Performance reviews made easy
Streamline your performance reviews so you can see business results.
If any CEO, or manager for that matter, were asked about their company’s most valuable asset, employees would undoubtedly fall into the No. 1 or No. 2 spot. While technology and other products may be at the center of many companies’ offerings, employees are likely the key behind their success.
That’s why it may be time to seriously think about restructuring employee evaluations so that they’re perceived as the tools they were originally designed to be — motivation to boost performance and, ultimately, increase the odds of the company’s success. If that’s not enough incentive, the costs of replacing employees can be daunting. By some estimates, it can cost a company 20 to 25 percent of an employee’s salary to replace him. As a whole, “disengagement of employees,” as lack of valuing employees has been called, can cost American businesses about $300 billion annually.
Yet, in most instances, most employees consider evaluations an unnecessary inconvenience. According to an employee performance management survey by Harris and Cornerstone, said less than half (45 percent) of people in a poll considered the feedback they received in evaluations as a fair and accurate representation of their performance. A recent Deloitte report also showed that managers feel no differently — 58 percent of corporate executives said current performance processes don’t drive high performance and aren’t an effective use of “anyone’s time”
To ensure that your company is valuing its employees — from your hiring and onboarding practices to employee evaluations, keep these 3 factors in mind when managing your staff.
By investing time in developing a new approach and new processes for evaluating employees, you’re better equipped to protect your company’s most important assets. And you’re setting the stage for your company’s success.