If your organization does not have a performance management process in place, economic conditions make it even more critical that you implement one. If you have a process in place that is not functioning well, now is the time to improve upon it. The economic downturn makes it critical for us to be able to access accurate performance information. For a discussion on why this is important, listen to this SuccessFactors audio cast. In the current economic climate, employees may perceive a new performance management process or system as a threat. Employees may react with fear, anticipation or relief.

Operating with a poorly-functioning performance management processes costs us. If the system is not working, poor performers may not be dealt with, top performers may not receive the recognition they deserve, employees may not be given targeted opportunities to build skills and employees may begin to feel complacent or unappreciated.

When implementing a new process or system, we must understand how employees may react. This information will guide the communication plan. Poor performers may fear for their jobs. Top performers may need to be reassured that the new system will reward their efforts –whether it be by compensation, job retention or advancement opportunities.

Experts recommend that we consult with end users about their needs when we are considering a new performance management process or system. Questions can include the following:

-what will make the system easy to use for managers?
-what do all end users need from the system?
-what information should the new system provide to upper management?
-how would employees like to use the system?

Furthermore, employees need to understand how suggestions are incorporated, how the new system will function and how it can be used to the fullest. After the system has been pilot tested, user feedback needs to again be integrated, just as the feedback from users once the process “goes live” throughout the entire organization does.

While a performance management process exists to help employees to improve performance and understand how they are performing in addition to help them them to succeed and build skills, we cannot ignore its role in job cuts. A new performance management process may well result in some employees being terminated as performance expectations become more transparent. The question then becomes “what is the best way to handle layoffs?”

According to Rob Bernshteyn, organizations who handle necessary layoffs in a “sloppy fashion” or who “wait too long” only prolong the stress. He suggests in his audio cast that organizations needing to lay off employees do so in a swift, consistent fashion. This is for the benefit of both the departing employees and the remaining ones. 

Understanding the capabilities of existing talent is critical to knowing how to keep a company afloat.

References:

Bernshteyn, Rob. Managing Talent in a Changing Economy. People Performance Radio. [www.successfactors.com]. October 27, 2008.