Performance management is exactly as it sounds. These are systems, processes and standards that seek to guarantee the performance of employees. Scorecards, objectives, targets, job standards and performance reviews all culminate to influence performance ratings and remuneration. The shorthand version is a methodology for monitoring and evaluating your work. Unfortunately, some studies suggest that only 39% of employees understand the performance that is expected of them. Additionally, Visier identified that 85% of employees view a good manager as key to their happiness at work and 53% of those looking to change job did so because of their manager. So, is your approach to performance management driving your staff to leave? Read on to find the answer.
Bad managers or bad performance management?
If over half of those looking to leave their current job are doing so because of the manager, the cost is significant. Specifically, the cost of hiring and retraining, the wellbeing of the employee and those in proximity to them plus the loss of expertise and disruption to tasks and projects. Some studies suggest that more than 2 in 5 people leave jobs and cite their (bad) manager as the primary reason for leaving. The organisational waste and the human cost mean that this cannot be ignored. But what if the performance management approach is part of the reason?
First of all, we need to consider what bad performance management looks like:
1) Employees can progress and score high performance ratings at the cost of their colleagues, teams, other departments or even the business as a whole.
The wrong approach to performance management gives single-minded and ruthless employees an opportunity to gain advantage at the expense of others. Why share knowledge, collaborate or support colleagues if it stops me getting ahead or getting as far ahead? Some performance management systems pay little attention to ‘how’ things are achieved. Similarly, some managers enjoy a ‘cut-throat’ culture where individuals or teams compete against and ‘beat’ one another. Ultimately, the organisation loses out in the long-run and the victims of this corrosive atmosphere look for work elsewhere.
2) Managers have too much discretion over objective setting, performance reviews and performance ratings themselves.
Sadly, we are all victims of our own personal biases. Without checks and balances, there is nothing to stop a cynical manager giving a part-time employee stretching goals. Additionally, without professional training, nothing prevents the manager from pressuring the employee during reviews. Some managers receive training on how to give feedback (e.g. the sandwich) but deviate from it when they need to achieve their own agenda. Furthermore, narcissists benefit the most from a ‘me first’ mentality, drawing attention to their own superiority at every opportunity. Many a line manager has fallen for this ‘show and tell’ approach but not before handing out high ratings and putting the narcissist in line for promotion.
3) Leaders, managers and HR departments fail to understand what motivates their employees and what staff expect of the organisation.
Now, we all know that the majority of people work to live and not live to work. This is especially true in the corporate world with the majority of employees not seeing the benefits of those inflated profits. Sadly, performance management is one of the factors that distances employees from the organisation. Yes, many employees view performance management as a game, such as in one study about performance management in universities. Academics pervasively described ‘gaming’ as unavoidable and an inappropriate way to achieve performance goals[i]. Failing to understand that the vast majority of staff work to receive recognition for their efforts (and that recognition has to be fair) may cause them to leave. Additionally, expectations are often completely overlooked during the design of organisations and performance management systems. Perhaps this is another reason for quiet quitting and resignations.
Examples of performance management
Both from an employed and a self-employed perspective, Think Beyond has seen a range of performance management fails. From individuals routinely looking to discredit their colleagues to managers vigorously championing a narcissist, we have seen it all. We were told that seeking recognition or appreciation for work was ‘weak’ and that a recent hire had more potential when awarding an impromptu promotion.
Such examples of behaviour infuriate otherwise loyal and hard-working employees. Bad management is one of the reasons that we created Think Beyond. Many claim to believe in employee experience but fail to measure the impact of their changes. While it would be difficult to rid the world of bad management, we can start to make some headway with bad performance management.
Driving staff over the edge
Poor performance reviews are demotivating. Failure to receive rewards for good performance can be equally demotivating. We also know that a poor performance review is often followed by a strong emotional response, such as anger, sadness and confusion. The performance review is typically based on fairly recent information the line manager has available. Should some evidence of good performance and progress be omitted and a bad review is dished out, the employee may feel like a victim. A subsequent PIP shatters what final faith the employee has left in the manager and the organisation. When performance is based on the opinion of one person and the information they collected, is it any wonder that employees want to leave? Furthermore, changes in line manager often fail to come with a shift in expectations. A previously high performance rating easily becomes a poor one if the new manager fails to communicate what they want or the employee fails to question it.
Getting performance management back on track
Here at Think Beyond, we believe that employees are the foundation of strong businesses. A happy, engaged and well-treated workforce rewards you with high performance. If you are struggling to find ‘good’ staff, bearing in mind that your vision of good is based on your existing team roles and performance management framework, maybe it is time to think differently. Performance management goes beyond a simple discussion to provide feedback. In fact, current thinking suggests that management and leadership roles are changing. That’s right, they are moving towards coaching, collaborative communicators who live the vision. They are also moving away from ‘task masters’ who seek to manage on performance.
If you would like to speak about your organisational structure or performance management, book an appointment now.
Additionally, you can ask us a question by telephone on 01565 632206 or email us at sales@think-beyond.co.uk.
Finally, why not check out other innovative articles on current business topics.
[i] https://journals.sagepub.com/doi/10.1177/00187267211052827