08. Using Performance Review

Even with incentives, organizations must be sure that low performers do not offset productivity gains. The PEP employee performance review module is designed to prevent this from occurring. This is accomplished by identifying poor performers and initiating a three-stage retraining and probation program. In addition, unacceptable temporary workers are listed to prevent their future use, and high performing temps are highlighted for possible hiring. How are you using employee performance review?


  1. Jack - Toys R Us says

    I have a question. We developed our engineered standards based on an average associate working at 100% pace. Should we expect that an associate can achieve 100% personal performance? We want to hold our associates to meeting 100% of their goal. We have 40% of associates beating 100% performance and our current floor to begin coaching is 90%, we want to raise the floor to 100%. Is that the right thing to do? Your insight would be appreciated.

  2. Don - Cook & Associates says

    Some additional information would help me give a professional opinion about your performance review procedures. Perhaps we can get together and review the overall program. Some of the issues include:

    (1) Are you measuring an employee’s total day by integrating the work measurement data with payroll hours?
    (2) What technique was used to set the standards?
    (3) Are you intending to pay incentives?
    (4) When you say employees need to be working at 100%, does this mean for the last week, last month, last 100 hours of measured work, etc.?

    Based on the statistics you provided, I can recommend, however, that you start the coaching at 80%. This should let you concentrate on the very low performers. Once you get them up to speed, you can always change your coaching algorithm to 90%. I would think in the long run your goal might be for everyone to be at 100%, but your minimal level for employment should probably be set at 90%.

    Hope this helps.

  3. EJ - Nordstrom says

    When it came to PEP, one of my duties as Corporate Human Resources Director was to develop a program that would let our managers work with the employees to be sure they remained above minimum production level goals. Initially this meant looking through reports each week to identify employees who fell below these minimum levels. Fortunately, Cook & Associates came out with a new release a couple of years ago that automated the entire process and included a great program for monitoring an employee’s progress. This really had significant impact on our productivity levels with just about every low performer being retrained and eventually reaching an acceptable productivity level.