Almost everyone hates annual performance reviews – the managers doing the reviews and the employees who are the subject of the review.
Why? Most reviews are a surprise because there has not been communication throughout the year about great performance, adequate performance, or even a poor performance situation.
If you manage by key performance indicators, KPI’s, your employees get a score card every day, every week, or every month depending on the procedure/process being tracked.
In these cases, annual reviews may not be necessary because the review is being done on a regular basis. Or, if they are done, they are NOT a surprise because the employee knows how he/she is doing on a regular basis.
Before you implement KPI’s please:
1. Make sure everyone has a job description and knows the minimum performance required (minimum KPI).
2. You know where the results are now. If they are below the standard you’d like, what will be done so that the employee meets that minimum standard.
3. You know how frequently the KPI will be tracked and what the communication method of performance will be. It might be a daily email and a weekly short meeting.
4. The employee knows what happens when the minimum KPI is not met.
5. The employee knows what the bonus is for exceeding the KPI level in what period of time. The bonus could be monetary, time off, a gift, etc.
For the next five weeks, I will give you suggested field, office, and owner KPI’s. Feel free to change them or add others that suit your company better.
Did you check your bank accounts online today? This is the first step in protecting your hard-earned cash.
Get the tools you need to grow profitably, build wealth, and live the life of your dreams.
Ruth King is well known as “The Profitability Master.” She is passionate about helping small business owners become profitable and stay profitable. For over 40 years she has coached, trained, and helped contractors and others achieve the business growth and goals they wanted to achieve.
Contact Ruth by emailing ruthking@hvacchannel.tv.
Visit www.financiallyfit.business to get your business financially fit in less than 10 minutes a month!
