A

MANAGEMENT

THEBENEFITS OF

PERFORMANCE

1

What is employee performance management ........................................2

Benefits to business leaders ...................................................................3

Benefits to HR .........................................................................................4

Benefits to finance ...................................................................................6

Benefits to managers ..............................................................................8

Benefits to staff .....................................................................................10

Contents

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What is employee performance management?

Performance management is getting the right things done well.

Employee performance management involves:

Timelyfeedback

Engagedteams

Goalalignment

PerformanceManagementPerformanceManagement

Linkingeveryone’s goals to

the organisation goals

Reviewing performance against

those goals

Measuringand improving

motivation to achieve those goals

Benefits to business leadersGet your team working on the right things

of an organisation’s time is spent on work that actually contributes to the organisation’s goals.*

What if you had a way to raise performance to 40% or 50%? How much better than the competition would you be?

Build a performance-driven cultureStandards and objectives described at an organisational level, rolled down to employees... that’s how great businesses work!

*Research by two Stanford University professors Kaplan and Norton over a period of 20 years.

50%less than

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Benefits to financeReturn on investment

Organisations who use great employee performance management systems average

more sales per employee and $348,817 higher market value per employee than organisations with poor or no systems. *

I know! We had to triple check this figure ourselves. It’s real and works for all company sizes!

* Becker, Huselid and Beatty in “The Differentiated Workforce”. https://hbr.org/product/differentiated-workforce-transforming-talent-into-/an/446X-HBK-ENG

$90.586

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Benefits to HREliminate paperwork

Save up to

or 5.3 weeks of work every year per manager*.

ComplianceAre you obligated to review staff performance on a regular basis? Performance management ensures all requirements are carried out and up to date.

Fair structured feedbackFair, continuous and structured feedback to staff ensures they are more engaged.

Ensure all reviews are doneMake sure all reviews are conducted by everyone to a high standard, on time and with actionable outcomes. You need to be able to identify who has done their reviews and who hasn’t, and to follow up in a timely manner. Of course this is not an easy task if you’ve got hundreds of paper forms to sort through…

*Calculation Based on 1 manager with a team of 8 staff. Annual goal setting with quarterly reviews.

Fair, continuous and structured feedback to staff ensures they are more engaged.

192 hrs

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Errr... Can’t stop.Too Busy!!

Too busy to improve?

Benefits to managersYou’ve got better things to do

As a manager, you need to focus on mentoring, coaching and managing instead of rescuing, fixing, and saving.

Data-centric people decisionsHe’s a good guy! is not enough information. You need to use the data to make defensible decisions about your team.

ProductivityTo raise average productivity by 10% you need to look beyond your best performers. You need a system that identifies and helps you manage performance (and productivity) at all levels of the organisation.

What & howBecause if you don’t, how will you identify why objectives are not being met? Can you prove employees knew what to work towards and were actively doing it?You need to measure achievement of objectives, and consider how well your staff measure up on behaviors – how well they build relationships, how convincing they are in a conversation – that mean they’re likely to succeed in future.

Identify issues earlyIdentify staff performance issues early, before they become big and damaging.

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Benefits to staffObjective processA good employee performance management system will eliminate bias and help ensure reviews are as objective as possible.Wouldn’t you like to know that decisions about pay and promotion are being based on merit?

Staff want:• feedback. 92% of staff believe that corrective feedback improves

their performance*• regular, scheduled feedback **• fair performance appraisals. Without an ongoing objective process,

appraisals become loaded with subjective and unfair biases***

Staff want to feel valued and recognised and want clear direction on their priorities.

Engaged employees that are focused on your business priorities will lead to greater profitability.

* Zenger, J. and Folkman, J. (2014), “Your Employees Want the Negative Feedback You Hate to Give”.** Source: Zenger, J. and Folkman, J. (2014), “Your Employees Want the Negative Feedback You Hate toGive”.*** Source: Rosenzweig, P (2008), “The Halo Effect”

Our clients“We used manual forms for performance management; it was a nightmare. Everyone hated it, most of the time the forms were never filled in. Now doing a plan or review takes minutes, I know who has done it and it’s all in one place. “

Claire HughesHR @ WebPrint.

“We’ve been doing performance management for years but it’s never been more than an annual event. WorkCompass has made it an on-going process now. As a result we’re all getting a lot more of the right things done”.

Ros O’Shaughnessy, IMI