The complexities of managing this emerging, dynamic workforce and the accompanying labor pool are the diverse needs and aspirations of the people behind the numbers.  I predict that many will find happiness in their new roles and will want to grow with your organization.  Others are already working on consulting projects and/or planning new businesses during their spare time.  There will be others that will try to find happiness in both worlds (with your organization and on their own).  The result will be something more complex than just managing across generations and inherent skill sets; it will mean finding the right plan and approach down to the individual level.

We will witness $80K – $100K professionals “bump” down in pay to $12.00 an hour in non-exempt jobs.  They will be working for a young professional manager that may possess less education, credentials, and experience, but will have to be managed nonetheless.  The challenge in this example is two-fold: What are the goals and aspirations of the individual and just how is your workforce equipped to deal with these employees?

Just as complex, there will be “survival employees” (for lack of a better term for now), that will find pleasure and perhaps discover a “second wind” in their new career/job.  Why?!  Because some of these employees will enjoy the challenge of starting again and moving into roles with considerable impact in the future.  Thus the question:  What does your succession and career development plans have “mapped” for such a scenario?

It doesn’t end there.  You will witness “survival” employees that will bring their egos with them.  Perhaps being accustomed to dealing with what they consider peers – How will your organizational structure respond to an aggressive employee that brought their ego with them – AND – may be a productive employee in one regard, but present challenges in another as they seek to reclaim a life that has since passed (at least in the interim)?

I could go on-and-on about the challenges that HR and other organizational leaders will face: These challenges will include professionals coming out of functional roles that they may have worked in for ten years or greater and adjusting their skill-sets and talents to roles that may require greater technical competence and less managerial skills in the short term.  How is your organization prepared to deal with these employees?

The answer may be in what I call Succession-Career Planning 2.0 and take my word, it will not be a handful of employees, but millions of people when all is said and done.  The challenge for all business professionals in all sectors is to be prepared to welcome these employees, leverage their talents consistent with strategic and tactical objectives, and assess individual needs consistent with organizational requirements.  Sounds easy?!  It will be one of the greatest challenges we will face as HR professionals.  And if you think succession planning is lip service now and are frustrated by leadership’s casual interest in the concept – just wait.  It will be even more challenging and the result may result in lost productivity, under-utilized talent, decreased (or increased) morale, increased (or decreased) cost per-hire, and training challenges.

Your ‘New Economy Survival Employee’ in many cases is going to want to set the world on fire – perhaps.  In other cases, he or she may just be along for the ride looking for something new.  Now is not the time to gloss over the fact, but to plan now for the long-term impact this may have on your organization.  This subject of course is worthy of it’s own work and I am confident that in addition to myself, many other business professionals and HR researchers, consultants, and professionals will write works, observe/share best practices, and excite leadership with the perils and possibilities that will come.  I, for one, am researching and interviewing both employees and leadership that are experiencing this – so more to follow.  However, here are some quick things to think about (and perhaps act upon) now in this new order:

1) Evaluate your recruiting function: Because we find ourselves in a “new world order” operating under “old economy” rules, many competent professionals whose talents, skills, abilities, and competencies will be left out.  On the other side (and extreme), there will be professionals that possess impressive professional backgrounds and credentials, eager to work.

2) Plan for the Career Ladder:  Even if you think the “survival employee” may only be with your company in the short run as he or she gets “back on their feet;” my prediction is that many of these employees will see a challenge.  What are your plans for a highly competent professional that takes a “survival job,” in the short term?  Are you poised to offer a career path?  Is the career path realistic?  Can you engage this hire, so that they see the value in both the short and long-term?

3) Prepare for the Generational-Economic Cross Divide:  Here is where your college intern turn manager and/or your young superstar is managing, in greater numbers, older and accomplished professionals.  What leadership skills are you equipping your young leaders with, so that they are “set up for success?”  How will they handle the new, former superstar that not only may be looking at their supervisor’s job, but beyond.  It’s a common occurrence that will become more common and your young leaders must be able to deal with these employees that will come in greater numbers – and will be hired.

4) Drilling-Down Succession Planning:  The biggest weakness and challenges of succession planning, in my opinion is that not only is it not executed near the levels as we are fascinated with the concept, but it does not go deep enough.  Your new, former high-success/high power superstar, entry-level “survival employee” is going to want a road map – especially if they like their jobs.  The competitive nature and stability in which they seek from their career/job will force you (hopefully) to not only “shore-up” your succession planning, but perhaps go-deeper into the organization to find your next high-pos.

5) Organizational Culture Meet Organizational Discovery.  Have your leadership and front-line supervisors discuss the possibilities for the organization in both the short and long-term for the “survival employee.”  What will be the new perception of not only an older employee – the ground work and law stands as a guide in that case – but, for the older, experienced and highly credential employee within your organization?  Will there be a supportive, firm, stable, inclusive environment in which the “survival employee” can perform?  How about an employee that meets all the aforementioned criteria and is perhaps moving from a middle marketing position to entry-level/mid-level, non-managerial administrative support position?

In the end, the challenges and opportunities, as previously mentioned, are too great for a single post.  Yet, it is something that we should think about.  Many already know that I view the current concept of Talent Management and the accompanying Succession Planning with a slight distaste because in the end, it does not go far or deep enough. So however you want to term it is not the issue – just how far you will go to take advantage of the new workforce that will be left as a result of the economic fallout (or crises if you’re real doom and gloom) should start with you.

Don’t blink.

Considering all the factors above, my argument-opinion is simple: Performance Reviews-Appraisals are not your enemy.  The performance review-appraisal process cannot and should not become the scapegoat reason for delaying performance feedback nor management’s resistance to utilizing it as a legitimate performance management tool.

Having read opinions that stretch across the spectrum on this issue, the point is that the primary issue with performance reviews/appraisals is the planning that goes behind the process.  The performance review-performance appraisal process, as a component of performance management, should be an essential ingredient in setting and managing expectations within your organization; and, if we, as HR-Business leaders, think that condemning the process is “an out” then my message is ” that dog won’t hunt.”  Such protests are merely excuses to not fully develop and refine the process, so the easy out becomes to blame the tools utilized versus the more accurate inability to employ a robust and effective performance management system.

So the question becomes, “How can we make it better?”  How can we employ our organization’s performance review-performance appraisal process in a method that works consistently and receives the creditability needed to contribute to individual development and delivery of organizational goals and objectives.  Here are some quick – very quick – ways to make it work:

1) Know the desired outcome of the incumbent position.  When we think of performance appraisals,  many managers quickly think, “How will my employees stack against each other?”  However, you must remember that the role of the performance appraisal is to measure the incumbent’s performance against defined outcomes measured carefully against developed performance standards,  position objectives, and the job analysis product the job description, captured by senior managers/leaders and job analysis functional specialists – clinical psychologists, during the workforce planning process.  The standards set forth in performance reviews-appraisals are, but should not be measured against a nominal employee that exceeds the standard(s) – at least, arguably, initially.  In essence: Performance standards are initially defined during the larger strategic planning-mapping process (again, workforce planning) and/or doing scheduled reviews – ideally.

2) Capture concrete performance objectives and consistently communicate these objectives to employees.  One of the (justified) continued complaints against HR is lack of concrete measurements and performance objectives despite all the evidence that demonstrates increased value creation when concrete performance and properly aligned objectives are defined and executed upon. The lack of clearly defined performance objectives are not confined to HR.  Line managers, senior leadership and HR must share in the responsibility and work in answering the question, “Just what constitutes non-satisfactory, satisfactory, and superior performance?”  Capturing specific job performance measurements within the performance appraisal itself may work; however, it is not necessary and may make your forms dated.  Instead, ensure that job incumbents know the definition of performance success (or failure) and when objectives are considered met in quantifiable language supplemented by specific work instances ((I personally recommend that time consistent job performance measurements be captured and supplemented by current (and flexible) positional performance objective criteria defined during through the workforce planning and/or workforce review processes) .  However captured, ensure that objective measures are communicated consistently to your workforce down to the individual level with formal-informal milestones suggested below.

3) Offset compensation performance measures with ethical performance measures.  The most common example of this is of course the banking and financial industries and how conflict often occurs when up-sales are not being made, loans are not being processed, or insurance products are not being sold.  However, to blame this on performance measures is not taking responsibility for adequately developing the very thing being complained about.  Performance measures tied to compensation such as merit or incentive pay, should have an ethical dimension to the performance factor, reminding employees that their ability to meet or exceed performance goals is not to be done at the expense of legal requirements and ethical considerations.  Though some advocate that incentive pay, merit pay, gain-sharing, etc.  should not be attached to performance standards, this misses the point that the linkage of the two are often necessary to adequately measure performance. The decision rests with senior leadership; the context through with such goals are interpreted are translated via the organization’s culture.  In other words: If your organization makes the decision to include monetary product-service levels within performance standards, your cultural tone will define at what lengths employees will take to achieve those standards, ethically and legally.

4) Remember that performance-appraisal reviews are a part of the process and not the process.  Here is where many managers lose sight of knowing the purpose of performance appraisals.  Performance appraisals are one of the tools at management disposal within the larger (and hopefully well defined) performance management process.  If you’re waiting until the six- and twelve month points to let employees know where they stand in meeting performance objectives then the performance appraisal nor the employee are your enemy – you are.  It is your role as an HR-Business leader to ensure that your professional peers and subordinates understand that High Performance Work Systems – in which HR processes play a critical role – includes a well-executed performance management process that is  consistently communicated, and that employee performance management is an on-going process. One of the most effective ways to accomplish this is to provide performance feedback that exceeds organizational requirements.  Thus if there is an annual/semi-annual formal performance review process, you should look and consider a quarterly feedback process that not only comments on performance, but shows how the job incumbent-employee can improve or sustain required performance.

5) Shared goal-setting – the often forgotten, proven benchmark. As professionals we read and may even directly observe-participate in effective goal setting against developed performance objectives; however, we often forget the effectiveness of accomplishing this in a systematic way – perhaps it is missing within the guidelines of managing the performance management process. However, when employees are empowered to help shape the goals that contribute directly to job requirements and performance objectives, the increased acceptance and legitimacy of the performance review process is increase.

There are supplementary measures and techniques individual to organizations that have proven effective.  Just remember what works for one organization, may not work for your organization.  The debate continues and will continue on the most effective among these techniques, which include separating salary discussion from performance reviews, providing peer-incumbent input “accomplishments” to formal performance reviews, and validating performance reviews through a two-party formal review process that often includes the direct supervisor and work-team-functional supervisor (as one example).  In  the end, it is my belief that all these may prove effective to a specific organization; however, are not effective for all organizations.  And that’s my key point: Your performance review-appraisal process must be consistent with your organizational culture.  If you have an open culture with free-flowing communication and a team-based atmosphere then peer validation and accomplishments may be warranted.  In contrast, matrix organizations and/or organizations where direct reports are separated geographically and/or direct observation is limited by the direct supervisor then the two-party review process may be warranted.  Is it fair to rank?  The answer to that question resides within your organization, your organizational culture, your performance criteria, and your process in which you promote and retain employees.

In conclusion, remember know this: The performance-appraisal review is not the problem (nor your enemy or scapegoat).  The problem is in the proper and relevant design, delivery, management, and execution within the larger context of your organizational performance management process that is the problem and that’ something and that’s something you can control.