Link Employee Performance Management Systems with Annual Business Strategy

Now that you have set your Company KPIs for the Year Ahead, it’s time to align the team to support it

Performance Management

Aligning your team to support Company KPIs can be completed through the performance appraisal process. The performance appraisal process involves a comparison of performance and conduct against defined standards. These standards vary from organisation to organisation, however, there are two (2) key elements that are required in the development of these standards, Code of Conduct and Key Performance Indicators.

Company Code of Conduct

The Company Code of Conduct serves as a guide for employees of the expected level of conduct and behaviour that is acceptable in the workplace generally. The performance appraisal process is a great way to re-enforced and reward employees who role model the attitude and behaviour your company wants to foster.  The performance appraisal process also provides an opportunity to help avoid situations where employees are unsure of what is considered “acceptable” behaviour.

The Code of Conduct typically includes:

  • Core Values and Expectations
  • Workplace bullying policies
  • Equal opportunity, harassment and discrimination policies.

To ensure employee conduct and behaviour are aligned with organisational expectations, it is essential that employees are aware of the company’s Code of Conduct, as well as other company policies and procedures and understand the contents.

The greater the lengths an employer goes to in communicating organisational values and standards, the less risk they will attract if relying upon these for performance management and disciplinary procedures in the future.

Organisations can employ the “Five C’s”;

  • Clearly expressed
  • Communicated
  • Comprehended
  • Applied Consistently
  • Offer Certainty

Key Performance Indicators

Key Performance Indicators describe what is to be accomplished by the individual and/or the team or department over a defined period of time.

These objectives need to be SMARTA (Specific, Measurable, Accountable, Realistic, Time-bound and Agreed).

To ensure Key Performance Indicators are fair and useful they should:

  • be aligned with the organisation’s strategic and operational objectives
  • be measured by the supervisor or by someone who is at least partially supervising the person whose performance is being appraised
  • be based on observations which are documented and job-related
  • recognise the realities of the work to be performed
  • draw on a clear, well-written job description
  • be agreed upon by the employee and supervisor.

The performance standards set out the actions, behaviours or results to be achieved that are necessary for satisfactory performance.

Simple Performance Appraisal Process

Effective performance appraisal relies on an expected level of the Company Code of Conduct and a set of behaviours and clear Key Performance Indicators established and discussed with employees. Using these, the appraisal involves:

  • observing the employee’s work behaviour and results, and comparing them against the agreed Company Behaviours and Performance Objectives
  • evaluating job performance and the employee’s development potential
  • have regular short conversations about what the individual is doing well and areas of development. If your coffee has gone cold during this conversation, it is too long.
  • acting on the results of the appraisal process, for example, through promotion, reward and recognition, counselling, training, or in some cases, termination.

For more information on how to develop and implement a fit-for-purpose Performance Management framework that improves the performance and culture of your organisation, contact WCA Solutions, we are the experts.

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