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.
A critical part of a well planned performance review program is to discern the most important elements of their position as opposed to those that are not. Those elements that are critical will have an impact on the company's immediate success and must be performed well. Case in point, a store clerk's interaction with your customers is much more crucial than being able compose an email to their supervisor.
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 best employee performance rating system will be much like what we had during our days in school. That system was a tiered system that ranged from very good to of course failing. A typical tiered rating system will consist of five performance rating elements. As an example these elements may begin with outstanding, and then go to above average, average, below average, and then unacceptable. Most employees will truly love a performance review rating system like this and will work hard during the year to rise above just being average and this is exactly what we are hoping for.
For your next decision you will have to decide whether or not you would like to include any pay increase based on the rating an employee receives on their performance review. This is an excellent way to incentivize an employee's performance throughout the year. The one risk in tying the amount of pay increase an employee receives to the rating a supervisor gives them is making sure the ratings are fair and objective. In other words make sure that you are rating an employee on established performance measures, such as cash handling skills and not subjectively.
If you are serious about valuing your employees you will take a close look at how best to develop an employee performance review program. As we have shown above there are a number of ways a business can implement a well structured review program that will accomplish this while providing value to the business as well. A well structured system will have a positive impact on employee productivity and should increase your employee retention rate. As we all know employee turnover does tremendous damage to any business. Therefore, this is a win win for everyone!
A critical part of a well planned performance review program is to discern the most important elements of their position as opposed to those that are not. Those elements that are critical will have an impact on the company's immediate success and must be performed well. Case in point, a store clerk's interaction with your customers is much more crucial than being able compose an email to their supervisor.
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 best employee performance rating system will be much like what we had during our days in school. That system was a tiered system that ranged from very good to of course failing. A typical tiered rating system will consist of five performance rating elements. As an example these elements may begin with outstanding, and then go to above average, average, below average, and then unacceptable. Most employees will truly love a performance review rating system like this and will work hard during the year to rise above just being average and this is exactly what we are hoping for.
For your next decision you will have to decide whether or not you would like to include any pay increase based on the rating an employee receives on their performance review. This is an excellent way to incentivize an employee's performance throughout the year. The one risk in tying the amount of pay increase an employee receives to the rating a supervisor gives them is making sure the ratings are fair and objective. In other words make sure that you are rating an employee on established performance measures, such as cash handling skills and not subjectively.
If you are serious about valuing your employees you will take a close look at how best to develop an employee performance review program. As we have shown above there are a number of ways a business can implement a well structured review program that will accomplish this while providing value to the business as well. A well structured system will have a positive impact on employee productivity and should increase your employee retention rate. As we all know employee turnover does tremendous damage to any business. Therefore, this is a win win for everyone!
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