The growth prospects and success of your business are directly tied to how well your employees perform their jobs. In fact, it can be argued that your employees are your best long-term competitive advantage. So it pays to keep them engaged and motivated. It’s important to clearly define expectations as well as establish objectives and goals for each employee. You can then have systems in place to measure and reward performance. Making performance management part of your business culture will help you equitably distribute compensation and benefits, increase operational efficiency and workforce productivity, identify high-performing employees so you can groom them for leadership roles, and design effective training programs to help boost performance company-wide.
Using a combination of quantitative performance metrics will allow you to evaluate whether your employees are helping your company grow by meeting the goals and objectives of their jobs. These metrics include productivity, efficiency, and training. More subjective and qualitative evaluations can help you recognize the uniqueness of each employee and the less tangible benefits they bring to the workplace.
There are many ways to measure and evaluate employee performance data, including graphic rating scales, self-evaluation, Management by Objectives (MBO), and checklists. A 360-degree feedback system provides a way to compile personal feedback from a variety of individuals to build a deeper, more intuitive assessment of an employee’s contributions.
Some employees exhibit special initiative, creative thinking, and leadership traits. Growing your business depends on you identifying these top performers. You will need to give them the autonomy and freedom to improve their skills, make decisions, and find ways to make your business better. Mentoring and nurturing high achievers allows them to do more of the heavy lifting, which can make your job easier.
Measuring and evaluating employee performance is the first step in your quest for improvement. The follow-up is rewarding excellence with some combination of compensation, benefits, perks, recognition, and appreciation. Effective rewards can boost workforce morale, increase loyalty to your company, and motivate employees to continually get better at their jobs.
Well-designed, engaging training programs that are focused on improving specific performance outcomes can help increase productivity and profits. It can also limit mistakes, and save money by teaching everyone how to work more efficiently. Training opportunities can improve employee job satisfaction and decrease the likelihood of employees leaving their jobs within the first year of employment.