Survey after survey has shown clearly that employees are more concerned about being valued for what they do than how much money they make. In fact, their pay comes in far down the list on almost all employee surveys. The clear message to be learned in these surveys is that employees want to hear feedback on their performance. The very best way to accomplish this is with a well structured employee performance review program.
In order to best provide a well structured employee review program we need to decide what is critical about their job performance and what is not. When we talk about what is critical about their performance we are referring to those tasks that an employee performs that make a big difference to our business. As an example, if our employee is a sales representative their customer service skills are critical as opposed to their ability to answering internal employee emails.
Developing an acceptable rating system is another crucial piece of your well planned employee review program. It is important that you don't try to take the easy way out by using a system that only determines whether the employee either meets or doesn't meet your expectations. Employees hate this type of rating system because it offers no real feedback on their performance. As a reminder, we began this article by providing information that employees want to feel appreciated. Using a rating system that simply determines they are either meeting or not meeting your expectations will fall short of this.
The grading system used in most schools is a very effective system and therefore our performance review ratings should be designed to model that. As a reminder, that system was a tiered system that rated someone either outstanding or somewhere less than that. The most successful tiered systems will consist of five rating elements. Those elements could be as simple as an A equaling outstanding to a B, C, D, and F equaling unacceptable. You will quickly see that employees really like this type of employee rating system and their performance during the year will show they are striving to achieve something better than an average rating.
The last decision you will need to determine is if you will include any type of salary increase to the rating an employee receives from their supervisor on their annual performance review. Employees will be motivated to perform at their very best during the entire year in order to in order to receive a better pay increase. Once you tie a pay increase to the rating you provide an employee this will come with the risk of a supervisor not being fair and objective. This means it is very important that you have objective performance measures and not subjective, for instance the employees ability to handle cash efficiently.
If your company is seriously trying to appreciate the employees it is important that you give a lot of thought about how to implement a well thought out employee performance review program. As we can see above we can accomplish this in a variety of ways so that the employee is appreciated and our company benefits also. A well thought out program can strongly influence productivity and reduce employee turnover in a big way. There is no question that poor employee retention hurts a business. Having said that, this is a victory for all!
In order to best provide a well structured employee review program we need to decide what is critical about their job performance and what is not. When we talk about what is critical about their performance we are referring to those tasks that an employee performs that make a big difference to our business. As an example, if our employee is a sales representative their customer service skills are critical as opposed to their ability to answering internal employee emails.
Developing an acceptable rating system is another crucial piece of your well planned employee review program. It is important that you don't try to take the easy way out by using a system that only determines whether the employee either meets or doesn't meet your expectations. Employees hate this type of rating system because it offers no real feedback on their performance. As a reminder, we began this article by providing information that employees want to feel appreciated. Using a rating system that simply determines they are either meeting or not meeting your expectations will fall short of this.
The grading system used in most schools is a very effective system and therefore our performance review ratings should be designed to model that. As a reminder, that system was a tiered system that rated someone either outstanding or somewhere less than that. The most successful tiered systems will consist of five rating elements. Those elements could be as simple as an A equaling outstanding to a B, C, D, and F equaling unacceptable. You will quickly see that employees really like this type of employee rating system and their performance during the year will show they are striving to achieve something better than an average rating.
The last decision you will need to determine is if you will include any type of salary increase to the rating an employee receives from their supervisor on their annual performance review. Employees will be motivated to perform at their very best during the entire year in order to in order to receive a better pay increase. Once you tie a pay increase to the rating you provide an employee this will come with the risk of a supervisor not being fair and objective. This means it is very important that you have objective performance measures and not subjective, for instance the employees ability to handle cash efficiently.
If your company is seriously trying to appreciate the employees it is important that you give a lot of thought about how to implement a well thought out employee performance review program. As we can see above we can accomplish this in a variety of ways so that the employee is appreciated and our company benefits also. A well thought out program can strongly influence productivity and reduce employee turnover in a big way. There is no question that poor employee retention hurts a business. Having said that, this is a victory for all!
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