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The MAKING CHIPS Podcast for Manufacturing Leaders with Jason Zenger & Jim Carr

Welcome to MakingChips - We believe that manufacturing is challenging, but if you are connected to a community of leaders, you can elevate your skills, solve your problems and grow your business. Making Chips is a weekly podcast that will EQUIP and INSPIRE MANUFACTURING LEADERS to succeed in the challenging world of manufacturing. Our mission is for the METALWORKING NATION to Think Differently About Manufacturing In Order to Elevate their Game. Your hosts, Jason Zenger & Jim Carr, own manufacturing businesses and interview other leaders in the metalworking, machining, fabrication, tooling and machine tool industries. We have interviewed successful manufacturing CEOs you may have not heard of and also the biggest names in manufacturing like Titan Gilroy from Titans of CNC, John Saunders from NYC CNC, Mark Terryberry from Haas Automation and others from MakerCast, Sandvik Coromant, Autocrib and more. Think of us as your virtual community of manufacturing peers to help solve your toughest problems and grow your business. "Making Chips has provided a transparent approach to sharing within the manufacturing community and a modern platform to do so. Thank you both for taking the lead on moving our industry segment forward!" Patricia Miller - CEO & Visionary (Matrix IV) I really think what you guys are doing is a great, great thing for manufacturing. I have learned so much already from many of your episodes, and am so thrilled to have met people that get as revved up about manufacturing as I do! Cassandra Haupers – Vice President of Operations (Swiss Precision Machining) I love being able to experience what manufacturers are doing to promote culture and engage their team members and community. All of us are smarter than one of us. That is why I am part of the Making Chips tribe. Barry E. Walter, Jr. – Chief Operating Officer (Barry E. Walter, Sr. Co.) Finally, relevant manufacturing media that is actually entertaining! Dietmar Goellner – Chief Executive Officer (Advanced Machine & Engineering / Hennig) The more manufacturing companies we can get to think this way, the stronger our industry will be. Thank you for sharing! Jess Giudici – Manager, Talent and Culture I’m thankful to you for creating MakingChips for the Metalworking Nation so that Owners / Employees can strengthen their companies. Phil Sponsler – President (ORBITFORM) I love the podcast! It really serves to fill a void in the manufacturing world. I will admit I always feel a little more inspired. Jason Falk – Senior Application Engineer, CMTSE (HURCO) Thanks to all the great info on your podcasts and the website. Dave Lechleitner – Director of Solutions and Product Marketing (KEYEDIN) I really love what you guys are doing to advance the mfg industry in a way that really reaches the right audiences. Jeff Rizzie – Senior Manager-Business Development (Sandvik Coromant)
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Jul 22, 2015

Why are employee annual reviews a bad idea?

 

It’s not the idea of having a meeting with employees that’s a bad idea, it’s the verbiage we use to describe what is happening. An “annual review” or “evaluation” has a top-down implication that puts the employee in a helpless and often defensive posture. They are going to be evaluated, rather than a much more positive approach that could enlist the employee in their own performance improvement. In this episode of Making Chips Jim and Jason speak again with Karla Dobbeck, a Human Resources specialist who is focused on the manufacturing industry. Karla shares her preferred approach to what she calls “Proactive Discussions” that actually get the employee involved in their own evaluation and improvement to create a winning team across the board.

 

Do you know what questions to ask during an employee review?

 

First, did you notice we said, “questions to ask” rather than “things to say?” A successful proactive employee discussion should be couched in terms that encourage employee interaction and show great interest in the employee’s well-being and future. You don’t want to grill your employees or make them leave the conversation feeling scolded or critiqued. You want them to leave feeling helped and motivated toward improvement. That means you’ve got to show interest in them and their approach to the work they are doing by asking questions. That approach has a greater chance of creating a win-win situation for everyone. Find out what kind of questions you need to ask in your annual reviews… oops, proactive discussion - on this episode of Making Chips.

 

There are two types of conversations employers need to have with employees - and they are not only done annually.

 

Do you know what they are? Do you know why you should shoot for having them more than annually, like a typical “annual review?” Here they are - performance conversations and behavioral conversations. What’s the difference? Let’s start with the behavioral conversations:

 

Behavioral - These are talks you have with employees about specific behaviors they are guilty of that need correction or modification. Examples could be use of phones on the shop floor when it’s prohibited, or an apparent refusal to comply with a certain usage technique on a new machine. With behavioral conversations you need to talk about the issue when it arises.

 

Performance - These conversations are planned conversations where you as the employer are being proactive to address the employee’s performance, positive as well as negative, for the sake of coaching them to greater levels of accomplishment and competence. Performance discussions should be introduced a few weeks ahead of time so the employee can come prepared for the talk, and should be done regularly - perhaps annually, but preferably more often.

 

Never center your proactive discussions with employees around money

 

The typical annual review contains a significant amount of discussion of salary, raises, etc. But when you’re making the move to these new style proactive discussions, you want to have conversations about money completely separate from the performance discussion. The point of the proactive discussion is to coach, consider options, and draw the employee into their own career advancement path in a deliberate way. You want them involved in thinking through the ways they can become an even greater asset to the company and how they can build their own skill set to put them in a place where other opportunities can open up to them. Find out why Karla Dobbeck, Human Resources Specialist, recommends you keep money-talk out of the annual review in this episode of Making Chips.

 

Be careful about giving “bonuses” to your employees

 

Karla Dobbeck recommends that you find other ways to reward employees besides the typical “bonuses” that are a part of the annual review conversation quite often. Why? Because there are negative legal and tax implications to giving bonuses that you may not be aware of. If you want to motivate better performance as part of your proactive conversations with employees, find other creative ways to do that. Bonuses could bite you in the end. Find out more about the negative consequences of giving bonuses and what Karla recommends as alternatives in this episode.

Outline of this episode

 

  • Welcome to this episode of Making Chips - THE Podcast to equip manufacturing professionals!

  • Jim’s proactive search for new equipment - what and why.

  • Proprietary materials Jason has discovered from Thyssen Krupp (sponsor).

  • Introduction of Karla Dobbeck, Human Resources Professional and Specialist.

  • The headaches and benefits of acronyms.

  • Why Karla doesn’t like the “grading system” of Employee Evaluations (she doesn’t like to use the words “evaluations” or “review.”

  • How to approach these proactive discussions - 3 to 4 weeks ahead and at the time of the discussion.

  • The types of questions to ask during one of these discussions.

  • How to partner with the employee to create a plan to improve an employee’s performance.

  • Why Jason’s approach is not an “annual review” type discussion - and how Karla responds to his approach.

  • How to start on a better road to employee relationships with you, their employer.

  • The two types of conversations employers should have with their employees: performance and behavior.

  • Why these conversations should NOT be centered around money (salary increases, etc.).

  • Jason gives a real-life type scenario for Karla and Jim’s responses - what to do?

  • How bonuses fit into these discussions and the legal implications of bonuses.

  • How to leave comments on this episode.

 

Links mentioned on this episode

 

http://www.OnlineMetals.com (sponsor for this episode)

 

Karla Dobek’s website - http://www.askhrt.com/

 

www.MakingChips.com/contact

 

Or call us at 312-725-0245

 

Tweets you can use to tell others about the episode

 

Nobody should come into the workplace and have their job done to them - Karla Dobbeck http://www.MakingChips.com/?p=578

 

#Employers are responsible to #coach and #equip their #employees in an ongoing manner http://www.MakingChips.com/?p=578

 

Why you should not talk about #money in your #EmployeeReviews http://www.MakingChips.com/?p=578

 

Why #AnnualReviews are not a good idea - on this episode of #MakingChips http://www.MakingChips.com/?p=578

 

The two types of conversations #employers should be having with #employees regularly http://www.MakingChips.com/?p=578

 

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