Ongoing Coaching: Key to Performance Management

03/06/07

Nearly every big company has HR staff who spend a great deal of time and money creating systems designed to improve employee performance. So why do 66 percent of the large employers surveyed by Mercer Human Resource Consulting say their performance management systems are effective only “to some extent” in helping the company achieve its goals?

One big problem—for large and small companies alike—is that many managers evaluate their employees just once or twice a year. Only a quarter of the managers surveyed, says Mercer, provide “ongoing and constructive performance feedback and coaching to employees.”

Infrequent feedback just about guarantees mediocre performance from average employees. Says Colleen O’Neill, head of Mercer’s talent-management practice, “Performance management should be an ongoing process, not a one-time event.” Companies, she adds, are missing a “tremendous opportunity” to improve employee performance and the bottom line if they think performance management consists of a single, yearly evaluation.

Additional Factors for Success
Mercer’s survey disclosed that successful performance management systems have two other things in common.

1. Executives are engaged in the process. It’s critical that senior managers be involved and demonstrate that they care about managing performance.

2. Managers must be able to differentiate performance. Most managers know who the good performers are, but they practice an “I’m OK, you’re OK” approach to employee evaluations. Says O’Neill: “Unless your business results are simply off the charts, the majority of your people should not be rated ‘4’ or ‘5’ on a scale of 1 to 5.” In other words, organizations must train managers to provide honest evaluations. (Giving employees inflated ratings, by the way, can come back to haunt you if you find yourself in a legal dispute with one.)

Roadmap to Better Employee Performance
The Mercer survey revealed a few other ways respondents believe they can improve employee performance: Connect performance management with career-development programs, and get feedback on performance from sources other than the employee’s manager. Additional feedback can come from an employee’s self-assessment, as well as co-workers and customers.

G.Neil’s performance management experts also say that no company is too small to have a formal appraisal system. Creating personal and organizational goals, then evaluating employee performance in reaching them, paves the way for better business results.

G. Neil’s Performance Appraisal Form (1-5 Rating Scale) covers the key elements of good performance using a 1-5 rating scale and covers 11 key performance areas.

Keep track of performance at your computer by using Performance Now! Software.

More Resources:
gneil.com

Productivity and Performance

Motivation Solutions

Recordkeeping Practices

Attendance Tracking