Building blocks of a performance management system

A good performance management system will contain the following elements:

Recruitment

• Recruit on behaviour and skills; train knowledge
• Do not accept less than you require
• Use behavioural event interview questions
• Consider using in-tray exercises to determine ability to prioritise
• Check references
• Use probationary periods.

Training

• Induct thoroughly
  • Induction is the time when the new employee gains their sense of purpose
• Do not limit yourself to formal face-to-face and e-learning modules
  • Toolbox meetings
  • Quizzes, crosswords, puzzles
  • Competitions
  • Work site role plays
• Design and create measures for the training outcomes you want before designing training
• Involve your people as trainers
• Train managers and supervisors to coach.

Coaching and Counselling

• Give fast, accurate, specific and timely feedback
• Set up formal coaching sessions
• Use experienced empathetic people in non-supervisory roles as coaches too
• Counsel for poor performance and poor behaviour
  • The ninety percent of people who do not require counselling will be watching to see what you do.

Appraisals

• Set up formal appraisals no less than annually, preferably every six months
• Appraise against quality, quantity, job knowledge, initiative, reliability, adaptability
• Have supervisor and employee complete the appraisal and compare
• Set new goals for next appraisal for everyone
  • Include completion of training as a goal
• Career plan for those who want a career.

Reward and recognition

• Use rewards that can link directly with the performance in the memory of the recipient
• For monetary rewards use a salary plus pool system for best results
  • Create a pool of funds
  • The availability of the pool is triggered by a single measure which the team can influence
  • The pool is divided amongst a team using a set of measures which the individual can readily influence
• Publically recognise performance
  • e.g. League tables for teams, outstanding employee
  • Take care not to embarrass shy people.

Career development

• Publish typical career pathways
  • Identify competency development required along the pathway
  • Consider establishing coaching roles as additional pathways
• Succession plan for leadership roles and key operational roles
• Use assignments, project teams and temporary transfers to stretch and train people.