Performance management is a critical business process, yet it’s an area identified as needing improvement in many companies. A recent study of 50,000 employees working for 22 global corporations showed that more than half felt their employers’ performance management systems were not effective.
How can you ensure that you don’t fall into this category? The answer lies in striking the right balance between effective program design, committed leadership, and engagement at all levels of your organization.
Here are seven tips to bolster the effectiveness of your performance management system:
Make Sure You Solidify Key System Elements
The best system starts with a thorough goal-setting process, followed by regular feedback and appraisals. It also:
- Identifies employees’ developmental needs.
- Includes a robust reward and recognition component.
- Encourages collaboration, teamwork and communication.
The ensuing six steps are based on this structure – and will help move your system from theory to practice and ultimately, enhanced business results.
Allow Employees to Self-Assess
At the same time a manager completes their performance appraisal, give employees an identical form and have them assess themselves. While you may think an employee would downplay their liabilities and weaknesses, often the opposite is true. People tend to be more critical on themselves than others are. Employee self-assessment opens communication lines and allows the manager to more easily discuss any differences between the two perspectives.
Garner Feedback from Multiple Sources
Rather than limiting performance appraisals to an employee’s direct supervisor, include others who interact with the individual on a regular basis. This lends a wider depth and breadth and paints a broader overall picture of each individual. Others who may be involved are:
- Customers and/or clients
- Departmental and executive-level managers
- Team members
Communicate with Employees
Help each individual understand how their performance impacts the company’s overall vision. By letting employees see the “big picture,” you give them a sense of purpose and empowerment. This helps enhance morale, build loyalty, and drive productivity.
Provide Ongoing Growth Opportunities
Use your performance evaluation as a catalyst to exploration of employees’ training and development needs. By doing so, you can identify areas that need improvement and help each individual to increase their skills and knowledge. Specific deficiencies pinpointed during an evaluation can be corrected to get employees back on track.
Link Evaluations to Compensation
Ensure that employee performance evaluations are directly linked to compensation, reward and recognition. This provides a fair system for administering pay raises and bonuses. Knowing that their future income is based on performance is a powerful employee motivator.
Implement Talent Discussions
Following employee evaluations, hold “talent discussions” with involved parties. The objective is to look at what workers are doing well and identify opportunities to continue developing them.
Talent discussions benefit:
- The employee – because people above and beyond their supervisor are made aware of their performance and skill set.
- The company – as it helps leaders help their employees continue to grow and flourish in their careers.
To learn more about how you can leverage performance management to your company’s competitive advantage – as well as other strategies for continued workforce success – read our related posts or contact the expert team at Employment Professionals Canada today.