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.
A very important aspect of a well thought out performance review program is separating out what is absolutely necessary about their position versus what isn't. The absolutely necessary elements of an employee's performance are those tasks that can hurt the business if they are not performed well. For example, a sales clerk's ability to relate to a customer is far more important than their ability to communicate via email with other employees.
Determining what type of rating system you will use as a part of your employee review program is equally important. It is critical that you don't take the easy way out by using a pass or fail system. If you do you will quickly discover that employees are not going to be satisfied with this type of review system at all. Referring back to how we started this article we learned that employees are more concerned with feeling appreciated. Using a pass or fail system will not meet your goal of showing them appreciation.
One of the most effective employee review rating programs will be very similar to those we had when we were in school. If you remember back that system consisted of several ratings and was designed to go from exceptional to unacceptable. Most systems will consist of five ratings and they could begin with five which represents the best to four, three, two, and one being the worst. Almost every employee will truly appreciate a review rating system like this and it will create a lot of incentive for them to perform better during the year to receive a better 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!
A very important aspect of a well thought out performance review program is separating out what is absolutely necessary about their position versus what isn't. The absolutely necessary elements of an employee's performance are those tasks that can hurt the business if they are not performed well. For example, a sales clerk's ability to relate to a customer is far more important than their ability to communicate via email with other employees.
Determining what type of rating system you will use as a part of your employee review program is equally important. It is critical that you don't take the easy way out by using a pass or fail system. If you do you will quickly discover that employees are not going to be satisfied with this type of review system at all. Referring back to how we started this article we learned that employees are more concerned with feeling appreciated. Using a pass or fail system will not meet your goal of showing them appreciation.
One of the most effective employee review rating programs will be very similar to those we had when we were in school. If you remember back that system consisted of several ratings and was designed to go from exceptional to unacceptable. Most systems will consist of five ratings and they could begin with five which represents the best to four, three, two, and one being the worst. Almost every employee will truly appreciate a review rating system like this and it will create a lot of incentive for them to perform better during the year to receive a better 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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