Performance management systems — Why everyone needs one

Author: Ian Hurst — Managing Director, Paymaster People Solutions

Key question: Why would my organisation need a performance management system?

Key answer: 5 reasons

1. It’s a great way of retaining staff.
2. It’s a great way of compelling people to talk about their performance.
3. It’s a structured way to give feedback on values and behaviours.
4. It offers an easy goal-setting process.
5. It’s a novel way of refocussing employees every quarter and ratcheting up performance standards.

These 5 reasons (and there are more) are the motivation for managers at Paymaster People Solutions to invest a significant portion of their time in the performance management of their valued employees. Our efficiently-staffed business operates with 17 highly-capable employees. This is made possible because we use an excellent online programme that is conveniently founded on a ‘per employee’ billing model. Access to the software only costs R12 per month. This makes our performance management system extremely cost-effective — there are no wasted costs.

The secret is in the details — an explainer

• This particular performance management system, facilitates the setting of goals whilst clearly outlining the kind of expectations that we have of our employees. At Paymaster People Solutions we truly support our employees’ need to understand the broad business context within which they work. This involves providing a clear understanding of where our employees fit into the company and how they contribute to the overall success of the organisation. Goal-setting starts with a company-wide executive goal-setting component. In turn, this is followed by narrower focus on manager, team and individual goal-setting components. It is critical to align our entire employee workforce with the organisation’s overarching business goals. This facilitates the setting of clear operational priorities. Bottom-line: this truly is the optimum way to foster a strong sense of individual employee-ownership in the business.
• Our performance management system encourages many opportunities to manage and coach our employees in a structured, well planned and focussed manner. Improved employee performance and engagement stems from consistent feedback and coaching. In today’s contemporary business-world, it’s becoming increasingly important (critical almost) to appoint employees who demonstrate a good chance of realising high potential. Hiring an employee for their experience alone (whilst side-lining their capacity for high potential) is not wise at all. For this reason, providing the proper training and development programmes that address performance and skills gaps is critical for the progressive organisation that truly values its employees.
• Our performance management system facilitates the recognition and reward of valued employees. The system, allows us to do this on a fair and objective basis. A good performance management system provides the perfect platform to justify your pay-scales, whilst substantiating the incremental increases that individual employees are awarded once their performance review has been completed. A positive benefit of this system, is that we have managed to eliminate the somewhat biased allocation of pay-increases that were based on subjective (gut) feelings. Instead, at Paymaster People Solutions, our pay-increases are based on objectively assessed employee performance, pre-determined values and measurable behaviours.
• Our performance management system allows management to give focused attention to measureable results. Every quarter, our managers engage their employees in short discussions. During these discussions, attention is given to actual (measureable) results that they have achieved (or not). In addition, we are able to determine what might still be outstanding in order to achieve the next quarter’s set of results. All-in-all, this results in a significant ramping-up of employee-performance which has a positive ripple-effect that can be felt across the entire organisation.
• Our performance management system facilitates easy access to employee information. Online access is the most efficient way of ensuring that our employee information remains at our fingertips. For example, our employee information is accompanied with short notes relevant to their unique set of achievements. These notes can be coupled to providing them with suitable learning opportunities to foster even more unique achievements. As an owner, (or manager) you will always be connected and informed.

To see how paymaster performance management can change your business and get everyone performing, I invite you to email me, Ian Hurst, for more information.

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Paymaster People Solutions (Pty) Ltd is a subsidiary of Grant Thornton Advisory Services Cape (Pty) Ltd
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