Getting the most out of employees has always challenged employers. It is particularly difficult in today's highly regulated business environment with increased global competition and changing employee attitudes. Performance management is not just about dealing with the poor performers. Instead, it's a more holistic process that begins with getting the right people, setting employee expectations, coaching employees, and ultimately dismissing the poor performers or employees that do not fit into the organization.
Step 1: Getting the Right People
In sports, the coaches with the best records are usually the best
recruiters. The same thing applies to the workplace. If you get the
best talent, you have to spend less time "coaching" their
performance. Getting the right personnel starts with your
recruiting efforts. It continues through the screening and
in-person interviewing stages. This part of the process involves
using criminal, credit, motor vehicle, education or other
background checks that are legal and appropriate for the position
you are seeking to fill. It also continues through the introductory
period of employment during which you are trying to figure out
whether you made a good decision to hire the new employee.
Step 2: Setting Expectations
Once a selected applicant becomes your employee, provide that
person with a thorough orientation to your business and how they
will fit into your organization. Tell the person about your values,
culture, benefits, rules, and expectations for successful
performance. The more precisely you articulate these expectations,
the more likely the person is to meet and hopefully exceed your
expectations. This orientation stage is important in getting the
new employee enthused and positive about the opportunity to work
with you.
As part of the orientation process, you will need to complete all of the basic employment forms and to provide the new employee with a detailed employee handbook. That is also the time to execute any employment agreements or restrictive covenants, which may contain confidentiality or noncompetition provisions. Having these documents in place will convey the image that you operate your business in a professional manner and that you expect the employee to act professionally, too.
During the course of an employee's employment, you also will issue policies or directives relating to different matters of significance. Clearly articulating your expectations in writing will help to make sure that employees are aligned with your expectations and, hopefully, prevent employees from straying outside the bounds of acceptable performance and conduct.
You will also provide employees with specific training and opportunities to work with peers so that they can learn to do their jobs better. Again, as with clear policy direction, effective training can help employees succeed in their jobs and minimize the need for negative performance counseling, discipline or even discharge.
Step 3: Coaching for Better Performance
If you get the first two steps right, then your job of performance
"coaching" becomes easier. But even with high performers,
you need to have preexisting mechanisms in place to periodically
review and "tune-up" performance. Of course, these same
mechanisms need to be in place so that you can deal with improving
the performance of the mediocre or poor performers, as well. The
most basic mechanisms for performance coaching are progressive
discipline procedures and periodic performance evaluations.
Although progressive discipline is not required and should not be promised, most employers want to try to rehabilitate employees before terminating their employment. To be effective, discipline needs to be timely, objective, impartial, consistent, and appropriate for the circumstances. Progressive discipline also may help to avoid legal liability. In an ideal world, employees do not engage in misconduct or poor performance and therefore you do not have to invoke discipline or even discharge to correct their behaviors.
Where discipline has not been necessary, formal performance evaluation systems can help you fine-tune employee performance. Employees want the feedback and having such a system in place allows you to offer constructive input without the employee feeling threatened. The process can also provide an opportunity for you to offer additional training, guidance and other types of support to help the employee perform better. A good performance evaluation system will also allow you to assess your bench strength and plan for orderly succession of roles.
Other more sophisticated systems for performance coaching can include 360 degree reviews, individual coaching either from within or outside of the organization, and even professional interventions.
Step 4: Getting Rid of the Poor
Performers
If all of your attempts to set expectations and rehabilitate poor
performers fail, the last resort is transitioning poor performers
out of the company. Effective termination of employees helps to
eliminate the poor performers and sends a message to the remaining
employees that they must meet your expectations or suffer the same
consequences. This is the most negative of the performance
management tools but its utility can't be denied.
Summing It All Up
Rather than reacting and finding ways to get a poor performer to do
a better job after a problem surfaces, you should look at
performance management as beginning when a job opening is created.
Invest in the preliminary activities of recruiting, screening,
orienting, training, setting expectations and creating effective
performance evaluation systems. The ultimate goal is to get
high-performing employees and to avoid disciplining and discharging
poor performers. Achieving this lofty goal will be best for your
business and help to avoid or at least minimize your exposure to
expensive employment litigation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.