Motivate your team with effective Performance EvaluationBusiness advisory
During the pandemic, entrepreneurial professional services providers have faced many of the same challenges, with Human Resources Management (HRM) ranking among the toughest.
Some were unfamiliar with this aspect of managing their firm pre-Covid, and now face an even harder task following the shift to online working with minimal social interaction. Keen to preserve their firm’s culture and sustain staff motivation, they know they need a process but are not quite sure why, or how to go about it.
*This article is taken from a segment of the Professional Core Competencies Webinar. The complete webinar is available online.
The link between HRM and Performance
“There is a direct relationship between effective Human Resources Management (i.e. hiring qualified staff, paying good salaries, performance evaluations, benefits packages, etc.) and high standards of performance.”
Just because an employee is getting paid well and has job benefits, this doesn’t guarantee that they will perform well. What seals the deal is pairing these good practices with regular performance evaluations and effective career planning.
It makes sense when you think about it! If your employees don’t know how they will be appraised, how they will develop their skillset, or where in your firm they will be in 1-5 years, they are far less likely to stick around.
Why you should evaluate your team
Effective performance evaluations should help you improve both hiring AND retention.
These evaluations do indeed help you to check that your team is competent and improve the processes for recruitment, promotions, subordination, and termination. What many firms – even large, prestigious firms – don’t realize, however, is that it is the combination of competence AND motivation that results in consistent, high-quality performance.
To retain staff more effectively, firms should use performance evaluations as a motivational tool. They need to show employees their future with the firm, through self-assessment, career planning, and career counseling.
Combining performance evaluations with career development measures is the key to motivation. Therefore, firms need to implement effective HRM policies for hiring, evaluating and developing their staff if they want to consistently deliver high-quality work.
What makes an effective Performance Evaluation
A good Performance Evaluation will review the competencies and capabilities of each staff member but also how this relates to the bigger picture. For example, where are they on their career path and what do they need to focus on to move forward?
Here is an example of an employee and partner evaluation.
- Technical knowledge
- Business relationships with clients
- Analytical and judgement skills
- Continuing professional development requirements
- Communication skills
- Time & resource management
- Other personal qualities (IT skills, etc.)
- Financial achievements (are they generating enough business?)
- Basic management skills
- Staff briefing abilities
- Communication skills
- Working to deadlines
- Client relationships & CRM
- Time management
- Up-to-date knowledge of financial reporting standards
Two things to note here are:
- You need the right person to conduct the evaluations – preferably the person who was involved in creating the process.
- You need to follow up this evaluation with career planning/counselling – employees need to know where they are heading and when, and how this relates to the firm’s overall goal.
Competence + motivation = high-quality work
Every firm needs Human Resources Management. Not only to get official policies and procedures written down but also to translate them into action!
HRM processes will help your firm to set clear goals, detect and anticipate changes, adapt and respond to current circumstances, and attract and retain qualified personnel.
While good recruitment is crucial for delivering high-quality work, a solid development and support system is also required, to ensure consistent results.
To learn more about this topic or if you are interested in learning more about TGS