While many employees wait to start receiving their annual perks again when the economy picks up, many employers have questioned the need to continue with the way things used to be. Changes in the economy have taught them to cut redundant positions, maximise staff skills and redistribute jobs. Perks are increasingly becoming the means to keep and attract the ‘right talent’ instead of ‘any talent’ as the world becomes increasingly competitive and requires ever-increasing standards of output.
According to Manpower Group South Africa, for employers this has meant a rethink of rewarding and keeping employees and many have turned to Annual Reviews and Performance Appraisal systems in order to achieve the results and staff compliment they desire.
Manpower Group South Africa MD, Lyndy Van Den Barselaar believes that for many employees this lack of a ‘given’ or ‘expected’ bonus has left them feeling ‘left out in the cold’ but new thinking proposes a harsh reality – performance is the only way to climb the ladder, earn perks and even stay employed.
“For businesses, this means the implementation of what can become very intricate and time consuming procedures in order to measure and evaluate staff performance. However, the benefits far outweigh the added administration and it’s important for businesses to see them as a tool to improve the running of the business, not a bugbear. It is crucial however to start these programmes at the onset of the year in order to reduce any confusion that may arise due to programmes that are brought on board midway through a year, effectively creating two different systems which need to be kept track of,” says Van Den Barselaar.
Many employees tend to have a negative outlook and push back on these programmes, as they’re sometimes perceived as micro-managing or as though they are being ‘checked up’ on. However, the harsh reality is that employees who perform should have no qualms as to programmes measuring their performance, and this may be a businesses first indication of which individuals’ performance may be lacking.
“There are various systems that can be implemented for annual reviews, but it is essential for businesses to get assistance in setting them up initially and to understand how they work. There is a very definite psychology behind the implementation of Annual Performance Review systems and they need to be conducted correctly in order to achieve the desired outcomes,” explains Van Den Barselaar.
Properly implemented Annual performance review systems, which are run on a monthly basis, don’t only help reviewing employee performance for perks at the end of the year. They also help management and staff see where they are performing well or which areas of their performance require more attention throughout the year. This gives the employee the chance to remedy problem areas and not get a shock as to their performance appraisal at the end of the year.
“Many employees are often under the impression that they are giving a stellar performance by only concentrating on the one or two aspects of their duties that they perform well. Often, the interaction afforded by a monthly review can ‘open their eyes’ as to areas where they may be lacking,” explains Van Den Barselaar.
Performance appraisals are becoming ever more common in most business and it’s important to remember the reasons and benefits for implementing these programmes as this will go a long way to getting the most out of them. They allow a business and employee to measure their success, get and give feedback, get recognition and motivate the employee. Motivation is an important part of the process as it is easy for employees to regard the process as a demotivational one, if they take constructive criticism or areas that require improvement as personal failure.
Despite the benefits for business, the positive side of performance appraisals is that employees who really do perform, get the recognition and rewards they deserve, increasing their motivation and productivity. It also allows employees to train or skill themselves in areas that may need improving, and thus improving their chances of rewards or promotions.
“Bonuses and increases are no longer the given they once were, they are now becoming the payment for value received,” concludes Van Den Barselaar.
