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CEO Performance Management Snapshot

Employee Performance is one of the few remaining sources of true competitive advantage.

CEO Performance Management Snapshot

Employee Performance is one of the few remaining sources of true competitive advantage

Why Employee Performance Management?

Employee Performance is one of the few remaining sources of competitive advantage. Organisations set objectives for executives but neglect the remainder of the workforce. If its good enough for the executive team, then why is it not good enough for our employees? Employee Performance Management systems provide a mechanism to set performance expectations, to align your employees with the strategic and operational plans and drive the elements of the plan that you need to achieve – profit, service outcomes, innovation.

Why Bother with Employee Performance Management?

Independent case studies verify that financial outcomes can be improved by up to 25% sustained over several years by applying non financial metrics to individuals. Employees typically constitute 60% of your operating costs and you need them to be performing at an optimal level.

What Employment Performance Management is not

Employee Performance Management is not:
  1. ‍The traditional Appraisal or Annual Review process found in most organisations. We believe that an appraisal system has little or no connection to achieving business outcomes.
  2. ‍A punitive process. In some organisations, the term performance management is used as a punitive process “Bob needs performance management as he is not achieving”. This is not the universal definition of Employee Performance Management. Employee Performance Management is the process of aligning employees to the Strategic and Operational plan and setting specific objectives that define performance.

What does Employee Performance Management involve?

To be effective at Employee Performance Management, you will need:
  1. ‍To educate your managers and staff in how to set meaningful objectives
  2. ‍A system to track how employees are tracking to these objectives
  3. ‍Ideally a link to remuneration that ties directly to the ratings of achievement. The link can be a short term incentive program, link to salary increment or an awards program.
  4. C-Level support

Will my employees like it?

Employees expect clear direction and feedback. They actually get less than they expect. This is confirmed in many studies including: 

  • ‍Seek – 2006 Job Seekers Survey 
  • ‍The Great Divide – 1st Executive 

Employee Performance Management provides clear direction to employees (through the Objective Setting process) and feedback more frequently (via short reviews) than an annual appraisal.

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CEO Performance Management Snapshot


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