Make no mistake, the greatest investment a business can make is in its people and an effective performance management system it is the ultimate key to building a high-performance company. The challenge for small to medium businesses is that the demands on the employee performance management system grow exponentially as the business picks up steam. This is especially true in high-growth companies as their growth quickly outpaces the capability of the system even if there is one in place.

Businesses that Go Slow, taking the time to invest and build the infrastructure that meets their needs today and the future, will best position themselves for success. The important elements of the employee performance management system include the five basic employee lifecycle components: Find, Develop, Direct, Motivate, and Retain.

Finding the Best Talent

In today’s business, competition for talent is undeniable. Businesses can put themselves at a competitive advantage by creating a comprehensive process for recruiting talent. High performers produce four times greater results than those of an average employee and drive a significantly higher return on investment (ROI). Organizations that implement a comprehensive process are more likely to identify and acquire these top candidates than those companies hoping to get lucky. This process includes such steps as identifying why the position is available; developing hiring specifications; detailed job descriptions, and talent requirements; and defining your sourcing, screening, and interview strategies.

Developing Top Talent

Successful businesses recognize that the investment in hiring a new employee is only the first step towards developing an effective workforce. Once hired, the real work begins—developing employees to reach their full potential.

Directing Performance

A highly effective workforce requires consistent direction and alignment – it is absolutely critical to the overall success of the company. In order to be effective at directing performance, each individual must know what needs to be done, how it needs to be done, and the impact on others. Only after they identify the responsibilities of each job and choose the right measurements can management effectively direct performance.

Motivating Excellence

A motivated, excellent workforce is the signature of a company in the Driving Zone. Oftentimes, leaders confuse morale and motivation or use them interchangeably. The reality is that they are mutually reinforcing aspects of a highly effective organization.

Retaining Top Talent

After building a highly-effective workforce, it is imperative to retain them. Without a retention strategy, companies are exposed to promises of higher pay, less stress, more flexibility, and better career opportunities from outside recruiters. The cost of turnover is often estimated as high as 150 percent of annual salary. Companies must address both the causes for turnover as well as the underperformers.

Business leaders often refer to their employees as their most valuable asset, yet many have not invested the time and resources to develop comprehensive employee performance management systems. Without a plan of action, a business is only generating a small ROI and depriving themselves and their employees of the opportunity for optimal success.

This article was taken from here.



Leave a Reply