How can performance management increase your bottom line?
So your wondering how you can increase the performance and ultimately the bottom line for your company. Employees are the life blood of all organisations and in many ways the performance of your team can decide whether your company succeeeds or fails, in short they can make or break your organisation. Your company offers the best service, the best products, the best prices and more but these facts can prove to be nothing more than words if your team dont wish to embrace what your organisation or business is about or what it does. Here are three tips that will help improve the performance management of your employee’s and ultimately lead to an increase of your bottom line.
1.Engage Your Employee’s
Engage your employees by linking their personal goals with the overall goals and objectives of your business. Educate and train them on how to reach objectives that your company has set out and work with the employee’s in order to get them to have a sense of care about what your business is trying to acheive and what they are doing to get there. Many studies have proved that employee’s who engage with their employers and their business objectives tend to perform way beyond the call of duty with a view to help drive a business forward. Train your employee’s to try to gain increased customer satisfaction that is way beyond that of any of your competitors. Pair your employee’s correctly with the best matched supervisors and managers and build a good three way relationship between the company executives or owners the supervisors & managers and the employee’s. This step is crucial and will help ensure that all involved will stay engaged which will ultimately result in an improvement on the bottom line for your business.
2. Performance Management
Many organisations engage in performance management once in every year. This represents a missed opportunity as many employee’s see this as the only time in a year that they get the oppotunity to engage with their employer or managers to discuss the progress they have made throughout the year. Communication is important and this represents somewhat of a breakdown in communication throughout the rest of the year. Performance management should be a frequent and ongoing process. When team members receive feedback it can highlight areas of weakness and this feedback can help management re evalute these areas with a view to concentrating their efforts in order to make improvements. Set up a performance management system that evaluates employee’s on a regular basis.
Great talent can bring great things to your business or organisation. When carrying out performance management it is important that there is a mechanism built into the employee’s salary that makes rewards payable to them for making gains and reaching company objectives. Many companies create a performance based salary that will triggger bonuses and financial incentives which are identified when the annual employee performance review is made by company management. Set up aperformance pay related salary that will automatically trigger these bonuses when objectives and goals set by mangement have been achieved by the employeee and make them aware of how happy the management team are with them reaching these milestones.
These tips have proved to be successful when used by many businesses in the past. Implimentation of these 3 key factors has also proven in many examples to have ultimately increased the bottom line.