'Tis The Season - For Performance Management

By: Victoria Kuebler, PHR, CCP, CBP

Word Count: 717 words
Time to Read: 3-4 minutes

As the New Year approaches, so too does the season when many companies administer their annual performance reviews. At a time when corporate salary budgets are dropping to historic lows and economic conditions continue to put pressures on employee salaries, many organizations are weighing their decision of whether to provide pay increases or retain salary freezes. And some companies may even decide to forego the annual performance evaluation if they are unable to give employees merit awards. Even if your company makes the determination to hold fast on salaries, don’t ignore the importance of the performance management process.

Performance management is about more than just administering salary increases and merit awards. Performance management is one of the most effective tools you have to influence your employee’s actions within the context of the culture of your organization. It’s about leading your team and your organization to greater accomplishments by giving your employees the information and encouragement they need to give their highest performance. In a time when employee morale has been diminished by the overall economic situation and employee disengagement is running high; now more than ever is the time to empower your employees and reconnect them with the mission and vision of your organization.

So even if pay increases aren’t in your 2010 plans stay the course with your performance management program and include three simple ACTions that are in the best interests of your employees and your organization.

• Accomplishment – Celebrate successes and recognize accomplishments not only during the performance review discussion but also throughout the year. Acknowledging what has been achieved, especially during difficult times, sends a positive message and emphasizes that employees’ efforts are meaningful and appreciated. And helping employees feel they are a part of these successes is fundamental to increasing morale. Keeping employee morale positive during times of economic and organizational uncertainty is critical.
  
  In addition to reviewing successes and accomplishments during performance discussions, increase the frequency of employee meetings and other forms of communication in order to elevate positive awareness and deepen employee trust and engagement. Rethink how you communicate about organizational and customer accomplishments and how you can use fun, no- or low-cost strategies to reward employees, teams and departments for their efforts.
  
  
• Connection – Provide employees with clear lines of sight to strategic goals and initiatives. Focus employee attention and effort on the critical priorities and needs of the organization and the customer. Use the performance discussion to connect your employees back to the business of your business and reengage them in your vision.
  
  As well, make these “connecting” conversations ongoing and fluid. Your business can’t wait until the next year-end cycle to adjust plans. External factors in your market, industry, and the economy change so quickly that they require you to be nimble to adapt and flourish. So create and communicate short-term performance objectives and plans that are aligned with your organization’s goals. The clearer the lines of sight for your employees, the more likely they are to succeed.
  
  
• Talent Management – Expand your strategies to develop and retain your organization’s talent and knowledge capital. Use performance discussions to find out your employees concerns and future desires. Provide your employees with direction and plans for career growth and development. Take advantage of the talents your employees may have beyond their current position. And develop and implement succession plans for all levels within your organization.
  
  Also consider what new or different skills, competencies and talent your organization will need going forward. As the economy moves into recovery, as it inevitably will, envision what type of employee it will take for your company to excel and provide your customers with outstanding service. And while you might not be hiring new talent into your organization, you can assess the developmental gaps of your current employees and make plans to provide the training opportunities they may need to acquire identified skills.

Integrate these three simple ACTions into your performance discussions as you begin your year-end performance management processes. Provide your employees with valuable recognition, direction and developmental opportunities even if your company is not providing pay increases. Reconnecting your employees to your business and customers and providing a clear plan for the future will ultimately reengage your employees and translate into increased value to your organization.