Did you know that 2 of the most important factors for unwanted attrition pertain to expectations and growth? Furthermore, 89% of new employees fail to work out at organizations due to a lack of soft skills. You might be asking yourself, “what does that have to do with Performance Management?”. Short answer: everything.
In order to understand this relationship, we need first to look at the way most companies run their performance appraisals. Even though performance management is key to run a successful organization, manage the workforce, and ensure that the business objectives are aligned with the employees’ output, this is seldom the case.
Think about it: it’s the end of the appraisal period, and the entire company is doing their best to reach their targets, while preparing for the plans of the next quarter. That means business reviews, audits of processes, brainstorming of new initiatives, budget setting, campaigns, calls, favors asked,... all a last-minute effort to get your department, team, or division to a good place. On top of that, your HR department asks the managers to fill out an appraisal for all their team members, a self-evaluation, and perhaps a 360º review for the rest.
With everything that everyone has on their plate at that time, these appraisals are bound to be missed, forgotten, late, biased, and overall poor quality. And we’re not even talking about the pressure surrounding the appraisals and reviews themselves. Questions like “if I don’t do enough, will I get fired?” or “what if I rate myself well and my manager doesn’t think so?” will add to the mix. There’s a big question mark surrounding appraisals for every employee:
What will this do to me?
This, throughout an entire organization, can result in poor data, bad decisions, unease, and an increased attrition rate due to a faulty process.
So, what’s the solution?
Knowing should measure, from your organization’s core values, to your position competencies, to each individual employee’s goals, should be the very first step towards a proper performance management process. Aligning these to growth and development targets, not to mention to your business strategies, might require a lot of thought.
Once that’s been determined, you need further clarity for the entire organization on what those metrics mean, and what each score represents. What would the actions taken by your company be for each particular employee rating?
Sadly, most companies in the Philippines, of all sizes, lack the expertise or resources to enact such a plan. It requires a lot of in-depth knowledge of the business, each position, department, and individualIn most cases, this can easily become a bandwidth bottleneck that, given the time and budget constraints of even the largest organizations, could prove unfeasible.
Luckily, Sprout can help.
Performance+ puts the power back into your hands as a leader by providing insights that empower you and your organization to make sustainable change. Appropriately for our digital age, Performance + offers scalable performance management solutions with web-based tools to help you track evaluation data in a centralized repository. You can then create development plans connected with positions to keep employees on track. Reach new heights this year - start implementing Performance+.