Managing a team of performers can be challenging for any company. From tracking sales to initiating HR plans and making sure administrators are keeping up with their duties, taking charge of performance management is essential to creating a thriving business. One of the best ways a company can execute performance management well is through the use of incentive compensation programs, as well as by focusing on communication through a balanced approach. Here are a few of the best ways an executive can plot out and execute a comprehensive performance management program:
Set clear goals
The first step toward improving performance management at any company is to set clear goals for employees and management alike. These goals may include improving sales numbers, bringing in new clients, retaining current clients or improving administrative practices. No matter the goals, it’s important for businesses to make these clear to staff.
Executives should take the time to really focus on what a company wants to change and improve in meaningful ways before communicating these goals with staff – another vital step in the performance management process. One way to narrow down the focus of developing a team management strategy is to consider a company’s mission statement and goals in an attempt to align these goals with individual employee performance. Sometimes, the goals are right there in front of a team in the form of a mission statement, which should never be ignored.
Communicate with and engage employees
Getting employees on board with a new performance management strategy is key to a smooth transition. Executives should hold company-wide meetings to inform staff of changes so team members are well aware of what will be adjusted and what will stay the same.
For example, a popular way to change company culture and improve performance management tactics is to implement a new or improved incentive compensation program. Incentive compensation management is the cornerstone of many businesses that are looking to drive revenues and improve morale. ICM plans are well known for their abilities to increase employee engagement – when workers know their efforts will be rewarded with financial or other rewards, they are more likely to engage in their jobs and go the extra mile around the office. It is inevitable that some workers will be resistant toward changes in performance management, which is why strong communication and an emphasis on employee engagement are paramount to the success of the performance management process.
Use incentive compensation software
Even after communicating with staff about upcoming changes, the implementation process itself can still be tricky. To counter these challenges, many companies have made the switch to automatic processing and incentive compensation software. Incentive compensation management software uploads sales data on a daily basis, ensuring accurate record keeping and trustworthy data analysis. ICM software allows executives to responsibly keep an eye on employees, tracking their daily and weekly sales numbers, client retention rates or completion of administrative duties. All an executive has to do is sign on to his or her personal cloud-based account, at which point they will be able to see performance-tracking tools and will have access to ICM data, industry trends and more.
If an executive sees an individual struggling to sell a certain project or is losing more clients than is expected, a supervisor can sit down with the employee to ask about their performance and how management can help the employee reach their performance goals. Or, if an employer sees a particular employee thriving, an executive can acknowledge this positive behavior with a merit increase, bonus or other ICM reward.
