Through careful measurement of employee performance, businesses can evaluate current performance and can administer clear development plans to encourage employees to work towards a promotion.
This benefits both the business and the employee. The business obtains the skills needed to ensure success and the employee can clearly identify the strengths and weaknesses in their performance, as well as any gaps in their knowledge and skills. In the average business there will be those employees who are happy to carry out the duties of their role and there will be the employees who are exceptionally talented and often go above and beyond their call of duty.
With proper performance management, businesses can retain, develop, and encourage flourishing talent, which is of benefit to both the business and the talented employee. All businesses need a productive workforce. Employee productivity is often a key factor in achieving business goals and objectives.
Without proper performance measures in place, there is no quantifiable method of analysing and assessing productivity. Closely measuring and analysing productivity allows businesses to set reasonable goals and expectations, identify and reward those that are highly productive, and provide a platform for the development of those who are underachieving. Productive employees are the lifeblood of every recruiting business, but how do you assess their performance levels?
Do they understand your goals and expectations? Are they meeting their personal objectives? Every company should continually monitor and evaluate their employees; here are seven easy ways to quickly gauge performance and ensure your firm is on the right track:.
Punctuality: Employees who regularly arrive late for work or are frequently absent from the office are unlikely to be meeting their performance objectives.
The underlying issue needs to be addressed here — have they received adequate training? Do they get along with their co-workers and manager? Issues with punctuality mean an employee is not doing their job to their full potential and a negative attitude may also be affecting their colleagues. Quality of work: The timely completion of projects to the desired standard is a key indicator in measuring employee performance.
Is the work being carried out average or outstanding? Are they committing maximum effort to projects? Is their attitude affecting their ability to meet your expectations? Do they understand their personal performance objectives? The answers to those questions will help you to understand the root causes of any problems. Effective performance management systems typically include the following three broad elements: goal setting, performance review and a performance improvement process.
Employers may use a multitude of options in the execution of the performance management process, but an effective system will incorporate the three basic elements in some form. Goal setting is a process of establishing objectives to be achieved over a period of time. It is the performance criteria an employee will be evaluated against.
Performance goals for individual employees should ideally align with organizational goals. Finally, effective goals should be participative. Both manager and individual should be involved in the development of goals to ensure understanding and commitment.
Goals should be documented, available for review, managed on a continuous basis and acknowledged. Goals should be flexible enough to account for changing conditions. See Setting Goals and Objectives Training. Performance review is the process of assessing an employee's progress toward goals.
Strengths and weaknesses of all employees are recorded regularly so that the organization can make informed and accurate decisions regarding an employee's contribution, career development, training needs, promotional opportunities, pay increases and other topics.
Performance review and evaluation involve the objective and subjective consideration of how to measure and evaluate employee performance results.
Rethinking Stale Performance Management Practices. Ratingless Reviews and Pay Practices. Regardless of the type or format of the selected method to review an employee's behavioral and work expectations, clear definitions of each level of performance must be provided. Raters should be provided with examples of behaviors, skills, measurements and other performance factors to assist them in evaluating an employee.
Several types of performance review systems are in common use. Each system has its benefits and drawbacks. Regardless of the review system used, a variety of common rater errors exist.
HR should take the lead to train managers on recognizing and ameliorating their effect on the system. Common errors include:. The use of a performance improvement plan PIP can range from employees who may be new to a role or who are unclear on performance expectations to employees who are regularly falling short of meeting performance expectations and whose performance may necessitate the beginning of a progressive discipline process regarding the performance level.
The document used to guide the process is a critical tool as it helps facilitate performance discussions, records areas of concern and ways to correct them, and serves as legal and decision-making documentation. The format of the PIP will vary by employer and should include the following components:.
A statement regarding expectations for sustained or consistent performance should be included to ensure that true performance improvement has been attained. This documentation may also prove helpful in protecting the employer should performance fail to meet expectations and should further disciplinary action need to be taken. If the PIP is part of a progressive discipline process that may eventually lead to termination of employment, language in the document should specify that termination is a possible consequence of failure to meet expectations and that it may occur with or without the employee's signature on the PIP.
The employee should clearly understand the consequences of not meeting the goals outlined in the PIP. An organization's leaders may believe that their performance management system is functioning as it should. However, as with any system of business practices, employees' perceptions and experiences with it may be very different.
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