While being a team lead quite a rewarding experience, there are parts of management that might not be so rewarding, such as the performance management aspect of it all. Managers get to be the ones who instill values and company culture into the workforce and watch employee’s career unfold, right in front of them. They get to be a part of that and sometimes even be the reason for it. But they could also be the reason someone’s day was ruined due to poorly delivered performance feedback.
The moving arms required to make performance management effective and change-provoking go beyond one person’s abilities, making managing employee performance very complicated.
It takes organization, facilitation and strategy to manage employee performance in ways that make your people better at what they do, happy with where they work and ready to stay in it for the long haul. But getting to that point is easier said than done and managers should proceed with caution. If your company is making these mistakes in performance management, they may need to rethink their process.
Mistake #1: Your performance management process lacks employee development
Did you know career development opportunities are one of the top things a candidate considers before accepting a job? It’s also one of the top five reasons employees quit their job and search for greener pastures. In this job market, it doesn’t take long to find a replacement! What this means for performance management is that there are countless opportunities to find ways to develop employees, even if that doesn’t necessarily mean a promotion or new role.
With the right performance appraisal process, employees should feel fulfilled because they’ve been enlightened to their strengths, are now aware of their weaknesses and have goals to work towards to improve their own performance. They should leave review meetings with a new sense of purpose and an idea of how their hard work is going to help the company.
How can companies achieve these things? Examine the capabilities of your current performance management process. Is there a clear process for goal-setting and learning integration? If not, it might be time to go shopping for performance management software that does.
Mistake #2: Reviews are not happening frequently enough
While annual performance management reviews might work out for some companies, and scheduling performance reviews is completely at the discretion of the employer, once a year is simply not enough.
In a recent TriNet survey, 85% of Millennials said they would feel more confident in their current role if they were able to have more frequent performance conversations with their manager.
How can you do this? Simple. Implement more frequent performance reviews! If you’re not sure how many, start with at least two per year and adjust from there. There is performance management software with built-in accountability features to help keep managers on track with their performance management process.
Mistake #3: The wrong person is managing performance
Performance reviews can be a source of stress for employees if the wrong person is chosen to administer it. These meetings require a certain kind of trust and chemistry if managers want their criticism and praise to be taken seriously. The same goes in the day-to-day workings of the office, which is why recent research done by Gallup reveals that nearly 60% of employees with managers who are open and approachable are more engaged in their work.
How to make this happen: A good rule of thumb is to have their direct supervisor, the person who actually sees them do their work every day, carry out reviews. There are performance management systems that easily map out the review process, keeping the right people accountable for their team.
Mistake #4: Poor compensation communication
Compensation tends to be one of the most uncomfortable parts of performance management. Managers either have good or bad news to give, but they will still be wondering what reaction they will get from their employee. This doesn’t have to be the case for everyone.
How, you ask? With a performance management process that is fully documented, with clear expectations and goals laid out for the employee to work toward, the compensation offer should not come as a surprise. Companies should make it a point to educate their employees on the market rate as well. According to recent research, 79% of employees paid above market rate actually feel they are paid at or below it! Take this a step further with a performance management software that provides compensation recommendations that align with the company budget and you’re all set for compensation communication!
Do these sound like mistakes your company is making in their performance management process? End the suffering. Reserve your free spot for this online workshop on February 25th, 2016 at 10am PT/1pm ET and we’ll show you how to choose the best Performance Management System that ensures these mistakes are avoided.
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