5 Common Reasons Performance Management Systems Fail

Season #3

Dr Rick Goodman leadership and employee engagement expert and the author of the book The Solutions Oriented Leader Today I am going to share with you 5 Common Reasons Performance Management Systems Fail 1 You don’t offer employee feedback in a timely manner. Let’s say you observe an employee making a critical error. What do you do? Do you stop and offer a clear correction without delay? Or do you wait a few months for the employee’s annual review to roll around? It may sound like a silly question, but you’d be surprised how many team leaders save all serious feedback for that once-a-year review… which effectively deprives employees of the ongoing, in-the-moment feedback they really need. A related problem that I often see: Companies that do the bare minimum by putting an annual review process in place, then don’t even follow through with that! If you promise your team members an annual review, it’s vital that you follow through! 2 You don’t provide employees with the right kinds of goals. Another potential problem is inappropriate goal setting. An effective performance management system will always give employees some clear benchmarks to strive for. Some of the biggest goal setting problems include: Setting goals that aren’t objective or quantifiable; goals that can’t really be measured or tracked in any meaningful way. Failing to set stretch goals; even your best employees should be given something to reach for. Goals should be attainable, but not too easy! Setting goals that aren’t aligned with the company’s overall goals, or with the goals of the other team members. 3 Not providing employees a path to improvement. When an employee messes up, or fails to meet their goals, it can be demoralizing for everyone. Remember that the function of an effective performance management system is to provide a clear path to performance improvement. Don’t fall into the easy trap of being purely punitive. Give struggling employees the road map they need to get back on track. An effective performance management system will always give employees some clear benchmarks. You don’t put it down in writing, Document Everything! Have a set time when employee reviews take place. Share the goals you set for employees, and the progress they’ve made since their previous review. Write down any disciplinary actions you must take. Your performance management system should always include clearly articulated justifications for why you do what you do. 4 Ignoring problem employees. You may not like to initiate disciplinary action; you may not want to even think about firing someone. And you may be at a loss for more positive, proactive measures to help your struggling employees. But if you have someone who is toxic or who just doesn’t pull their weight, that’s something that’s bound to have an adverse impact on employee morale. An effective performance management system will always include a framework for dealing with problem employees, rather than letting their issues fester. 5 You don’t recognize your high achievers. One more thing to note: People like to be praised, and to have their good work acknowledged. It doesn’t necessarily mean you need a ticker-tape parade for each employee who does good work but do take a minute to offer a proverbial pat on the back when warranted. This can be an important way to boost morale and keep those high achievers fully engaged. I hope you enjoyed this short lesson. please subscribe to our channel and if you learned something please like the video and remeber sharing is caring. Thank you very much for tuning in and always remember we get paid for solutions and results so keep making it happen!