Employee surveys have been conducted year after year throughout all types of professions and the number one desire continues to be feeling appreciated versus the amount of their pay. The truth is that pay falls in about the middle of the list. What we should be learning from these surveys is that we need to be providing our assessment on their performance to them. A well planned employee performance review program is a great way to accomplish this.
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.
Another important element of your performance review program should be the employee performance rating system. An easy but less effective performance rating system would consider an employee either meeting or not meeting the company's standard of performance. Rarely will any employee ever find this type of review program acceptable. Remember, we began this article by stating that employees want to be valued. Simply informing them that their performance is meeting the company's standard will not accomplish that.
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.
At the end of the day if you are trying to insure your employees are feeling appreciated it is crucial that you have a well planned out employee performance review program. As we have stated above it is possible to demonstrate our appreciation for our employees while providing a value added program to our business. A well planned out system will have a tremendous barring on productivity while lowering the company's employee turnover rate. Supervisors know how much high turnover hurts their business. With this said, it is a positive for everyone!
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.
Another important element of your performance review program should be the employee performance rating system. An easy but less effective performance rating system would consider an employee either meeting or not meeting the company's standard of performance. Rarely will any employee ever find this type of review program acceptable. Remember, we began this article by stating that employees want to be valued. Simply informing them that their performance is meeting the company's standard will not accomplish that.
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.
At the end of the day if you are trying to insure your employees are feeling appreciated it is crucial that you have a well planned out employee performance review program. As we have stated above it is possible to demonstrate our appreciation for our employees while providing a value added program to our business. A well planned out system will have a tremendous barring on productivity while lowering the company's employee turnover rate. Supervisors know how much high turnover hurts their business. With this said, it is a positive for everyone!
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