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.
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 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!
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.
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 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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Very nice experience to read your most informative article.
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