Performance management is vital in ensuring business goals and targets are consistently met in an effective and efficient manner. 

As human resource professionals, we are approached regularly by clients with employee performance issues and in most cases the relationship has become untenable. The difficultly we face is that there is no documentation to suggest that performance has ever been an issue. We then have to start at the beginning and work with our client to determine the best way to resolve the shortfall in performance so a suitable outcome can be achieved. 

Performance management is communicating your expectations from the moment an employee enters the organisation, rather than waiting until there is a major issue. Employees need to know the strategic plan of the organisation and how by achieving their KPIs/goals they are contributing to the overall performance of the company.  Managers should set measurable KPIs and conduct monthly 10-minute catch ups with their staff to determine how they are tracking in the lead up to their appraisal. These meetings should be documented so that there are no surprises.

Many managers, particularly in smaller companies, think that if they say “hi” on the fly and ask how their employees are then there are no issues. The reality is underlying concerns will not be discussed in this way. Setting measurable goals or KPIs, and monitoring and documenting these, will lead to a better attrition rate, greater communication and identify training and development. Employees will also feel valued in their contribution to the company. 

Some employers will say they are too busy, but think of the cost involved in not managing your people. So someone is not performing? The next step, unless you have an internal HR manager, is to employ the services of a lawyer or HR professional to help you navigate your way through a disciplinary process, so that you don’t end up with a personal grievance. Even worse, you lose a top achiever as no one took the time to provide feedback. There is stress, time and money involved in dealing with these issues not to mention the recruitment costs in finding a suitable replacement. 

uReview (www.ureview.co.nz) may be worth considering; it's simple to use, cost effective and we have already seen amazing results with out clients.  Invest time in your people and they will invest in the company.