The challenges of the current economic environment have changed the game for managing performance and delivering results. Limited budgets and cost cutting have made firms focus restricted financial resources to key talent, and incorporate non-financial rewards in management practises. Firms now have to adapt to the new post-crisis environment to ensure that their performance management process is effective.
We typically follow a three-step process when helping clients to improve their performance management process:
- Review the current practice. Key questions to address include: "What are you trying to achieve? What are your key priorities? Which aspects of the process are working and which aren't, and why?
- Build a straightforward and meaningful process that delivers on 'the basics'. Together with the client we set clear goals that are built around the various stakeholders' interests. It is important to be realistic and cut back on complexity. Cascade a clear direction from the top, but focus on the quality of conversations and the overall employee experience through the annual cycle. It is critical to make the process as user-friendly as possible.
- Build the capabilities to enable conversation. Upskill, involve and engage line managers and employees with the process. Focus on the positive and employ a strengths-based approach to performance development. Ensure line managers receive appropriate guidance from HR, and that information systems are used to support, not drive the process. Monitor and take action to improve coverage and quality.
Aon Consulting Limited is authorised and regulated by the Financial Conduct Authority.