Figure 1 Future State Current State Gap Migration Plan Performance reviews will not go away, but the emphasis shifts toward bottom-up feedback recognition and rewards. Some budget will shift from annual merit increases and bonus compensation to more frequent, event-specific rewards. Some aspects of traditional talent management will become crowdsourced. Current State Many organizations do not think they do the pay-for-performance process well. There is evidence that pay-for-performance programs do not lead to increased performance. Workers often do not view the performance review process as fair, and find it demotivating. Managers and executives frequently do not provide good , consistent feedback in a timely fashion to workers. Gap Workers who have a voice in recognition and rewards will feel the process is fairer and more motivating. Recognition and rewards will be less dependent on manager quality. Migration Plan Test a social recognition program alongside the traditional pay-for- performance process. Adjust the balance between formal pay-for- performance and social recognition programs annually.

Figure 2 2015 2014 2013 2012 2016 Test a social recognition program Timeline indicates when to begin 2015 2014 2013 2012 2016 Test a social recognition program Quantify the impact on the performance of the program Improving performance Motivating workers Adjust the social recognition program Adjust investments in pay for performance versus social recognition Continue to adjust the investments and the programs annually Improving ROI in workers Adapting to change Drivers