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 very important aspect of a well thought out performance review program is separating out what is absolutely necessary about their position versus what isn't. The absolutely necessary elements of an employee's performance are those tasks that can hurt the business if they are not performed well. For example, a sales clerk's ability to relate to a customer is far more important than their ability to communicate via email with other employees.
Determining what type of rating system you will use as a part of your employee review program is equally important. It is critical that you don't take the easy way out by using a pass or fail system. If you do you will quickly discover that employees are not going to be satisfied with this type of review system at all. Referring back to how we started this article we learned that employees are more concerned with feeling appreciated. Using a pass or fail system will not meet your goal of showing them appreciation.
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.
The last decision you will need to determine is if you will include any type of salary increase to the rating an employee receives from their supervisor on their annual performance review. Employees will be motivated to perform at their very best during the entire year in order to in order to receive a better pay increase. Once you tie a pay increase to the rating you provide an employee this will come with the risk of a supervisor not being fair and objective. This means it is very important that you have objective performance measures and not subjective, for instance the employees ability to handle cash efficiently.
At the end of the day if you are trying to insure your employees are feeling appreciated it is crucial that you have a well planned out employee performance review program. As we have stated above it is possible to demonstrate our appreciation for our employees while providing a value added program to our business. A well planned out system will have a tremendous barring on productivity while lowering the company's employee turnover rate. Supervisors know how much high turnover hurts their business. With this said, it is a positive for everyone!
A very important aspect of a well thought out performance review program is separating out what is absolutely necessary about their position versus what isn't. The absolutely necessary elements of an employee's performance are those tasks that can hurt the business if they are not performed well. For example, a sales clerk's ability to relate to a customer is far more important than their ability to communicate via email with other employees.
Determining what type of rating system you will use as a part of your employee review program is equally important. It is critical that you don't take the easy way out by using a pass or fail system. If you do you will quickly discover that employees are not going to be satisfied with this type of review system at all. Referring back to how we started this article we learned that employees are more concerned with feeling appreciated. Using a pass or fail system will not meet your goal of showing them appreciation.
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.
The last decision you will need to determine is if you will include any type of salary increase to the rating an employee receives from their supervisor on their annual performance review. Employees will be motivated to perform at their very best during the entire year in order to in order to receive a better pay increase. Once you tie a pay increase to the rating you provide an employee this will come with the risk of a supervisor not being fair and objective. This means it is very important that you have objective performance measures and not subjective, for instance the employees ability to handle cash efficiently.
At the end of the day if you are trying to insure your employees are feeling appreciated it is crucial that you have a well planned out employee performance review program. As we have stated above it is possible to demonstrate our appreciation for our employees while providing a value added program to our business. A well planned out system will have a tremendous barring on productivity while lowering the company's employee turnover rate. Supervisors know how much high turnover hurts their business. With this said, it is a positive for everyone!
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