The importance of performance management to private employers and government departments cannot be overstated. Performance management is more than the process of evaluating and managing employees to ensure that the employer is meeting its obligations. The benefits to effectively managing employees can be wide-reaching to both employers and employees, especially when you consider the huge costs associated with insurance and fair work claims.
The benefits to employers of effectively managing employees to effectively managing employees can be wide-reaching and when conducted correctly may provide a range of benefits to employers, including:
- increasing employee productivity;
- fostering and retaining knowledge and know-how;
- providing a positive workplace culture; and
- decreasing various workplace claims.
Effective performance management typically involves the following:
- clearly identifying the performance standards expected;
- setting achievable goals for employees to strive towards and providing reasonable assistance to allow them to reach those goals;
- providing employees with feedback about their performance;
- providing opportunities for employees to further develop in relevant areas; and
- rewarding employees who are achieving and exceeding the goals set.
Unfortunately, there is stigma that we are becoming more and more a “throw away” culture, where it is easier to pay for a problem to disappear early, without full consideration of the potential benefits of following a proper process and fixing a problem. This attitude means that private employers and government departments are potentially missing out on employees that might have otherwise had the opportunity to valuably contribute to the success and retention of knowledge in the workplace and ultimately may result in a bigger financial loss to the employer.