Performance management programs--keys to success By Karen Codere The words “employee performance” often strikes a chord of dissatisfaction among supervisors and employees, especially during a down economy when employees are struggling to find enough work to meet expectations, while employers are scrambling to find ways to reward top performers. The annual employee review becomes a huge weight looming over supervisors and employees, as countless hours are spent completing paperwork—usually at the last minute. Employees expecting a review are often pushed aside as more important tasks come up, leaving the employee with feelings of neglect. As a result, when the meeting between supervisor and employee finally takes place, the room may be filled with negativity, anxiety and fear. What should have transpired as a positive and productive experience may result in a situation in which both sides leave feeling defeated. It may come as a shock to many employers, but the yearly employee appraisal is not the only component to performance management. It is actually the last task in what should be an ongoing, year-round process. Properly managing the performance of an organization with a well-executed plan can help companies achieve their goals and retain valuable employees. Maintain up-to-date job descriptions A good job description clearly explains the company’s expectations for a position. But it should be more than just a list of statements; it should include goals. This important document must continuously be updated to reflect the current situation and future possibilities. Today’s goals are going to be different from last year’s, or next year’s. It is important to redefine and broaden responsibilities, particularly when more opportunities arise. A job description can serve as a helpful retention tool for valuable employees who may want to carve a career path in the organization. Align jobs with company goals Too often, businesses overlook the importance of aligning employee job functions with the company’s goals. But it is counterproductive for employees to work toward something that is not in sync with the company’s current objectives. When external factors may be forcing managers to make hard decisions, it is critical to take a closer look and determine how the roles of each employee can help the organization achieve its objectives. Establish and review milestones Putting everything on paper and only evaluating it once a year can be futile. Supervisors and employees should work together to create a plan and review it periodically throughout the year. Adjustments should be made when appropriate, but more importantly, supervisors should help employees determine the best approaches to reach milestones. Coach employees Companies that cultivate a coaching environment understand the positive impact this management style can have on employee morale. During uncertain times, when employees are concerned about holding onto their jobs, supervisors are relied upon more than ever. This includes soothing fears and helping employees determine how to achieve the level of performance the company expects. Invest in training and development Many organizations underestimate the value that training adds to achieving performance goals. Updating job skills and acquiring new ones can help employees perform at higher levels and bring new skills to the table. Supervisors can also benefit by learning how to engage employees and help keep them on track with their goals. Provide continuous feedback Effective, two-way communication between employees and supervisors is critical to everyone’s success. Long gone are the days when a supervisor spoke and the employee simply listened. Providing regular feedback and candidly addressing concerns and ideas can build a more productive work environment. An open dialogue also can help clear the air and pave the way for an effective performance appraisal with no hard feelings and a clearer perspective on expectations. When executives champion performance management, it can have a powerful influence on the organization. Updating employees on the company’s overall goals and providing encouragement along the way can be inspiring. Reward top performers Most employees want to perform their job well, and rewarding employees who meet or exceed company goals can be a strong motivator for the entire company. Unfortunately, many supervisors don’t always commit to this philosophy. For example, the 2005-2006 Strategic Rewards survey conducted by Watson Wyatt and WorldatWork reported that, while 92 percent of programs are designed to link pay to performance, only 79 percent of employers said their managers are moderately or greatly effective at putting these programs into practice. In addition, 52 percent of employees surveyed indicated their managers tie pay to performance. Employee trust and motivation are more difficult to achieve when supervisors do not hold their end of the bargain. It is not very encouraging to employees who work hard to achieve goals when the company does not follow through on the promised reward. However, if the company is experiencing an economically difficult year and cannot afford to reward its outstanding employees, supervisors should communicate this to employees sooner than later. It is critical for supervisors to be open and honest, and stay true to their words, especially when it comes to gaining employee trust and retaining valuable workers. The benefits of a well-implemented performance management program can have a significant impact on any sized business, including: • Improved productivity. • Potential increase in revenue. • Higher employee retention. • Improved client satisfaction. • A more cohesive organization. A strong performance management program also can help companies stay ahead of the competition and achieve short and long-term goals. Defining performance criteria, updating and revisiting goals, ensuring ongoing communication and rewarding top employees can help propel an organization to surpass its own expectations. Karen Codere is a senior human resources specialist with Administaff. For more information about Administaff, call 800-465-3800 or visit www.administaff.com.

Posted on Thursday, September 24, 2009 (Archive on Thursday, October 01, 2009) Posted by jstoltz  Contributed by jstoltz

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