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What Is Employee Performance Management?

Performance management is the term used to describe the processes and policies employers have in place to maintain or improve the performance of their employees. The goal of employee performance management is to ensure that your team is working effectively and efficiently.

Effective performance management can result in many positive outcomes for businesses. These include increased productivity, higher levels of employee engagement, better team collaboration and the establishment of a high performance culture within the business. 

All of these outcomes can work to support the goals and targets of the business, through developing a team that is engaged, motivated and highly focused on their work. Therefore, performance management establishes the processes needed to reach these outcomes, and ensures they are maintained for future performance.

What Is An Employee Performance Management System?

An employee management system involves all of the steps necessary to make employee performance management happen. It establishes a framework of tools, processes and strategies which allow businesses to manage expectations while monitoring individual and team performance.

Every employee performance management system is unique to each business. However, key components of the system usually include:

Every employee performance management system is unique to each business. However, key components of the system usually include:

  • Annual reviews
  • Employee recognition
  • Goal setting
  • Growth opportunities
  • Giving feedback
  • Personal development plans
  • Performance expectations
  • Performance improvement
  • Performance reviews
  • Reasonable workplace adjustments
  • Recognition
  • Record keeping
  • Support or training
  • Two way communication

Lamont Jones has intrinsic knowledge of employment law, including best practices for employment management systems.  Therefore, we are best placed to establish this process on behalf of your business to help ensure your employees reach their potential. 

How To Manage Employee Performance

Whenever the performance of your team presents any challenges, or likewise, when wanting to maintain an individual’s excellent performance, a proactive approach is required from the business. 

All of the policies and procedures which may need to be explored are categorised under employee performance management.

The various steps involved in employee performance management can best be summarised by taking actionable steps to identify any issues and mitigate the impact they are having on the business.

By involving HR experts such as our team here at Lamont Jones, we can carefully guide your business through the employee performance management process to help ensure successful outcomes in response.

Alongside employee performance management systems, we also provide a vast range of other HR services for UK businesses

Why Is Performance Management Important?

Employee performance has a direct impact on workplace productivity. Simply put, if your team isn’t reaching their potential, then neither will your business.

What performance management looks to do is first identify any issues for concern, and then provide actionable steps to prevent negative outcomes for your business. 

By undertaking performance management, this gives both employers and employees a chance to openly communicate and provide feedback. Alongside helping to reach company targets, managing employee performance can be useful for recognising high-performing employees. In addition, reviewing which employees are contributing to the success of the business and which are not.

Therefore, performance management is a multi-faceted approach to identifying and improving weaknesses within your team, while ensuring any good work is recognised and can continue.

How Can Lamont Jones Ensure Effective Performance Management?

As a business owner or manager, the challenge with employee performance management is that is can be very complex not to mention time consuming to navigate. Yet it remains essential to the health of the business.

Our HR expertise can solve these challenges and more on behalf of your company. Furthermore, our intrinsic knowledge of employment law and HR processes allows us to add these insights and ultimately value to the process throughout. So whether you are experiencing a particular challenge within the business, or simply want to free up resources, outsourcing your employee performance management to the experts makes sense.

Ultimately, effective performance management processes are the key for both managers and employees experiencing positive outcomes. As an ongoing process, careful management of individual employee performance ensures a better alignment with your company goals and ethos.


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Outline The Aims Of Performance Management Within Your Organisation

Although ensuring a business continues to grow and move in the right direction is typically the aim of performance management, there are other objectives to consider as well. These include celebrating and rewarding employee performance. Also, supporting and improving staff performance, identifying areas for training and development along with remedying issues with processes.

When developing your organisation’s performance management strategy, you should have a mixture of goals that contribute to the success of your business and the development of your employees

Management styles can differ and your managers may require training on how to effectively deliver your performance management strategy. 

Similarly, additional resources may need to be allocated to ensure managers have adequate time to carry out performance meetings. Depending on the size of the organisation, this could include hiring more managers to reduce the size of your teams.


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Engaging With Staff Members And Their Representatives 

Individual employees are a valuable resource when it comes to developing performance management frameworks as they will already have a good idea about issues that exist and how to improve them.  Involving your colleagues in the development process can benefit engagement too – people are more likely to be receptive to change if they have helped initiate it. 

Another factor to consider is trade union representatives, where necessary, you should organise meetings to explain how employee performance management will work. This will ensure compliance and that objectives are fair.   

Involving Senior Managers In The Performance Review Process

For any performance management system to be effective and successful, stakeholders at all levels must be enthusiastic and engage with the process.

Getting senior management on board may be difficult because employee performance management processes can eat into working time. With this being said, utilising the experience and insight of senior management and the long-term benefit of effective performance management are all important in ensuring an organisation’s success. 

Managers are crucial to the success of employee performance management as they are likely to be implementing the strategies to individual employees. Managers normally have day-to-day contact with their teams – making them best placed to motivate and encourage people.

When we say think about your organisation, this includes the challenges the company faces, its overarching goals and how other factors, like the size of the business, can impact the employee performance management arrangements that can be implemented. 

Medium or smaller businesses find that informal arrangements that promote face-to-face communication may be easier and more effective. Larger organisations, on the other hand, may find it easier to disseminate responsibilities to heads of departments and look to ensure consistency in how they manage performance.

Managing Employee Performance UK FAQs

Performance management can best be simplified by taking steps to increase the value that the employee brings to the company. The process involves monitoring and assessing individuals to ensure that everyone understands the expectations of the company. Where any progress barriers are identified, a progress management system ensures the individual receives the necessary support or training to be able to overcome any issues. 

Managing the performance of employees requires taking an active role in their progression at your company. Depending on any issues raised, performance management can provide employees with training, support or resources to help them succeed. By measuring key performance indicators, actionable feedback can be given to improve individual performance.

If an employee is not meeting expected standards for performance within the company, then the first step to addressing the issue is understanding why this is the case. Once the issue has been raised and documented, a plan can then be created which may include providing training or support, or encouraging accountability depending on the nature of the issue. The performance of the employee then needs to be monitored over time to ensure progress is being made and that ultimately, the company is not being negatively impacted. 

Complacency in the workplace is when employees essentially tune out of their job and become disengaged with their responsibilities. It’s important for employers to take steps to prevent, identify and remedy complacency in the workplace, as this behaviour can have several negative consequences for the business. In some cases, employers may be unaware of the reduction in quality or output. However, employee performance management gives both employers and employees a chance to raise any issues and come up with a plan of action in response. 

Complacency in the workplace may present itself as employees becoming disengaged from their work. They may stop taking the initiative on tasks or take shortcuts which reduce the quality of their work. Another sign that an employee has become complacent is if they no longer feel optimistic about their job, career or overall development direction.

Identifying and remedying employee complacency is important, since it can have a negative impact on the business both in terms of lost productivity as well as employee turnover. Effective employee management can work to identify and reduce employee complacency.

Performance management is usually associated with poorly performing employees, though it’s equally important to ensure that high performing employees feel content and supported in their role, so that they can continue to excel at work.

When managing your star employee, it’s important that they continue to feel challenged within their role, by setting clear goals and expectations. While high performing employees should be recognised, it’s important not to go overboard with praise which may encourage complacency. Instead, their performance management should focus more on sustaining their output. Also, potentially collaborating with other team members who could benefit from their input.

Performance appraisals are part of the employee performance management process. They involve having regular performance discussions about an employee’s performance and overall contribution to the company. Sometimes referred to as an annual review, performance appraisal gives both managers and employees a chance to discuss performance or any other issues relating to the work environment.

Performance management takes many forms, but can include setting key performance indicators (KPIs) on organisational, departmental and individual levels. Goal setting in this way can help to ensure that all employees are working towards a common goal and it establishes a level of accountability throughout businesses. Going forward, employees will be assessed on the progress of any goals so that the performance of the employee can be tracked over time. 

Performance management tools are designed to help employees reach their potential, and ultimately help the business as a result. Effective performance management should help a business reach its goals and objectives. For employees, they should feel motivated to perform at their best and be encouraged to develop their skills. Overall, performance management is designed to discourage complacency in the workplace while improving overall employee engagement. 

SMART is an acronym which stands for specific, measurable, achievable, relevant and time bound. At Lamont Jones, we encourage the use of the SMART framework as part of the performance management process.

Lamont Jones – Employee Performance Management Support UK

 

Lamont Jones provides a vast range of HR services to UK-based businesses including employee performance management. 

Based in Cleckheaton, West Yorkshire, we provide a dynamic and strategic approach to employee performance management support for businesses across Bradford, Brighouse, Castleford, Dewsbury, Halifax, Harrogate, Huddersfield, Keighley, Leeds, Pontefract, Sheffield and York as well as the wider UK.

To find out more about our employee performance management services give us a call on 01924 441032 or email us at info@lamontjones.co.uk.  

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