Is Poor Performance Management Hindering Your Profits?
An effective performance management process will provide your business with a competitive advantage by making your employees efficient. Performance management is not just about implementing an appraisal system within your business – it’s an ongoing process. The time you take to implement effective policies and procedures usually found within an employee handbook will certainly reward you with improved performance of your employees.
Your employees are your key assets and you don’t want them leaving for a competitor, underperforming, having lots of absence and so on, you want them to come to work and do their job well. The question is do your employees know what is expected of them to be able to perform their job well?
If employees know what is expected of them and this is documented then your business can only benefit.
Whether you start the process with an appraisal (which doesn’t have to be linked to pay) or if it is a reaction to poor performance, then make clear the standard of performance expected from that point on, define SMART objectives which employees need to achieve and link them to the business goals, review regularly, identify training needs, employee ambitions (you may have your next MD in the making, it’s all part of your succession planning) and reap the benefits!