The Performance Management Needs of Today

It is a fact of life that everything is in a constant process of change. The way we used to live 30 years ago is different to the way we experience and live life today. The same goes for work and the way people experience and perceive work today as opposed to in the past.

Generation Y are distinctly different from their parents. To them, a job is a part of their life style, something that they want to identify with.  A job is no longer just about making a living.

Performance management today should actively quantify your staff’s results while also motivating them. It should encourage them to achieve more by providing greater freedom and responsibility, fostering their commitment. Commitment and loyalty among staff are major challenges for businesses today. These are crucial goals that HR specialists should work hard to achieve.

Good performance management starts with hiring the right candidate which is challenging but also crucial as you can imagine. When looking for the right candidate, ensure the job description is clear and concise. It should highlight the key competencies, knowledge, abilities, and skills required for the role.

It will help candidates know at first glance whether they are a match and consequently whether to apply at all or not. This will hopefully keep the number of applicants down to the most suitable ones.

Getting the right person is step number one to retaining people. If the person is right for the job it will be easier both for them to get what they want out of the job (and thus feel happy with it) and for you to benefit from their potential.

Goal/Objective Setting

It is very important that the overall objectives of the business are clarified at the very beginning. People often feel frustrated when they don’t fully understand their job objectives, which usually stem from the overall objectives of the business.

If your firm has a documented business plan in place setting out its measurable goals and objectives, this should also feed into department or team plans. Referencing Key Performance Indicators (KPIs) rooted in your firm’s strategic plan clarifies business objectives. It helps everyone in the firm better understand how these objectives relate to their roles.

People should be able to see the purpose of what they do and how it fits into the big picture. Making sure that people understand what the goals of the business are and how their personal efforts are part of the picture is a must. When people gain that understanding and they know how they contribute, they will be much more committed to the job.

Measuring Performance

As mentioned in the beginning, measuring performance is only part of performance management today. It is however very important for two reasons.

First of all, measuring performance helps measure progress. We’ve all heard the saying that ‘What gets measured gets done’. This is particularly true in a work or business sense. You need to know where you are headed and how far you have come along the way at any point. That is why, it is really valuable to sit down and revise your goals and your progress on a regular basis. And if the goals of your business are SMART (specific, measurable, attainable, realistic & time-related) measuring the results should be no problem.

Second, measuring performance also measures the effectiveness of the strategies utilised by the employee to achieve the goals and objectives set in the beginning. Thus, when measuring the results you also measure their approach. This means that you can reward people not only for their results but also for the initiative they’ve taken which will in turn increase their dedication.

Employee Feedback and Ongoing Coaching

As workplaces become increasingly informal, the freedom of  people to make suggestions, express ideas for improvement and opinions grows more and more important.

Having that freedom and seeing their ideas in action makes people feel that they are more a part of the success of a company and hence part of a company they want to identify with.

eBay uses a number of methods such as a pulse survey which enables employees to give candid, anonymous feedback to management on their day-to-day experiences in the workplace. Managers not only strengthen their own skills and effectiveness but also address employees’ concerns.

Google recognises the increasing trend to allow employees freedom in their jobs to be creative and entrepreneurial. This might mean the employee taking a risk to try out a new idea or approach in the course of their work. Managers might then need to suggest how to tailor this to ensure its success. In this way, they recognise their contribution to the firm’s growth and success.

Quarterly and Annual Performance Reviews

As well as ad hoc feedback, quarterly and annual performance reviews should be formally arranged regularly during the year. Both employees and managers should prepare for this meeting and use previous reviews or performance discussions as the framework for the meeting.

In many performance management systems, an employee fills in a pre-appraisal form that outlines their objectives for the following year. These should be discussed, expanded upon, and agreed at the performance review. These should be measurable and trackable and tie in with the organisation’s objectives.

Training and Development

For a large number of employees, the opportunity for training and development is one of the perks of a job. It means that they can gain new skills and learn something but also that you appreciate them enough to invest in their development. The realisation of this fact increases employees’ commitment.

Training and development programs and personal development plans should be designed to address the gaps between the knowledge, skills, and abilities required and those displayed by the employee.

In an interview for Forbes earlier this year, Virgin’s founder Richard Branson said: “If you take care of your employees they will take care of your business.” It is not secret that putting employees first has been the company’s strategy for a long time now.

Thus it is important to note that the effect of training and development is two –fold, firstly it helps your business because people will do their jobs better, and secondly they are likely to me more loyal and dedicated to your company because of the opportunities they’ve been given to learn.

Tackling Negative Issues

Nobody likes to be faced with problems. Yet, problems are a part of life and of business too. However negative a situation may seem, keep in mind that you can always learn from it and turn it into a positive one if you know how to address it so that it motivates people in the end of the day.

You should be prepared to deal with negative situations, as they inevitably arise, but also make the best out of them. Imagine an unpleasant incident has happened where an employee behaved in an inappropriate way. When talking to them be sure of your facts and avoid being emotive, personal and judgemental.  Unless you have witnessed the behavior yourself, avoid references to hearsay.

You should ask questions, rather than launching into criticism that will immediately put a person on the defensive. Corroborating and discussing the incident will show employees you’re being fair and allow them to explain their side of the story. Offer an alternative type of behaviour that should replace the employee’s undesirable conduct, having clearly described its effects. Remind the employee that their behaviour is the problem, not them as a person.

Negative feedback will be most effective when it is timely, so managers need address the issue as soon as possible. Ideally this would be immediately after the behaviour or incident takes place.

Keep in mind that your goal is not only to resolve the issue at hand but also motivate employees. That being said, when giving negative feedback always try to apply the so-called Sandwich strategy: first you make a positive comment, then you give negative feedback and you finish off on a positive note. By explaining how the employee is usually competent in other areas and thus valuable to the business for example, you can empower them to improve their performance after your meeting.

Recognising Positive Performance

Recognising the efforts of your employees is essential. One way of doing that is through different incentives such as bonuses, days off, awards such as ‘employee of the month’ etc.

Another is through supporting your employees’ career development aspirations by providing guidance and keeping them aware of the promotion prospects. Have an informal chat on a regular basis with your employees to discuss the opportunities and how you could help them in terms of trainings, funding for these, etc.

Be aware of the fact that monetary compensation is important as people expect it when they do well in their jobs. However and despite that, keep in mind that whatever you offer, whether in financial terms or not, failing to acknowledge their results out loud will inevitably decrease their motivation. Make sure to say ‘well done!’ and if possible acknowledge their achievement so that everybody in the company knows.

It goes without saying that an effective performance management system relies on good communication. Employees who receive regular advice and assistance in their work will be happy in their jobs. Happy employees increase client satisfaction as well as profits. With the right performance management system, a business of any size can achieve their goals in the same way as the largest multinationals.