It’s important to link performance review outputs and training.
As we approach the end of financial year pay review most employees are expecting some sort of pay rise.
As HR professionals we tend to start thinking about the Performance Review Process.
Performance Reviews should be part of a talent management process that are used as part of your people management strategy.
I hear you thinking ‘huh?’ and your eyes glaze over.
‘What do you mean?’
What I mean is simply this:
Getting the right person, keeping them in your business and then developing and rewarding them.
If you put on your strategic HR hat that means that you use the performance management and review process as part of an input to the end of year salary review.
To put it simply, if you don’t have data on your employees’ achievements how do you correctly quantify how much (if any) increase in salary they should qualify for?
A performance review is much more than a review tool for the purposes of salary review, it can be a strategic tool to develop your workforce too.
Typically, performance reviews will look at the person’s role and what they’ve achieved.
A good performance review should also consider whether the person is a high potential employee and what their development opportunities are.
What training would be required to get them to this next goal and what support and coaching from their manager (or another in the business) is needed to assist their growth?
Have you ever had an employee resign and then have the manager say
‘Oh, I wish they’d spoken to me, we had them lined up for another position’ or, ‘I can’t believe they’re leaving, I don’t know what to do without them’.
Well at this point it’s too late. You have to learn to identify and nurture your best performers before they resign! This is part of the performance management process and it includes identifying your top performers and providing them with opportunities to further develop and grow within your business to extend the life of their employment with your organisation.
Linking training and development plans to performance review outcomes will further strengthen your HR function.
Here’s a graphical look at the different inputs your performance management system can interlink with other functions:
So, before you get started with your end of year performance management process or salary reviews take a few moments to think about the potential impact you can have on your business by carefully planning out and mapping this process!