How can I track ongoing employee performance?

Employee performance tracking is crucial for boosting productivity and enhancing an organisation’s effectiveness. It primarily serves to structure the planning and analysis of individual activities within the broader company context, aligning employee and departmental goals with the organisation’s objectives.

Regular monitoring allows for detailed tracking of individual staff performance and its impact on company objectives. It highlights gaps in your workforce that need addressing. Due to its accuracy and objectivity, this system effectively reduces the subjective bias in appraisals, thus providing a fairer basis for promotions, pay raises, bonuses, and other rewards.

A well-designed performance management system should include:

Clear Employee Performance Goals

Often, staff underperformance is due to unclear expectations. A top-down commitment from management is essential, with senior executives linking their objectives to strategic company goals. This cascades down to every team member. Goals should be accompanied by metrics to enable staff to benchmark their progress.

Meaningful Orientation and Training

Equip staff with the knowledge and skills required for their roles. Provide comprehensive information about the company, its products, processes, customer requirements, and necessary job-specific training.

Ongoing Coaching and Feedback

Employees benefit from regular feedback highlighting strengths and areas for improvement. Effective performance tracking involves early corrective action. Daily management interactions and informal ‘foot locker’ sessions are crucial for offering guidance and encouraging a two-way feedback process.

Regular Performance Evaluation

While often reduced to performance reviews, a performance management system should encompass more. There is a growing debate over traditional appraisals versus 360-degree assessments, which include feedback from various sources. The chosen method should be part of an ongoing employee development process featuring semi-formal and formal reviews.

Career Development Opportunities

 Facilitate staff growth by setting developmental goals, offering challenging responsibilities, and providing cross-training. Foster a workplace culture that encourages experimentation and learning from mistakes.

Reward and Recognition

Reward goes beyond monetary compensation or promotions. It’s about acknowledging the value of an employee’s contribution. Ensure fairness in recognition and consider diverse rewards, such as gift certificates, weekend breaks, personal notes from senior management, public praise, or even a simple lunch.

Exit Interviews

Understand the reasons behind employee departures. Their feedback can be instrumental in improving the work environment and enhancing staff retention.

Outdated Practices to Avoid in Performance Management:

  1. Annual Reviews Only: Solely relying on annual performance reviews is outdated. Continuous feedback and regular evaluations are more effective than yearly reviews.
  2. Generic Goals: Avoid one-size-fits-all goals. Tailored and specific goals for each employee or department are more motivating and productive.
  3. Neglecting Employee Well-being: Overemphasis on metrics without considering employee well-being can lead to burnout and reduced productivity.
  4. Ignoring Team Dynamics: Focusing solely on individual performance without considering team dynamics overlooks how collaborative efforts contribute to organisational success (West, 2012).

Performance management is about facilitating the success and improvement of all employees. Its ultimate aim is employee satisfaction, retention, development, and augmented business success. Embracing a comprehensive performance management system can be a significant step towards achieving these goals. Want to find out more? Read our guidelines on Rewarding Employee Performance next.