Many companies are hesitant to admit that their employee performance management system does not deliver the expected results. Some of the systems do not motivate employees to perform better at all, and well-intentioned plans simply fail. What went wrong? Blr.com focused on this question and pointed out typical problems of performance management systems that can cause a lot of damage.
1. Absence of continuous feedback
Managers often interpret the existence of a formal performance management system as a signal that they should share feedback only once a year. Annual performance evaluations should, however, summarize the feedback given throughout the entire year.
2. Setting inappropriate or unclear goals
Employee performance targets should be determined with regard to company goals. They should be realistic but sufficiently motivating, not only easily achievable. It is also important to set objectively measurable targets.
3. Insufficient managerial involvement
Worse than sharing feedback only once a year is not to share it at all. Why do you have a performance management system if you can't persuade your managers to participate?
4. No explanation on how to improve
Giving feedback is not enough. Employees should hear feedback along with a clear explanation of what needs to be improved and how to do it.
5. Insufficient documentation
The results of performance evaluations should be kept in writing. Each evaluation should be written clearly, completely and in an understandable way.
6. Ignoring problematic employees
Sharing a negative evaluation is not enough. Employees will soon notice that you are not actively dealing with their colleagues' performance issues and may lose motivation.
7. Ignoring excellent employees
Any employee who has an excellent performance record deserves recognition. When he sees that his above-average results are taken for granted, he will soon lose motivation.
8. Unclear communication
Employees should not leave a performance evaluation interview without understanding whether their performance is good or bad. Managers should speak clearly and describe specific examples.
9. Inconsistency
The system should be the same for all departments and all managers. Otherwise, nothing can be compared. It sounds logical, but reality is often different.
10. The system has been incorrectly implemented
This problem involves issues such as a lack of support from the company's top management, inadequate definition of the needs of the organization, incompatibility with other systems and inability to develop the system further. It is also fundamental when a person responsible for individual implementation is not clearly identified.
-kk-