Performance Management is a Process – Strongly Linked to a Firm's Compensation System
Performance Management is the systematic process intended to get the best results from your employees, thereby, improving organizational effectiveness in the accomplishment of your business goals. Performance Management is coupled to your firm’s compensation system in a number of ways. Your compensation system must be working effectively to have a successful performance management process. We can assist you in making sure each of these elements is working to support achieving top performance in your organization. Job Descriptions: Performance management begins when a job is defined into a job description. Job descriptions provide a framework so employees understand the performance expectations for their position. They should clearly tell the employee what they are accountable for in their role. A job description provides the foundation for managing employee performance. Unfortunately, job descriptions, so important to compensation and performance management, are often neglected.
Performance Planning and Assessment: Performance planning is usually done annually. It builds on the foundation of the job description and reflects the goals and results the employee is expected to contribute to the firm in the upcoming year. The annual plan should include performance-based standards, outcomes, and measures. It should clearly state the performance expectations for the employee to perform at a top level. Throughout the performance period the employee receives feedback, and gets an annual performance appraisal. Salary Increases: Of course, salary increases largely take into account the employees’ annual performance in their position, in light of market and business conditions. Incentive Awards: Incentives awards are almost always based on achieving results in relation to the established goals for the year.
An effective Performance Management process can work with your firm's Compensation System in maximizing employee performance and contributing to business results.
"It has been said that a primary reason employees fail to meet manager expectations is simply because they are not sure what they are suppose to be doing."