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Sample Outputs of WorkRelationships' Interpersonal Risk Management System for Company X

Industry: Technology

Employees: 800

Situation: A CFO of a mid-sized, high growth tech company initially contacted WorkRelationships' because of the results of an in-house employee satisfaction survey and 360-degree management evaluation. In particular, he was concerned about his technical managers' apparent lack of interpersonal skills; while his company had an extensive management training program, it tended to focus on technical skills rather than interpersonal abilities. The results of their in-house survey indicated that, in general, employees perceived their technical managers to have trouble delegating, to avoid dealing with poor performers, and to have marginal communication skills. He was also concerned about the potential liability the reluctance to address performance/conduct problems could have on the organization, particularly the implications for wrongful discharge claims. What he said he needed was a measurable way to evaluate and increase his technical managers' management skills and reduce wrongful termination liability.

The Interpersonal Risk Profile: At the CFO's request, the VP-HR completed the Interpersonal Risk Audit. Consistent with the in-house survey, the Interpersonal Risk Profile identified performance management as the primary risk area for this company. In particular, the Interpersonal Risk Profile indicated that managers were not being taught the performance management skills to effectively communicate performance expectations, give appropriate performance evaluations, and address performance problems. It also suggested that employee retention was being adversely impacted by new technical managers' lack of interpersonal awareness and tendency to focus on technical rather than managerial tasks.


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The Consultation: During the follow-up phone conversation with the VP-Human Resources, a primary concern was how to translate the performance management risk area into tangible management training needs. As a result, the WorkRelationships' consultant recommended that company's managers complete the Interpersonal Risk Assessment for Managers to determine which specific performance management skills were lacking and to determine training priorities.


Technical managers' training needs: Results of the Interpersonal Risk Assessment for Managers revealed significant skill deficits in areas including motivating employees, clearly communicating performance expectations, managing teams, conducting the performance appraisal process, and counseling poor performers. A positive outcome of the management training needs assessment results was that virtually all of the technical managers already viewed these skills as critically important and were acutely aware of the need to become more effective leaders, particularly after receiving their individual results of the IRA-M.

 
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Results:
At the company's request, WorkRelationships designed a customized 3-day interpersonal management development program to supplement their technical skills development program. This 3-day program was followed up with 3 months of online coaching and a 1 day follow-up. Results at 3 and 6 months revealed a significant increase in employee satisfaction and 360-degree evaluation ratings. In addition, because of the increase in the technical managers' coaching skills, 1/2 of the previously poor performers had progressed to a satisfactory level of performance.


ROI: Company Y, with their performance management problems, had a gap between the productivity of high producers and poor producers. They estimated that their high producers were earning revenues of $200,000 while their poor producers were only earning $40,000 a year. When entering these numbers in the calculator it was determined that bad hires were costing the company $13,400,000 and that by implementing WorkRelationships recommendations they could save $852,727 per year.
 
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