Performance Punishments: What They Are And How To Avoid Them

Introduction

• Speaker: Niki Jorgensen, Director at Insperity's service operations
• Focus: Understanding performance punishments, their implications, and how to avoid them in organizational settings.

Common Scenarios in Performance Reviews

• Scenario 1:
  • Employee receives high praise in yearly reviews.
  • Not ready for a promotion but receives more responsibilities.
• Scenario 2:
  • Employee struggles with core competencies.
  • Receives fewer responsibilities to focus on skill development.

Understanding Performance Punishments

• Phenomenon: Top performers are given more work without additional compensation or title change, known as "quiet promotion."
• Impact:
  • Increases stress levels.
  • Potentially harms productivity.
  • Could lead to increased turnover if top performers leave.

Strategies to Avoid Performance Punishments

1. Develop Skills Throughout the Year

• Consistent Feedback: Regular feedback should prevent surprises during yearly reviews.
• Continuous Development: Assign skills development activities and connect employees with learning resources.
• Benefit: Keeps top performers engaged and helps lower performers improve.

2. Assign Work Fairly

• Balance Workload: Avoid overburdening top performers; aim for equitable work distribution.
• Team Collaboration: Pair top performers with those needing skill development.
  • Benefits: Allows for mentoring, skill-sharing, and balanced workload.

3. Communicate Expectations

• Promotion Clarity: Ensure top performers know the path to promotion.
• Open Culture: Encourage transparency about career ambitions and potential opportunities.
• Managerial Role: Managers should offer leadership development opportunities and advocate for deserved promotions.

Conclusion

• Manager Awareness: Recognize and prevent performance punishments to avoid employee alienation.
• Organizational Growth: Through skill development, fair work distribution, and clear communication, promote individual and organizational success.