SIX (SEVEN?) KEYS TO EFFECTIVE PERFORMANCE MANAGEMENT

Nearly all participants (98.8%) in our 2010 Employee Programs and Practices Survey have a formal procedure for evaluating performance. This is not surprising, as many of our important business processes depend on effective performance management including goal setting, salary increases, promotions and training.

But, did you realize every few years your performance management system should be reviewed and calibrated to maintain a clear link between performance results and rewards?

By now you may have noticed I have accumulated dozens of HR "checklists" over the years. In this month's issue I share my six keys to effective performance management.

If you have your own list related to performance management, and feel I have forgotten an important point, email me. The first seven people to email me an important seventh factor (no fluff stuff here!) will receive a reward AND will have their key factor published in next month's NewsLink.

David Weaver
President, The Survey Group

1. Set goals and develop meaningful performance measures that give the organization a clear link between performance and results. We all know what gets measured gets done, so choose a few key measures to focus on and keep the organization aware of the progress toward meeting those goals and objectives. 
   
   
2. Connect the job duties and competencies directly to the performance appraisal. Employees should see a link between their job responsibilities and their goals and objectives for the performance period. This gives managers an opportunity to discuss the expectations for the year and to focus each employee's work in helping to achieve strategic objectives. 
   
   
3. Link rewards to performance management. There are two schools of thought on this topic. One is to tie financial rewards directly to the results of the performance appraisal. I believe this strengthens the connection of pay for performance. The other viewpoint is to separate the performance review from the salary increase as a way to put greater focus on the review and not the increase. 
   
   
4. Train managers in the process and techniques of performance management. For the performance review system to be most effective, it needs to be driven by the managers. If managers are trained properly, the system will be executed in a consistent manner with everyone using the same tools and approach. 
   
   
5. Managers must deliver communications regarding performance management. The performance system is not a Human Resources program; it is an organizational program that managers are accountable to execute. It is up to the managers to have the difficult discussions with employees regarding performance issues and this is why training and coaching is so critical for managers to acquire. 
   
   
6. Include employee development in the performance system. Managers and employees should discuss opportunities for training and development to improve the employee's skills and competencies. Additionally, employee development should help improve performance and assist the employee with goal achievement. 
   
   
7. Did I miss any? The first seven people to email me an important seventh factor (no fluff stuff here!) will receive a reward AND will have their key factor published in next month's NewsLink.