How can you make sure your employee is satisfied? Answer: for better performance management. Although performance management is an integral part of any organization, only half of employees feel that their company’s performance management systems are in place. Many types of research show that happy employees generate more work- and happy salespeople produce more sales
Most Companies Don’t Actively Track Employee Performance
Although performance management is an important business process, many employers do not actively monitor the performance of their employees. Managers may feel that it is too difficult to track staff performance or they may not have a support system. It may not be emphasized in performance management systems throughout the organization, or it may be regarded as a level of senior management. Often, managers may rely on their own memory to make a review of employees’ performance, which can lead to an environment where they feel biased and unfair.
In fact, it is harder for individuals to remember good things than bad or critical things. If everything goes well for the employee, the supervisor may not notice them at all. If an employee makes a mistake or does not meet the expectations in one place, there may be significant consequences for the supervisor that the supervisor cannot control but remembers. Informal tracking of employees’ work exacerbates these problems, making it more likely that an employee will be punished for his or her mistakes and shortcomings rather than being rewarded for his or her achievements.
Effective Performance Management System in Pakistan for Business Success
Effective performance management is important because standard performance reviews have their flaws. Not only do employees rarely react negatively to performance reviews, but the updates themselves may not lend itself to useful information.
It is known that employees do not leave companies, they leave managers. If an employee feels that the management is biased against him or her, he or she may resign, resulting in the employee’s incompetence.
Small number of organizations believe their review process works. Businesses continue to engage in annual updates because they are part of the normal business process, rather than believing that they really work.
Major employees feel blinded by job reviews. With negative emphasis, employees often feel as if performance reviews show that they are not able to do anything right. These workers may be discouraged or feel helpless. Open, continuous communication may be needed to ensure that employees are not surprised by their job reviews.
Half of the employees felt that their performance reviews were conflicting with other employees. Comparing employees to each other has proved to be a frustrating and potentially discouraging step for employees and may even make them go away completely. In fact, a number of employees reported that they were looking for another job as a result of a job review.
Employers are currently looking to review or update their performance management solutions. Managers agree with employees: current performance review standards are often biased and lax. Managers also feel that performance reviews are a waste of time, which is why many companies are now looking to update and improve their performance management solutions.
Employees Stay Motivated through Proper Recognition
Existing performance management systems appear to stumble if they incorporate incorrect standards of criticism or promote an unhealthy competitive environment. By postponing employee reviews and performance metrics, employers are failing to make money from what drives employees: recognition.
Employees believe that employers can increase employee engagement. Recognition is a key factor in retaining employees – and is one way to make performance management more effective. By recognizing employees’ achievements and continually giving them goals they must work on, businesses can make their employees feel valued.
Yes, it can be difficult to identify employees who need recognition without having a way to track employee data. Organizations use spreadsheets as the only way to track performance. This contributes to the difficulty in creating effective performance management; managers cannot work with real data to improve the productivity of their employees.
By creating better business processes and data, an organization can ultimately improve its perceptual and staff-based relationships with its employees. In this regard, it can create effective and comprehensive performance management strategies, with the ultimate goal of helping an organization achieve a higher ROI.
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