Why Performance Management Matters!

Performance Management can be a daunting task for an Employer, but it doesn’t have to be. It boils down to one simple concept that should serve at the core of all Business and Human Resources decisions. Employees desire to be treated fairly. This is a universal concept, regardless of level, industry or job classification. How we achieve that fairness is based on policies and how they are implemented.

Policies related to performance reviews should include consistency and regularity, guidelines for setting goals, standard processes to follow if goals are not achieved, and a plan for assisting employees to help them reach the level of performance expected of the role.

Let’s start with frequency of reviews. There is no hard and fast rule, but the standard is annually. HRBOOST® also recommends a 90-day introductory review for New Hires. This is an invaluable opportunity to provide quantifiable feedback to an employee and address any additional training that may assist in attaining peak performance. If, however, you determine the new employee is not an ideal fit, do not extend the introductory period, make the decision to terminate and allow both the company and the employee to move on into something more conducive to them.

Another area of importance is setting goals that reflect the responsibilities of the position. For example, a Supervisor’s goals should specify their responsibility to report policy infractions and meet procedural deadlines. The Supervisor should be reviewed based on their adherence to these policies.

When addressing performance concerns, set measurable goals that will determine whether they have improved, or they need to be counseled out of the organization. When counseling an employee, always make sure to document the conversation and have another individual, preferably HR, present. An employee does not have to sign counseling documents, simply document the conversation, who was present and initial that the employee refused to sign.

Another integral part of Performance Management is addressing improper conduct. Again, policy will be your guide, allowing you to expeditiously investigate the situation and reach a resolution.

When an investigation needs to occur, following already established procedures will protect you as the Employer and allow the Employee the benefit of consistent and fair resolution.

Important steps to consider during an investigation:

• Reference your Employee Handbook, which should outline how investigations will be conducted.
• Determine the purpose of the investigation and clearly outline goals.
• Act as a neutral fact finder. An Employer’s goal is to figure out what happened, not state opinions or form conclusions. Starting with When, Where, Who and Why will help get to the facts.
• An Employee has the right to discuss the investigation, Employers do not. Make sure Supervisors are kept informed and recognize their responsibility for confidentiality.
• Employers should maintain Disciplinary logs and review personnel files to determine whether past performance was a factor.
• Ask the offended individual for a recommended resolution. Their response may not be feasible, but often there is a simple solution to the issue.
• Conclude with a corrective action document and make sure to circle back with all involved parties. Continue to monitor the situation to avoid retaliatory behavior.
• Add new policies as necessary to address gaps in procedure.

 

The Employee-Employer relationship is based on alignment of goals and expectations. One of the best ways to achieve that is through performance management. Setting a clear understanding of expectations through policies puts everyone on the same team, focused on achieving the ultimate end goal……your business running at peak performance.

Thank you to Masuda Funai Law Firm for the informative webinar discussing Performance Management. We look forward to sharing these insights as HRBOOST® partners with our clients on their Human Resource needs.