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.
A critical part of a well planned performance review program is to discern the most important elements of their position as opposed to those that are not. Those elements that are critical will have an impact on the company's immediate success and must be performed well. Case in point, a store clerk's interaction with your customers is much more crucial than being able compose an email to their supervisor.
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 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.
One of your final decisions to make is determining if there will be any increase in pay tied to the rating the employee is awarded by their supervisor on the employee review. Most employees will see this as a great incentive to perform at their best during the entire year. Of course with anything there is risk and the risk here is that any time you determine a pay increase on the rating they receive from their supervisor it better be based on objective and fair. In short the rating a supervisor awards must be attached to performance that can be measured like how an employee handles cash and not merely subjective.
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!
A critical part of a well planned performance review program is to discern the most important elements of their position as opposed to those that are not. Those elements that are critical will have an impact on the company's immediate success and must be performed well. Case in point, a store clerk's interaction with your customers is much more crucial than being able compose an email to their supervisor.
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 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.
One of your final decisions to make is determining if there will be any increase in pay tied to the rating the employee is awarded by their supervisor on the employee review. Most employees will see this as a great incentive to perform at their best during the entire year. Of course with anything there is risk and the risk here is that any time you determine a pay increase on the rating they receive from their supervisor it better be based on objective and fair. In short the rating a supervisor awards must be attached to performance that can be measured like how an employee handles cash and not merely subjective.
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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