Poor employee performance is a serious problem to a business organization that is why firms need to strive to improve employee performance.
In fact, the most important first step after calculating the measures of workforce performance is to find out the reason why employee performance is poor. A business manager needs to analyze why productivity is falling and absenteeism rate is growing. Why are competitors more efficient and why so many staff are taking unexplained absences?
Usually, there is no one solution to a problem of unsatisfactory employee performance.
Top factor in improving employee performance
The most important factor in improving employee performance is adopting soft approach to Human Resource Management.
It is the common denominator running through the strategies of businesses that are most successful in motivating employees, in raising their levels of commitment, loyalty and performance.
That is why most businesses must recognize the long-term benefits of improving performance of both new and existing workers using a variety of strategies. The must consider that workers need to be nurtured and developed, so that they can develop their abilities and applies them to their work to full extent.
Strategies to improve employee performance
There are several techniques frequently used to improve employee performance including:
- Appraisals of employees. This includes regular evaluation of workers’ performance against agreed pre-set targets. When workers regularly fail to reach performance targets, then actions will be taken by management such as further training.
- Training. Training aims to increase efficiency of workers and offer them opportunities for educational qualifications to stretch and challenge. The business will also need to investing in training when more advanced technology is implemented in order to increase labor productivity.
- Quality Circles. Quality Circles which are small groups of workers might help to increase workforce performance. They are encouraged to take responsibility for identifying work-related problems and suggesting solutions to those problems.
- Information Technology (IT). Using IT can help to increase labor productivity in service industries such as hotels, resorts, restaurants, etc. where top-quality services for guests depend on having staff always on call. Technology can also improve labor productivity in the support services of booking, billing and ordering supplies.
- Teamworking. Working in teams in where groups of workers are given multi-skill training and the opportunity to take responsibility for a complete section of work can boost their productivity. Involving staff working in cell production or establishing autonomous work groups could help them to take better decisions on finding the best way to motivate the team and achieve predetermined goals.
- Financial incentives. Compensating employees for good performance can not only attract qualified workers, but also help the firm maintain competitive position with satisfied workforce protected from layoffs, sickness, injuries and disability. Financial incentives and proper rewards should be set for efficient work. This can include bonuses, profit sharing or a stake in the ownership of the company, such as employee share-option schemes.
- Management by Objectives (MBO). Adopting a system of Management by Objectives (MBO) can also contribute towards increased labor productivity. There is no point in spending large amounts on more efficient machines to increase efficiency, if the main reason for low productivity is that a poorly motivated team of workers does not know what they are trying to achieve.
The consequences of poor employee performance can be damaging for future prospects of any business organization. That is why any improvements in staff performance, even the slightest one, should be publicly recognized and fed back to all the staff.
