Employers Don't Test Their Employee Tests

April 6, 2005 (PLANSPONSOR.com) - Employers are using performance plans to measure their employees, but aren't turning a critical eye on the plans themselves, a Hewitt Associates report reveals.

Although 66% of companies in a poll determined pay increases by performance review – and 47% did so to determine bonuses as well – very few organizations are actually testing the test.

Any “tests of the test” that are done seem to focus more on due dates and satisfaction than with correct outputs, Hewitt reported. Many organizations simply measure success by seeing if paperwork is filed on time (44%), while 36% measure the success by worker satisfaction. Thirty percent don’t measure the test’s success at all.

The study also indicates that a vast majority (84%) of companies don’t believe that their employees goals are aligned with overall business goals.

Companies also see problems with manager skill, with 73% thinking that their managers’ ability to get employees to work towards the goal could use improvement; they also think their ability to have effective performance-based discussions and make related decisions (72%) could be improved. Another 67% believe that their managers do a poor job of handling poor performers, and 73% think that their managers are not skilled at putting together high-performing teams.

The poll, by Hewitt Associates, was conducted of 129 major US companies with median net revenues of $2.5 billion.