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Setting Up a System for Performance Management: Things to Keep in Mind

by Jody Ordioni

Setting Up a System for Performance Management: Things to Keep in Mind

As the internal culture of the company is being set up or modified, one of the concerns that plague the managers and leaders is that of promotions and raises. Two inevitable routes to pick, when it comes to promotions, are dependent on either seniority or merit. However, you can also choose a combination of the two.

The problem with seniority-based promotion, that is promoting the longest-serving employees first, is that those employees might not actually deserve those raises. Thus, it cannot guarantee that the company is rewarding the candidates who show maximum productivity.

An alternate method for promotions and raises can be a performance management system that takes into consideration the contribution and conduct of the employees towards the company and their teams. This method ensures that those who contribute towards the success of the company are actually rewarded, whenever possible.

However, what should be the criterion for setting up a performance management system? Here are few starting points that you could consider testing your employees in before awarding promotions to the deserving candidates:

Show Accountability and Be Reliable

Your employees are fully functioning adults and are accountable for their actions. Though, you'd be surprised to learn that not many employees take this as a given fact and do not consider the consequences of their actions. Accountable employees always take full responsibility for the work they have produced and its quality. They can be relied upon to follow their schedules and deadlines.

Moreover, they do not shift the blame when something goes wrong in their projects due to their fault. Their efforts positively impact the bottom line of the company and they are highly responsible, for their work. It is necessary to have these traits in your employees since managers cannot supervise them during every second of their work. Thus, employees who are reliable and take accountability are an asset to the company.

Communication is Vital

Communication skills are an important factor to consider when promoting employees to higher or more important positions. Not only should they be able to effectively convey their thoughts, but they should also be open to listening to what others have to say. Employees who can communicate well will ensure that all of the collaborators are kept in the loop regarding the details of any project. Moreover, they will also be able to inform their direct supervisors, regarding any challenges they are facing during the project, openly.

Above all, communicative employees should also be able to give and take constructive criticism. While the former implies that they are engaging with the company, the latter shows that they are willing to work on themselves to become better professionally.

Focusing on the Customers

The end goal of every effort in the company is to provide a satisfactory experience to the customers. Thus, any system of promotions and raises should take into account the efforts of the employees to this end. Customer-centric employees have the responsibility of delivering the service or product to the customer and taking into account any problems that the customers might be facing. Professionalism is of utmost importance when dealing with customers.

Continuous Learning and Development

Performance management systems should also take into consideration the willingness of an employee to learn more about their industry. Learning new skills and increasing their knowledge in their field would lead to improvement of the self. Curiosity regarding their line of work is always welcomed and would help them grow.

Moreover, they should listen to the supervisors and put their advice to good use. The right attitude towards learning new skills and from their mistakes is important for becoming better professionally. Employees who understand this dynamic are an asset to the company.

The Bottom Line

Though the parameters are different and suited to the requirements of each industry, the above-mentioned pointers can be a good place to start at. However, employees who truly wish to work towards the betterment of the company will continue to do so, despite the performance management systems. They will ensure that their performance matches the expectations set for them. As managers and leaders, you must ensure that employees are properly awarded for their efforts.

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