What are the best ways of measuring the productivity of newly promoted employees? Their performance results will define the salary for the new position.
—Promote First, Pay Later, organizational development coordinator, finance/insurance/real estate, Santo Domingo, Dominican Republic
Dear Promote First, Pay Later:
This type of pay-for-performance approach is an excellent way to focus newly promoted employees on generating desired results. Good measurements provide employees with real-time information on how well they are performing. It also provides with the data needed to determine their new rates of pay.
The best measurements are those that are:
Involving employees in the measurement process increases the credibility of the measurement—it is not your measurement; it is theirs. The higher the credibility of the measurement, the more employees commit to improve it. While all but a small percentage of employees are honest, smart organizations do periodic, random audits of self-reported results to ensure their accuracy.
Employees for the most part will try to be as candid as possible. Even so, smart companies do periodic audits of self-reported results to ensure their accuracy.
Many organizations don't measure output at the employee level; others attempt to measure too many things. Both practices lead to less emphasis on the critical few measurements that help employees gauge their success and make required adjustments. Recommendation: select no more than three important aspects of a position, then develop and implement measurements for each.
With newly hired or promoted employees, measuring activity rather than end results is often best. Results in many industries and professions depend on multiple factors, some of which are beyond the control of employees. Measuring what employees can control enables them to perfect the fundamentals of their new job more quickly.
• In real time
The quicker people receive performance feedback, the faster they will be able to either celebrate successes or begin working on improvements. Scores delayed by days, weeks and months are as helpful in business as they would be in a basketball game.
• Simple to understand
If you need a computer to figure out how employees are performing, then your measure probably is needlessly complex. Although simple measures are rarely perfect, they do deliver understandable guidance that employees need.
The method of measurement should be easy, as well. You rarely need to measure every action for a prolonged period of time. Good random sampling techniques, if consistently employed, should provide what you need with a minimum of work.
Most employees want to excel. Given the right tools and support, most employees will. Your ability to measure performance and provide employees with relevant performance information they need, makes a difference—both to them and your firm's profit line.
SOURCE: Rick Galbreath, Performance Growth Partners Inc., Bloomington, Illinois
Thanks to Crain Communications Inc. / Work Force