In many SMEs, effectively dealing with performance management should be one of the highest priorities, which can be difficult. Conducting consistent and balanced performance appraisals is one of the foundations to implementing an effective performance management program.
As a Manager or Business Owner, another key aspect is to ensure your employees are receiving adequate recognition in exchange for their hard work and that they are being appropriately rewarded for their efforts in the workplace.
The employee’s awareness of the performance management process is critical for its success. We have compiled a list of 3 important steps for effective performance management within a company which are listed below:
1. There can be inconsistencies between the management teams approach and how the how the employees perceive the appraisal process. Quite often you will find the exercise and significance of performance management can be misinterpreted by staff and will not resonate within your team. For the process to be a success, your management team needs to teach their employees to view the system as constructive and not as a low-priority activity. There should also be a periodic assessment of employee perception towards your performance management processes.
2. Many performance management tools in companies are under-utilised; a performance management process should be viewed as such, rather than an isolated event. Your team should view it as much more than a yearly meeting to discuss employee performance often referred to as an appraisal. In order to remain relevant, performance management processes need frequent modifications and adjustments, and should be carried out on a monthly basis using transparency and positivity as the forefront of your intentions.
3. The entire performance management system is related to positivity for both parties: the employer and the employee. Performance management will not work where positive outcomes for the company are continuously sought without giving positive outcomes back to the employee as an individual who has been working hard to achieve the goals for the company. The company cannot be seen to be benefitting from the scheme whilst offering little reward for employees continued efforts. An effective performance management system must allow for positive growth of individual employees, as long as their outcomes are aligned with company objectives. This works both ways; the individual should not be experiencing personal benefits while the company is not receiving the financial benefit from the employee’s hard work.
We have an exceptional online performance management system that uses Key Performance Indicators (KPIs) to track employee performance and implement rewards where they are due. Click here to learn more.