How to approach performance management
It’s more effective to give employees ongoing feedback, rather than to talk once or twice a year about how they’ve done over the past year.
For performance-based management to really work, you need to motivate people in other ways – for example, learning and development, financial and non-financial rewards.
Many businesses now focus on coaching and development as performance-based management tools.
They’ve switched from rigid annual reviews that only evaluate performance to regular check-ins that help people perform.
This approach to performance management looks at building future performance rather than dwelling on the past, which can be more helpful and motivating for both employer and employee.
Performance management in action
Having a coaching mentality helps employees continually improve and stay on task.
To do this, you’ll need to do the following:
- set clear expectations – make sure people know what you want them to do and how you want them to do it. Be certain they have the right skill level to do the job.
- review priorities – check whether they are on track, or if they’ll need to shift their attention to another task to meet their goals.
- comment on specifics – is what they’re doing working, or is there a better way to approach the task? Try to be objective. Remember, your way won’t always be best. Get their input. They may have a better idea about what needs to be changed than you.
- coach and give information – guide them to information that will help them stay on track. Give constructive feedback, without laying out step-by-step what must be done. Make it a joint effort and ask for feedback too.
Be available
Knowing you’re invested in their goals will help employees stay motivated.
Make times during the day or week when employees know it’s ok to meet with you.
This helps if you’re constantly juggling business-related tasks with being there for your people.
Stay objective
When managers rate employees’ past performance, bias can creep in. But when they think about how the person fits into their future business plans, they give a much fairer assessment.
When thinking about employee performance, consider which of the following future-focussed statements fits them best:
- I would give this person the highest possible pay increase.
- I would always want this person on my team.
- This person is at risk of performing badly.
- This person is ready for promotion today.
Give the person a ranking – for example true, fairly true, neither true or untrue, not really true, not at all true.
This is a much fairer way to decide if someone gets a promotion, bonus or pay rise – or to raise the red flag if someone’s performance is below par.
Managing performance levels
How employees are meeting their goals may influence your approach.
Overperforming employees
When people consistently go above and beyond what’s expected, make sure they know you appreciate it.
These are some ideas:
- A simple thank you – be mindful to make it clear what you’re thanking them for.
- Make them star of the week or similar – some people will cringe, others will love it.
- Reward them with promotion, pay or another perk – for example letting them use the work van at the weekend.
Different personality types will respond to different things, so use your intuition or ask them. Personality tests are also a great way to learn more about your employees.
Regular performers
People who do exactly what’s expected can sometimes slip under the radar. Their performance isn’t exceptional, but it’s usually right on track. Make sure you keep them motivated by noticing and praising them, too.
These are some ideas:
- Show you’ve seen that they’ve done what you asked.
- Get their feedback on how they felt about the project.
- Find out what skill they’d like develop to help them grow.
Underperformers
Dealing with underperformance can be tricky. You don’t want to shatter your employee’s motivation.
But long-term poor performance will damage your business, so you need to deal with it before it gets worse.
Don’t assume it’s all on them. Make sure there’s nothing they need from you and be open to their feedback.
These are some ideas:
- Check they have the right skills and resources to do the job.
- Try to show empathy and get to the bottom of what’s going on from their point of view.
- Suggest working with you, or another team member, to improve how they perform.
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