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Maintaining an efficient and productive workforce is essential in today's competitive marketplace. For this reason, smart and effective management must be in place in order to maximize
output from your employees and keep your company moving in the right direction at all times. While good managers must be proficient at a number of different skills, their ability to
evaluate employees' performance quickly and accurately is critical.
This is only truly possible with the right built-in business processes, as strategic management requires that important performance metrics be tracked and recorded. This provides managers with the tools they need to make informed decisions about their workers - as productivity figures will be accessible at the click of a button. Using performance to drive compensation and evaluation is an efficient and fair approach as it can provide many different benefits to your bottom line.
This approach also tends to promote healthy competition among employees, as they will all be able to see where they stand in the department rankings. Trying to outdo one another or improve their standing when the next report comes out can markedly boost sales, accuracy, customer satisfaction or whatever metrics are being tracked and posted.
While using business processes to continuously track figures like employee sales is extremely effective, you can also choose other metrics to record. This custom approach is quite helpful, as you can tailor analytics for every department. For example, while the sales department will want to collate the amount of sales accrued by each associate, the customer service department can track customer satisfaction scores, average time per call to resolve an issue or retention rates. Even business that takes place outside of an office environment can benefit, such as tracking accuracy of employees on the receiving or shipping dock in a warehouse or the number of pallets received per hour. Thus, whatever the department, relevant details can be tracked, compiled and standardized.
This makes the manager's job far easier, as they can provide honest and open feedback in the hopes of turning around a sub-par employee's performance.
In addition, if it is necessary to let an employee go due to unacceptable productivity numbers, they won't be able to accuse management of favoritism. Removing emotions from managing not only means less stress for supervisors but it also eliminates any grounds for legal action, like a wrongful termination suit that an employee may otherwise have a legitimate case.
For sales associates, often their entire pay is based on commission and if they don't sell they don't earn. In other departments, this approach isn't feasible but it is possible to have a portion of each paycheck determined by performance. Classified as incentive pay, this can be calculated based on individual, shift or department performance. For example, in a customer service call center, average time per call or customer satisfaction survey ratings could determine the amount of incentive pay.
In contrast, some businesses use productivity metrics to decide who is worthy of receiving bonuses or how big these should be. Or, they hold regular competitions, with the top performer earning a special prize such as a weekend getaway for two. While these types of incentives are common in the sales world, with the right business processes in place to keep track of productivity, it is possible to bring this beneficial approach to many different departments. The effect is to pay for better performance, which can meaningfully increase your company's output (1) and profits.
They say that good help is hard to find but paying well for superior performance will help your company retain top-notch employees. In addition, tracking the right metrics will allow management to provide workers with clear expectations. This will eliminate a common workplace frustration, not knowing what the boss really wants. Instead, employees will know exactly how their performance will be evaluated and rewarded so everyone stays on the same page. This allows for better cohesion within a department and more fulfilled employees, as they'll have assurance that if they keep their numbers up, their supervisor will remain satisfied.
In order to manage effectively and strategically, supervisors need the right tools and information. Having built-in business processes to track the productivity of their team, offers a number of positive benefits. These include the ability to easily spot non-performers in their department, post stats to encourage healthy competition, inform each employee about how well their doing, remove emotion from the management process and even make expectations for performance crystal clear.
In addition, these metrics can be used to calculate performance-based pay incentives, which can significantly boost productivity across your entire enterprise. For all of these reasons, built-in processes are essential for peak performance, not only of your employees but for the success of your business as well.