Employee Performance Management For Better ROI
Employees are the backbone of an organization, which is why attracting tech talent that is the very best is paramount. Successful companies are built by employees who care and are invested in what they do, contributing to the growth of a business. When employees are unhappy with their roles, productivity falls and growth plateaus and even shrinks. The SHRM and Brookings Institute found that in most companies, the total human capital costs average to nearly 70% of operating expenses. That’s a huge amount, so finding ways to keep employees happy, reduce churn and encourage growth should be top of the list.
Using an employee performance system keeps track of where your strengths and weaknesses are, and ensures your employees are working at their full potential. Most companies use one, though they are generally thought of as time consuming and not productive. Workers can think of it like a box ticking exercise rather than actually providing decent outcomes. If you’ve reached this point then it’s time for an overhaul.
Attracting tech talent and keeping them
Once you have spent time and money recruiting top tech talent, then it’s time to work on training them and ensuring they stay with you. Getting the processes right means much more than just ticking boxes, it’s ensuring workers are being developed and their output is high.
There are different types of performance management systems:
1. Annual evaluation
This will be familiar to many people. This is the traditional method for analysing performance where workers typically fill out a questionnaire or form that goes into detail about their performance over the past year. It drills down into whether goals have been met and achieved, what has happened to prevent goals being met and more. Employees will be asked to provide proof of meeting their goals. Managers meet with their team individually to give their feedback on work and goals being met. It’s not always the best scenario if there are ongoing issues between managers and workers. Performance reviews are often inaccurate as information is lost, distorted and changed over time.
2. Ongoing evaluation and feedback
This approach is being adopted by more and more companies to promote continuous employee development. It works in that it encourages employee motivation, which in turn will impact on productivity. Workers don’t have to wait a whole year for their next performance review, instead it’s part of ongoing work. There’s less anxiety around it and creates a feedback loop. Always make sure your feedback is timely rather than waiting a week, month or year.
Best HR practice
Adobe decided to change the ways they measured performance. Managers found the annual performance review too slow and negative, and it demotivated staff. They changed it to a check-in system, an ongoing conversation between managers and employees. The results were brilliant, with greater efficiency, engagement and retention.
Ineffective systems are costing too much money. What employee performance management systems do you need? Assess what your employees and managers must have to be able to do their jobs successfully.
1. List out expectations
This is one of the key things to do. Both you and your employees know what is expected of them and how they can reach these goals. Keep them clear and attainable. Let them know what support is available to help them achieve these goals.
It cannot be emphasized enough how important it is for managers to talk to their team members and vice versa. Managers should communicate how the job description translates into every tasks, how their work contributes to the overall success of the business and what behaviors are expected of them. Once workers have the layout of the land, they will be much more secure and happier in their work.
Instance or timely feedback can motivate employees. People are motivated to be productive when they believe their contribution is valuable. Currently, only one in five employees believe their company leaders motivate them. The rest aren’t engaged in a meaningful way. Daily feedback can motivate employees and increase their output by three times.
4. Check in
Regular check-ins to monitor performance is the way forward. Managers encourage workers to take responsibility for their actions and in return, managers can let them know how they’re getting on. Issues can be quickly addressed and problems solved quickly. Let them feel supported as they move towards the targets set, help them get engaged with the company and feel part of the success. Employees who are invested in their role and the company will achieve great things.
Ditch annual appraisals
Employee performance is crucial to the success of any company. Profits and productivity can be easily measured, so track them against employee performance. Optimize your internal systems and boost employee morale.
Talk to us about how to source, employ and keep your employees.