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Employee Performance
Are you fed up with the return on investment you experience when you subject people to your current performance appraisal process? Are you changing your approach to performance evaluation and review? There is a better way to approach performance management and development. The performance management process can help you create a work environment that helps employees succeed.
Performance management is about having everyone succeed and improve. In order for that to happen, the manager and the employee have to work together in a communication process to identify barriers to success (whether they are from the employee or the system of work), and to build plans to overcome those barriers. Focus 90 percent of performance management time on performance planning and communication throughout the year. And, move to specific measurable objectives. No system is perfect. What we need to do is find ways to make performance better, and sometimes that means the manager and the employee need to figure out the best method to use in their unique situation.
We recommend that managers have informal short talks once every few weeks - that's like five - ten minute how's it going talks. Hold quarterly discussions that are a bit more organized. Schedule a year end review that is really just a review. By the time the year end review happens everything should have been discussed before. No surprises.
Be forward looking. No blame. Problem solve. Hold ongoing communication. No surprises. Forms are trivial and unimportant to the real purpose. All barriers need to be considered, not just employee-based factors. Flexibility to negotiate evaluation methods on an individual manager-employee basis is important.
Pay for Performance Software System
The PFP Software System that IMS has created is a vital part of the success of the program. Without this system it would be virtually impossible to manage the program to the level needed to achieve optimal results. Many companies have developed an expertise with Microsoft Excel. Although Excel is a powerful tool at analyzing data, it cannot provide the three-dimensional analysis needed to run this program in an administratively efficient manner. For instance, the software must have the ability to show not only how every employee performed this week, but also how each employee has performed over their lifetime with the company and how each production variable has impacted employee productivity. Without a comprehensive system the administrator will be overrun by data and the inevitable QC errors will lead to disgruntled and frustrated employees.
Although the IMS PFP Software System manages multiple client accounts, there are dozens of specific variables for each client. Examples of variables that are client specific include:
• Labor Algorithm
• Production Goals
• Bonus Levels
• Bonus Amounts
• Labor Costs
• Bonus Frequency
• Secondary Metrics
• Electronic Interface Functionality
• Reports
The IMS PFP Software System is hosted on an IMS server and is accessed by the IMS Administrator over an RDC connection. At this time clients are not given direct access to the program although a web interface for certain functions is planned for the future.
Reports
The PFP system captures a significant amount of data on the work performed by each employee and their level of productivity. This information can be a powerful tool for Supervisors and a motivating influence on employees. The key to effective reports is that they are accurate and timely. The PFP system provides Daily Reports that show the results from yesterday’s shifts as well as Weekly Reports that show productivity levels and bonuses earned for the week.
Specific reports include:
• Daily Production Reports – gives a detailed breakdown of each task completed by the employee and a summary of his or her results for the day, including bonuses earned.
• Daily Performance Report – Lists each person’s daily results, the person’s lifetime average productivity and an adjusted goal for the employee based on length of employment. This report helps the Supervisors identify which employees are not meeting goal and adjusts standards for new hires.
• Daily Non-productive Work – This is a breakdown of all non-productive hours logged in the system. The Supervisors should be rewarded for minimizing these hours. Although non-productive hours do not impact an employee’s ability to achieve bonus, any bonus they do earn for the day does not include the hours they spent on the non-productive work. Therefore the employees, the supervisors, and the company all benefit from reducing these costs.
• Facility Summary Report – This report provides management with a summary of daily productivity and labor costs by shift.
• Weekly Production Reports – Same as Daily, but shows an employee’s production for the week.
• Weekly Bonus Reports – Gross and Net bonuses earned by each employee for the week. Net bonuses may be higher if there was overtime (to comply with state law) or lower if the employee had an unexcused absence or quality issue.
• Individual Productivity Reports – for any specific time period on an as needed basis for employee reviews or counseling.
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