Continued high resignation rates in California and the need to keep employees off work for COVID-related reasons are creating staffing shortages that are impacting resources for business, large and small. For smaller companies, this staffing shortage is straining employees as they assume more work to keep productivity and customer service standards high. We previously explored how keeping your employees actively engaged can keep morale high throughout the uncertainties of 2021. Engaged, active employees affect the business’ ability to maintain high productivity and customer satisfaction standards. An overall performance management program can help with this goal.
When discussing performance management programs (PMP) most employers think about how to discipline underperforming employees. But an effective performance management program starts before you’ve even hired the employee and should be designed to allow for continued communication between employees and their supervisors throughout the employee’s tenure with a company. When schedules are tight it can be tempting to allow your performance management program to lose its importance. If used consistently, your Performance Management Program will be an effective tool to keep and recruit top performing employees.
Whether you have an underutilized performance management program or need to develop one, below are important factors to consider.
Start with the job description
After you have crafted, or revised, job descriptions, identify position-specific performance goals with objective, measurable outcomes. Clearly written job duties alleviate confusion for the employee and provide a roadmap for each role’s responsibilities. Well-defined, clear performance goals tell the employee what you expect of them in their role.
Defined measurable outcomes is the tool that lets them know if they are meeting those expectations. Final step, make sure both the employee and their manager are interpreting the job description in the same manner. Building in training for supervisors and lines of communication with employees will help ensure everyone is working towards the same goal with the same tools.
Create evaluation methods that meet objectives
Consider how often you want to provide both verbal and written feedback. Formal written reviews are often done at 60 or 90 days, and then annually. The former lets a new employee know if their performance and behavior is meeting your expectations and what they still need to work on. No employee learns everything in 90 days, and you should be providing consistent feedback during this initial phase of employment. This review should be a guide for the employee so they know what to continue working on and what will come next as they settle into their job. The evaluation method you choose should allow you to identify under performing employees before they reach 90 days.
Despite consistent feedback, you may have an employee under-performing so significantly that you believe they will not be able to perform the duties even with additional training. If this occurs, you will have sufficient insight before the problem performance has a serious impact.
Design your annual or mid-year reviews so that they include both performance and professional goals. Performance may be areas that need improvement or getting familiar with more advanced job duties. Professional goals are used to help the employee achieve their next level of success. This can be taking on new responsibilities within their current position or completing certification to advance to the next level. Professional goals should be discussed, and agreed upon, at the time you meet with the employee for their performance evaluations. Establishing a continual pattern of communication between managers and employees facilitates this aspect of performance management. Getting to know your employees, both their performance and what they want to achieve next will help you set these goals. Once goals are set, make sure you and the employee identify resources that can be made available to help them achieve their goals. Next, close the loop by following up to ensure those resources are available and have been utilized.
Use of compensation and incentives
It is more important now than ever before, with the competitive labor market, to correctly compensate employees. Now is the time to check that you are compliant with 2022 wage requirements for both hourly and salaried employees. It’s also a great time to review your current compensation plans and ensure they are competitive. Multi-tiered pays scales can help you correctly align employees in the same role with varying levels of duties and years’ experience. Pay scales can encourage employees to work to achieve more so that they can advance to a higher pay level.
Other incentives should also be considered such as bonuses, a gift card for a job well done and non-monetary incentives like a paid day off.
Effective use of feedback
Managers tend to struggle with giving employees balanced feedback. Make sure any feedback is timely and includes both what they are doing well and what needs improvement. It should be well thought out so that it will help the employee to make needed behavior or performance corrections. Feedback, verbal and written, is important in holding employees accountable for their performance. Feedback should include recognizing and showing appreciation for good performance, creative problem-solving, being a supportive team player, etc. It is important to show employees that their efforts are valued. Don’t be shy about publicly showing this recognition. Based on the circumstance, this can be a promotion, a raise, a gift of appreciation or a simple, public thank you. Whatever you choose to do to praise an employee, be certain that it is specific and sincere. If not, it will be considered to be meaningless.
Summary
It is important to think about and create performance management programs for specific jobs even before hiring employees. Taking a proactive step in the creation and implementation of performance management programs benefits all stakeholders in the business as it is a crucial component in the overall success of an organization.
Remember to start with the job description. Be clear on expectations, identify goals, define and measure outcomes. Ensure evaluation methods meet objectives and that the assigned goals/expectations are attainable. Make effective use of the feedback by remaining consistent and remember to recognize and praise good performance.
Lastly, use compensation and incentives to your advantage. When you offer your employees real benefits they value, you show them you care. This will not only help grow your reputation as a good employer, but it will also boost your employee’s morale and overall job performance.
Feel free to download your copy of our free DIY Checklist for Employers to get you started. If you want us to help with reviewing your existing performance management plan or put one in place for you, remember we offer a free 60-minute consultation.