strategies That Work Are Talent Strategies That Stick Those Who Have Left: The Value of Building Employee Relationships Alternatives to 360s: The Manager's Role Compensation and Benefits For X&Y Build A Multigenerational Performance Management Strategy Development's Role in Creating A Culture Of Inclusion Tomorrow's Leader: Identifying the Next Generation Integrating Talent Management Systems Strategically Seagate Uses Yearlong Evaluations to Help Integrate Talent Efforts Western Union: Connecting Strategy and People Globally Advertisers' Index Editorial Resources Full Potential - The Best Time to Change? Right Now!

TM - February 2008

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