Four Tools for Performance Management

How well do your employees perform? Do some of your employees always go the extra mile to get the job done right first time, with others only do enough to get by? 

In the current economic climate employers need to work hard to ensure their workforce is engaged, motivated and productive to guarantee the survival of their business without hitting the purse strings and profit margins. 

Larger corporations have many performance management tools at their disposal such as, bonuses, commission payments, rewarding staff, monthly/quarterly meetings, training events etc. Not all of these are effective tools, but if used in the correct way they can be powerful. 

Performance Management tools do not need to be complicated or costly, but do require commitment. A small employer can take a few simple steps to ensure their employees are working in alignment to the core business objectives.

• Set Objectives - these need to be SMART; Specific, Measurable, Achievable, Realistic with a set Time scale. You can both agree these by looking at the employee's job description and your business's core objectives.
• Ensure Employee Involvement - Ensure that the Performance Management is a 2-way conversation and you set realistic goals and objectives. Listen to what they have to say, their realistic goal may not be the same as another employee's. Look at their strengths and play to them. This is also where you will be able to identify a training need and more support if needed.
• Schedule Follow Up Appointments - These can be monthly or quarterly, depending on what you have agreed in your SMART goals. Depending on the size of the business, there are usually held with the Employees Manager, however it may be that the owner or director needs to take the meetings. If regular review meetings are not held, the whole system breaks-down which may lead to even poorer performance and then the need for dismissal which is hard to implement if the Performance Management has not been implemented and adhered to properly.
• Annual Review - this should happen 12 months after the initial meeting. As there have been meetings throughout the process, there should be no surprises. If the employee has performed well and achieved their objectives then they should be recognised and rewarded. However, if poor performance has continued despite training and additional support, then the employer may decided to start dismissal proceedings. Due to the performance being managed and the opportunity has been given for improvement, this would be a justified dismissal.

By addressing performance issues in your workforce and creating a transparent and structured workplace by following the above steps, it will result in your business employing individuals who are motivated, engaged and productive which will help your business thrive and grow. 

If you need any help or support with Performance Management, please do not hesitate to get in touch with Lunar HR.