Maximizing Employee Performance

Effective Performance Management

• Lack of clear understanding of management's expectations is the primary cause of subpar employee performance

• Clear and consistent communication of goals, objectives, and priorities is essential for maximum productivity

• Goals and objectives must be reasonable and achievable to motivate performance

• Tracking performance on an ongoing basis is essential for success and helps employees maintain focus

• Breaking down big goals into subgoals reduces anxiety and makes the task less overwhelming

• Measuring and managing solely based on easily measurable data is a huge mistake

• Performance evaluations should include a review of job responsibilities and observed behavior and performance related to those responsibilities

• The annual evaluation is an effective means to ensure agreement on expectations and clear understanding of how to achieve them

• Employee compensation is closely tied to self-worth and status among fellow employees

• Total compensation includes direct monetary items such as hourly rate and performance bonuses, as well as benefits such as paid vacation and sick time, health and life insurance, and retirement benefits

• Changes in pay rates or performance bonuses are commonly tied to the employee evaluation process

• The annual evaluation is an ideal time to reward employees with a pay increase directly tied to a glowing evaluation.The Importance of Tying Performance to Rewards

• A pay increase that is less than expected should be tied to a substandard evaluation to show a clear relationship between performance and rewards.

• Positive evaluations with no reward and pay raises across the board that are unrelated to performance should be avoided.

• Failure to tie performance to rewards can confuse employees and harm their morale.

• Providing some type of reward, no matter how small, that is tied to exemplary performance and evaluation is crucial.

• Announcing in advance if no raises can be given will help separate individual performance from compensation issues.

• Understanding, appreciation, and time should be given to employees in situations where no raises can be given to minimize damage.

• The across-the-board raise rewards all employees equally, regardless of their performance, commitment, and dedication to the company.

• Two separate pools of funds for cost-of-living adjustments and exceptional performance can make all employees feel appreciated and still recognize excellence.

• There are situations where this type of pay raise strategy is mandated, and it should be acknowledged and understood.

• Unavoidable situations such as union contracts may make it challenging to tie rewards to performance.

• Positive evaluations with no reward and pay raises across the board that are unrelated to performance should be avoided.

• Providing some type of reward, no matter how small, that is tied to exemplary performance and evaluation is crucial.