Performance management tips: getting the most out of your team

Performance management is an integral part of developing any team. It enhances alignment between managers and employees while supporting the overarching goals of the organisation.

Whether you are dealing with new recruits or long-standing team members, performance management serves as a valuable tool for evaluating an individual’s performance and identifying areas for improvement.

A successful performance review will not only benefit the employer through increased productivity but will also provide employees with clarity on how to advance their careers.

This article outlines key performance management tips aimed at optimising this process.

What is a performance management process?

In recent years, much debate has surrounded the efficacy of performance reviews. However, when executed correctly, research indicates that timely feedback can be a valuable management tool that significantly boosts employee engagement.

A performance management process ought to be clear and structured to ensure alignment between you and your employees. It is essential that your review process enables employees to voice their opinions while establishing well-defined objectives by the end. A successful process incorporates the following steps:

1. Setting and agreeing upon professional and personal objectives in advance through a one-on-one meeting. These objectives should be documented and signed off by both the employee and their manager.
2. Assessing the employee’s performance against the agreed-upon criteria. This helps to ensure transparency and a shared understanding of expectations.
3. Evaluating what managerial direction can be provided to maintain and improve performance. This is essential for continuous growth and development.
4. Providing feedback to the employee in a constructive manner during a performance review. Thoughtful and clear feedback is crucial for employee progression.
5. Setting and agreeing on targets and areas for development with the employee. For instance, increasing the customer retention rate by 10% by the end of Q2 can be an effective goal.

Conducting a performance review

Performance reviews will differ depending on whether employees are new or long-standing. New recruits typically undergo probation reviews, while established employees may partake in quarterly, bi-annual, or annual appraisals.

Probation reviews

Probation reviews serve as a mechanism to determine the suitability of a new hire. These reviews detail key aspects of performance, including:

• They are conducted monthly and generally last between three to six months; employers can extend this period if necessary.
• New objectives and training development are established on a monthly basis to help the new hire fully integrate into the organisation.
• These reviews assist managers in identifying any areas of concern at the earliest stage.
• Employees can consistently track their progress through regular feedback.
• They may result in the termination of an employment contract if objectives are not fulfilled.

Annual performance reviews or appraisals

Annual performance reviews or appraisals offer a wider lens for employee evaluation. The features include:

• Conducted quarterly, bi-annually, or annually, these reviews measure employee performance over an extended duration.
• They provide a platform to discuss long-term career goals and trajectories.
• Managers can revisit new objectives or areas for development aligned with business aspirations.
• These reviews help highlight training opportunities and demonstrate how the organisation can support employee growth.
• They can serve as a benchmark for potential promotions or salary increases.

Measuring employee performance

When formulating performance reviews, it is imperative to establish criteria against which team members will be evaluated. These criteria should consider individual contributions as well as the wider work environment.

It is advisable to define each criterion so that employees clearly understand what is expected of them. These criteria will serve as the benchmarks for measuring the employee’s performance against the objectives previously set, whether established in the prior year or during a probation review.

Examples of criteria

Here are some essential criteria to consider:

• Listening: This encompasses following instructions, retaining information, and allowing others to speak without interruption.
• Teamwork: Employees should demonstrate their ability to integrate with the wider team, both individually and in group settings, while exhibiting support for colleagues through collaboration to achieve overarching business goals.
• Leadership: Employees are expected to enhance team morale through a positive attitude, leading by example, and taking the initiative beyond standard responsibilities for the benefit of the organisation.
• Productivity: Using effective time management skills to meet objectives and enhance productivity is crucial.
• Goals and Target Achievement: Employees must consistently achieve Key Performance Indicators (KPIs) and individual goals.
• Quality of Work: Ensuring that all tasks are completed to the highest possible standard is essential. Referring to audit reports can be useful in this assessment.
• Attendance: Employees should maintain punctuality, adhere to scheduled breaks, and follow the company’s leave policy concerning sick leave (while being mindful of employee rights regarding protected leave).
• Company Values: It is vital that employees embody company values in all interactions with colleagues and customers, demonstrating an active interest in achieving business aims.

Objective setting

Ensure that any objectives you set align with both organisational goal setting and the employee’s job description.

When setting goals, it is considered best practice to employ the SMART framework. This approach aids in formulating clear expectations, enabling a structured, transparent, and measurable set of objectives, thus providing the employee with the best possible chance of success.

SMART objectives

SMART objectives should be:

• Specific
• Measurable
• Achievable
• Relevant
• Time-bound

Objectives should encompass both professional and personal goals:

• Work Objectives: These contribute towards achieving broader business aims. Work objectives drive quantifiable business results and can often be measured through KPIs.
• Personal Objectives: Focus on the personal development of the employee, such as improving soft skills or enhancing expertise in a specific area through training, courses, or additional responsibilities.

Examples of appraisal objectives

Some examples to consider for work objectives could be:

• Increase monthly sales revenue by 10%.
• Reduce average call handling time to 10 minutes per customer.
• Acquire at least 20 new customers in Q2.

For personal objectives, you could encourage:

• Acknowledging team members by congratulating them on their successes.
• Developing presentation skills and committing to speaking at a minimum of two company events.
• Improving time management abilities by assigning timelines to tasks and utilising a planner.

With each objective, it is crucial that managers articulate how they contribute to the broader business aims. This not only ensures the objectives foster organisational growth but also aids employees in understanding the significance of their aspirations.

Delivering feedback as part of a performance review

Providing regular feedback entails striking a delicate balance between positivity and honesty. While performance appraisals offer formal assessment opportunities, managers must frame feedback constructively and clearly to avoid discouraging employees.

Recognising employee success

Performance reviews serve as an invaluable opportunity to acknowledge your employees’ contributions—a practice that should feature in every review. Recognition during these discussions reinforces desired behaviours and is essential for incentivising ongoing high performance. When considering positives, reflect on noteworthy results, commendable actions, and newly acquired skills.

Highlighting areas for development

All employees possess areas that require improvement, and managers must communicate this feedback constructively and with sensitivity to the employee’s wellbeing. Rather than solely outlining issues, it is imperative to present tangible solutions simultaneously. Negative feedback presented without constructive guidance risks leaving an employee feeling demotivated, contrary to the purpose of the performance review.

Tips for delivering constructive feedback

To effectively convey constructive feedback, consider the following techniques:

• Use factual, concrete examples to emphasise your points.
• Maintain an uplifting tone of voice to promote a positive atmosphere.
• Frame any criticism as an opportunity to learn, following it up with suggested solutions.
• Utilise open body language, including eye contact and a friendly smile, to put employees at ease.
• Conclude the feedback session on a positive or optimistic note to encourage a forward-looking mindset.

Tackling employee underperformance

Addressing underperformance necessitates an open and honest discussion. This dialogue provides employees with the opportunity to acknowledge and explain the reasons behind their performance shortfalls.

When assessing underperformance, seek to identify its root causes by considering factors such as health, attendance, work ethic, or failure to meet KPIs. The outcome of these discussions will dictate the necessary course of action.

In certain cases, it may be essential to reinstate the employee on probation, arrange more frequent reviews, or, in extreme cases, terminate employment if no improvement is observed.

Using 360-degree feedback

360-degree feedback is a method that solicits anonymous and confidential feedback regarding an employee from peers, managers, direct reports, and occasionally clients. Employees are evaluated on a range of behaviours that reflect how others perceive their workplace conduct. The ultimate objective is to identify the employee’s strengths and potential areas for continuous improvement.

Advantages of 360-degree feedback

Implementing 360-degree feedback has several advantages:

• It offers a platform for anonymous and candid feedback, promoting honesty.
• The process cultivates a stronger sense of self-awareness among employees.
• It covers a comprehensive range of behaviours relevant to performance.
• Respondents have the opportunity to submit additional comments for further insight.
• The method gathers views from multiple colleagues to construct a holistic understanding of the employee.

Potential drawbacks

However, several potential drawbacks should not be overlooked, including:

• Respondents may struggle to provide objective feedback, especially with close relationships to the employee.
• Negative feedback can adversely affect team morale.
• Designing and implementing a 360-degree feedback process can be time-intensive.
• If respondents lack intimate knowledge of the employee’s work, the feedback may be uninformed.
• A robust 360 feedback process requires commitment from all employees, starting with senior management.

Selecting respondents

When implementing the 360-degree feedback mechanism, it is advisable to include a larger pool of respondents (ideally between 8-12) to attain a fair consensus about the employee. Having too few respondents risks skewing results based on individual opinions, compromising the overall representation of that employee.

When selecting respondents, aim for a diverse mix spanning peers, direct reports, and managers. Choosing individuals who work closely with the employee allows for more accurate observations of behaviours. However, be cautious not to include too many respondents who have a personal relationship with the employee, as this may lead to biased feedback.

Providing feedback

It is essential to train your management team in effectively interpreting 360-degree feedback. Managers should remember that while it can identify strengths and weaknesses, it may not always reflect the employee accurately. Therefore, they must exercise discretion, balancing the 360 feedback with their insights and experiences for a comprehensive assessment.

In conclusion, effective performance management encompasses a structured approach to setting clear objectives, providing constructive feedback, and fostering employee development. By prioritising open communication and support, businesses can enhance productivity and employee satisfaction, ultimately fostering a thriving workplace culture.