Online employee management systems can close performance, productivity and behaviour/attitude gaps, to free up cash through savings made and profits achieved.
With economic growth sluggish and banks reluctant to lend, small businesses have little wiggle room in which to make the financial gains needed to help overcome obstacles like these.
That is where effective employee performance management comes into the frame. It’s not just about annual appraisals, although it can augment or replace these. It also about ensuring that all staff (i) pull in the same direction (ii) are aligned to the business and financial goals (iii) have the right skill sets and competencies for their jobs (iv] are really good at good team working and with customers (iv) are well acquainted with the company values.
The classic reaction in large organisations, when wanting to extract extra value from the business, is to call in external consultants, who use a range of tools to map the organisation culture and then roll out a change programme. That may involve time and motion studies to highlight where individual improvement is required, followed by training.
SMEs, even at the smallest end, have a viable option and one that gives them total control and independence for consultants – at low cost per employee.
Online employee performance management
The option for SMEs is online employee performance management, which not only improves personal and business performance but also shows where training or coaching is needed to close skills and competencies gaps.
No-one should be immune to having their performance measured and appraised. Senior managers and owners may be in charge of using the system, but they too should be active participants.
Being online, the systems do not require software or hardware installation. All that is needed is computer and internet access for all participants, who can participate inside or outside work hours.
The small business
Proportionately, small businesses can have just as much unused capacity or resources as larger ones. Performance improvements of between 10 and 20% can be achieved, with much higher percentages realised in particularly inefficient companies.
The owner may not fully realise just what is available among staff in terms of skills, behaviours and attitudes - and just how willing employees are to help. Add to that the fact that many owners of small businesses often stretch themselves in all directions and work extra hours, and you can see how the problem takes on a more complex look.
Owners may want to change the business and may try, but not reach their goals.
Some small business owners may use basic appraisal techniques on their staff, followed by an informal or formal one-to-one chat with each employee. That approach has its merits but can become too informal and run out of pace.
Online systems can help because they reinforce the message that change is required while giving the owners valuable and easy to use tools to achieve their aims and enable consistency of approach.
Effective systems…
• Encourage the cascading of the business goals, thereby aligning staff to those goals.
• Promote and support the setting of effective and measurable performance objectives that adhere to industry best practices.
• Include both performance and development plans for each individual member of staff. Personal development plans records progress against planned development targets.
• Support the regular monitoring of progress throughout the year, via its in-built initial, mid-term and year-end review meetings.
• Ensure visibility for owners/management through its inbuilt set of reports.
To conclude, the bank manager may not be helpful if you want a loan, overdraft or simply better conditions, but your own staff can be if you want to explore the alternative to the bank. Even if banks start to open up, employees will still be there and most are willing to change if it helps the business they are working for in these difficult times.
©Dinamiks July 2018
