It can be tempting once you have hired someone to just leave them to get on with it; you’ve matched the person to the job spec, given them the training, and assume it’s all fine. Maybe you know the role inside out and take for granted that they will too. Or maybe they’ve been hired because you have no idea how to do that job, and quite frankly do not want anything to do with it.
This approach, while tempting, can backfire badly whether your employees sink or swim. If they are underperforming, you may let them get away with it for too long to the detriment of the company. Whilst if they are amazing at their job, but you do not acknowledge this through performance management… well they may walk away and go somewhere where their talents are better appreciated!
Here’s a closer look at performance management and why it matters.
The benefits of performance management for your business
It goes without saying that employees are not robots (not yet at least!). So you cannot simply program them and expect them to work without a hitch – although some might.
By adopting performance management processes within your business, you are taking the opposite path. You set expectations and goals, and guide employees towards meeting them. This might mean identifying weaknesses and overcoming them, and equally spotting their strengths and playing to them.
You are adding value to your workforce: engaging them, aligning them with your company goals and purpose, giving the right recognition. And, if it is not working out, first giving them a chance, and then ultimately weeding out the ones who don’t fit.
Research from global consulting giants McKinsey & Co suggests that companies which prioritise their people’s performance do X4.2 better than companies that do not, leading to 30% better turnover and five percentage points less staff attrition.
What good performance management looks like
You may already have some aspects of performance management in place. But let’s assume you are starting from scratch.
Frequent 121 check-ins
Good communication is at the heart of good performance management. So rather than just relying on the dreaded once-a-year annual appraisals, have far more regular check-ins with all staff – once a month, or at least once a quarter.
Set goals
Make sure you are clear about what is expected of them. SMART (specific, measurable, attainable, relevant and time based) goals are always recommended. How they perform relative to these will give you an evidence base by which to help them get better or recognise a job well done.
Make it two-way
Performance management should not be a rigid top-down process. Use your 121s with individuals to listen to their ideas and concerns (you may see through some excuses too!). This may help you spot wider training needs, eliminate inefficiencies or replicate successes.
Record findings
As with much of HR’s work, it is important to retain notes of what is discussed, the goals set and ongoing progress. This will help you make decisions and back them up should they be challenged.
Be fair and consistent
While performance management may be considered at a company or team level too, it is ultimately about individuals. Make sure you are fair to everyone when managing their performance, especially on matters of equality law.
Management training
Good performance management will be conducted by managers who are skilled in their role: able to hold robust conversations, show emotional intelligence and make solid business judgements. At The HR Dept, we offer a range of online and in-person training courses which can help you with this.
Help from The HR Dept
As well as our training courses, we can help you if you want to set up a high-quality performance management process within your business. We can also assist if you have a specific issue, such as dealing with persistent poor performance, in the most effective way possible. Talk to the HR Dept about our ad hoc services to see what works best for you.