Employee Performance: Monitoring Strategies For Success

Performance management is a tool that helps managers monitor and evaluate employees' work. It involves consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals. Performance management is intended to help people perform to the best of their abilities and in alignment with the organisation's goals. It views individuals in the context of the broader workplace system and encourages their input in goal-setting. Performance management focuses on accountability and transparency and fosters a clear understanding of expectations.

Planning work in advance

• Setting Performance Expectations and Goals: This involves establishing clear, specific, and measurable objectives that employees will be evaluated against. These goals should be aligned with the organisation's goals and include milestones and deadlines. For example, a goal could be to "increase revenue by 10% in the first quarter". Setting SMART goals (specific, measurable, attainable, relevant, and time-bound) ensures that employees understand what is expected of them and can work towards achieving those objectives.
• Involving Employees in the Planning Process: Engaging employees in setting performance expectations and goals helps them understand the organisation's goals and their individual roles in achieving those goals. It also allows employees to provide input, ensuring that goals are realistic and achievable, and fostering a sense of ownership and commitment.
• Measuring Progress Towards Goals: Planning work in advance includes determining the measures that will be used to assess whether expectations and goals are being met. These measures could include key performance indicators (KPIs), milestones, or other metrics relevant to the specific goals set. Regularly monitoring these measures helps identify areas where employees may need additional support or recognition.
• Performance Reviews and Feedback: Planning work in advance is closely linked to performance reviews, which involve assessing employees' progress towards their goals. Regular feedback sessions allow managers to provide ongoing feedback, recognise achievements, and identify areas for improvement. Performance reviews should be timely, specific, and include a dialogue between the manager and employee to ensure a clear understanding of expectations.
• Training and Development: Planning work in advance also involves considering the training and development needs of employees to enhance their capacity to perform. This could include providing relevant assignments, introducing new skills, or offering training programs to help employees improve their performance and achieve their goals.
• Flexibility and Adaptability: While planning is essential, it's also important to remain flexible and adaptable. Goals and expectations may need to be adjusted to account for changing conditions or new priorities. Regularly reviewing and updating plans ensures that they remain relevant and achievable.
• Consistency and Fairness: Consistency in planning and performance management is crucial to ensure fairness among employees. Organisations should strive for uniform goal-setting, measurement, and evaluation processes to avoid potential biases or discrepancies that may impact employee morale and performance.
• Linking to Organisational Strategies: Planning work in advance should be aligned with the organisation's strategic goals and long-term planning. This ensures that employee efforts are directed towards supporting the overall success of the organisation, and it helps in attracting and retaining talented individuals who contribute to the achievement of those strategic objectives.

In conclusion, planning work in advance is a foundational step in effective performance management. It provides a roadmap for employees to understand expectations, set goals, and work towards achieving those goals. By involving employees in the planning process, providing clear objectives, and offering ongoing feedback and support, organisations can foster a culture of accountability, growth, and high performance.

Providing ongoing feedback

Open Communication

An open-door policy encourages open and honest communication between managers and employees. This approach breaks down barriers and creates a safe space for employees to discuss their goals, successes, and areas where they can improve. It is essential to ensure that feedback is a two-way street, with both parties actively participating in the process.

Regular Check-Ins

While annual or bi-annual performance appraisals have been the traditional approach, they are often ineffective and do not provide the frequency of feedback that employees, especially millennials, now expect. Moving towards more frequent check-ins, such as monthly or even weekly meetings, ensures that employees receive timely feedback and have a clear understanding of their performance at all times.

Real-Time Feedback

The most effective feedback is given in real-time, as events occur. This approach allows managers to provide specific and actionable feedback, making it more meaningful for employees. Reflecting on this feedback during regular check-ins helps employees identify patterns, strengths, and weaknesses and create actionable performance improvement plans.

No Rating Systems

Ongoing feedback should focus on open and honest conversations rather than rating systems or lengthy appraisal forms. Rating systems can be extremely subjective and may not accurately reflect an employee's performance or provide meaningful guidance for improvement. Instead, managers should focus on providing specific examples and actionable suggestions during their discussions with employees.

Continuous Learning

Feedback is a powerful tool for employee development and continuous learning. It provides employees with the opportunity to learn from their successes and failures and make better decisions moving forward. By creating a culture of continuous learning, organisations can align their employees with the company's goals, strategies, and vision, fostering a sense of shared purpose and engagement.

Improved Performance and Productivity

Ongoing feedback has a direct impact on employee performance and productivity. When employees receive clear and positive feedback, they gain confidence and a better understanding of what is expected of them. This, in turn, motivates them to work more effectively and efficiently, ultimately increasing their overall productivity.

In conclusion, providing ongoing feedback is a powerful way to consistently monitor employee performance. It creates a culture of open communication, continuous learning, and engagement, leading to improved performance and productivity. By adopting this approach, organisations can drive employee success and create a positive work environment that fosters growth and development.

Developing employee performance

Performance Planning and Goal Setting:

Performance planning involves supervisors meeting with employees to create tailored performance plans. This includes establishing measurable, clear and specific goals that align with the organisation's strategic objectives. Goals should be challenging yet attainable and should be regularly communicated to ensure a shared understanding.

Continuous Monitoring and Feedback:

Supervisors should continuously monitor employee progress, providing feedback and making necessary adjustments. This allows for early identification of areas where employees may need additional support or development. Monitoring also enables supervisors to make employees aware of their progress and how it contributes to the organisation's goals.

Performance Development and Training:

Based on the continuous monitoring, supervisors can determine the development needs of employees. This includes both remediation for areas of improvement and enhancing skills where employees are already performing well. Development can take various forms, such as formal training (classroom), informal training (online), coaching or mentoring, and assigning new work responsibilities.

Performance Evaluation and Rating:

Supervisors should periodically evaluate employee performance by comparing it against the established goals and standards. This evaluation should not come as a surprise to employees if regular performance discussions have taken place. The knowledge gained from monitoring and evaluation should be used to provide meaningful feedback and assign a fair rating to employees.

Performance Improvement and Support:

If employees are falling short of performance expectations, supervisors can implement performance improvement plans (PIPs). These plans outline the performance discrepancy, expected performance, and the steps needed to improve. PIPs also serve as legal documentation and can be part of a progressive discipline process. Supervisors should work with employees to address performance gaps and provide the necessary support to help them succeed.

Performance Recognition and Rewards:

Recognising and rewarding employees for their achievements is an essential aspect of performance management. Supervisors should make meaningful distinctions when granting awards, ensuring that award amounts are clearly differentiated based on performance levels. Rewards can take various forms, including organisation-wide praise, monetary bonuses, additional paid time off, or other incentives that motivate and inspire employees.

Rating employee performance

Performance reviews are a way to monitor employee performance and are used by most organisations in the United States. They are used to support decisions related to training, career development, compensation, transfers, promotions, and reductions-in-force or employment termination.

Performance reviews typically involve setting clear and specific performance expectations for each employee and providing periodic informal and/or formal feedback about employee performance relative to those stated goals.

Performance ratings are a tool used to rank employee performance, often when determining how to allocate raises and bonuses. Managers usually assess employee performance as part of the annual performance review process, assigning a number on a one-to-five scale to rate an employee’s performance quality during the preceding months.

There are several types of performance review systems:

• Ranking: Lists all employees in a designated group from highest to lowest in order of performance.
• Forced distribution: Ratings of employees in a particular group are disbursed along a bell curve, with a certain percentage allocated to each performance level on the scale.
• 360-degree feedback: Collects information from the employee's supervisor, colleagues, and subordinates about an individual's work-related behaviour and its impact.
• Competency-based: Focuses on performance measured against specified competencies rather than specific tasks or behaviours.
• Management by objectives: Goals are set collaboratively for the organisation, departments, and individuals. Employees are evaluated annually based on how well they achieve these goals.
• Graphic rating scales: List several factors, including general behaviours and characteristics (e.g. attendance, dependability, quality of work), on which a supervisor rates an employee.

When rating employee performance, it is important to define competencies for each role, develop an appropriate rating system, gather data during continuous feedback, rate individual competencies based on data, and set goals for improving overall performance.

Performance management systems typically include three broad elements: goal setting, performance review, and a performance improvement process.

Rewarding good performance

Rewarding good employee performance is vital to motivating and retaining talent. When employees are rewarded for their efforts, they are likely to become more loyal and productive, which can boost the overall productivity and output of the organisation.

There are many ways to reward employees for good performance. Firstly, a simple "thank you" can go a long way, especially in a public forum such as a company-wide meeting or email. Being specific about what an employee did that was so great can give that person an extra boost of motivation. A handwritten note can also be a meaningful way to express gratitude.

Another way to reward employees is to provide unique, personalised rewards. For example, a company could organise a warm welcome for outstanding employees by decorating the entrance and allowing other employees to congratulate them. Offering impromptu time off, a subscription to a streaming service, or tickets to a concert or sporting event can also be fun and meaningful ways to reward employees.

Financial incentives can also be effective. Gift cards, monetary bonuses, or reimbursement of commuting expenses can be appreciated by employees, especially those who are entry-level and may be strapped for cash.

Investing in employees' professional and personal development can also be a rewarding experience. Sponsoring educational programs, seminars, or masterclasses can show employees that the company values their growth and development.

Additionally, creating fun surprises can be a great way to reward employees. Sending a care package, gifting a spa basket, or giving them an ornamental plant with a congratulatory message are all thoughtful ways to show appreciation.

Overall, finding meaningful ways to reward employees is essential for improving employee morale, engagement, and productivity, as well as creating a positive company culture.

Frequently asked questions