Survey after survey has shown clearly that employees are more concerned about being valued for what they do than how much money they make. In fact, their pay comes in far down the list on almost all employee surveys. The clear message to be learned in these surveys is that employees want to hear feedback on their performance. The very best way to accomplish this is with a well structured employee performance review program.
In order to best provide a well structured employee review program we need to decide what is critical about their job performance and what is not. When we talk about what is critical about their performance we are referring to those tasks that an employee performs that make a big difference to our business. As an example, if our employee is a sales representative their customer service skills are critical as opposed to their ability to answering internal employee emails.
Developing an acceptable rating system is another crucial piece of your well planned employee review program. It is important that you don't try to take the easy way out by using a system that only determines whether the employee either meets or doesn't meet your expectations. Employees hate this type of rating system because it offers no real feedback on their performance. As a reminder, we began this article by providing information that employees want to feel appreciated. Using a rating system that simply determines they are either meeting or not meeting your expectations will fall short of this.
The grading system used in most schools is a very effective system and therefore our performance review ratings should be designed to model that. As a reminder, that system was a tiered system that rated someone either outstanding or somewhere less than that. The most successful tiered systems will consist of five rating elements. Those elements could be as simple as an A equaling outstanding to a B, C, D, and F equaling unacceptable. You will quickly see that employees really like this type of employee rating system and their performance during the year will show they are striving to achieve something better than an average rating.
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!
In order to best provide a well structured employee review program we need to decide what is critical about their job performance and what is not. When we talk about what is critical about their performance we are referring to those tasks that an employee performs that make a big difference to our business. As an example, if our employee is a sales representative their customer service skills are critical as opposed to their ability to answering internal employee emails.
Developing an acceptable rating system is another crucial piece of your well planned employee review program. It is important that you don't try to take the easy way out by using a system that only determines whether the employee either meets or doesn't meet your expectations. Employees hate this type of rating system because it offers no real feedback on their performance. As a reminder, we began this article by providing information that employees want to feel appreciated. Using a rating system that simply determines they are either meeting or not meeting your expectations will fall short of this.
The grading system used in most schools is a very effective system and therefore our performance review ratings should be designed to model that. As a reminder, that system was a tiered system that rated someone either outstanding or somewhere less than that. The most successful tiered systems will consist of five rating elements. Those elements could be as simple as an A equaling outstanding to a B, C, D, and F equaling unacceptable. You will quickly see that employees really like this type of employee rating system and their performance during the year will show they are striving to achieve something better than an average rating.
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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