Let’s talk about the importance of regular performance reviews. A monthly performance monitoring system is a routine and the systematic collection of data based on the work done by employees. Before you come up with your own system, it’s important to understand the terms associated with a performance monitoring system and its implications on your team’s actual performance. We can start by looking at some advantages of regular time-based performance monitoring systems using a calendar month:
- Increased job satisfaction
A recent study shows that 65% of employees desire more feedback from management; however, many organizations have been slow to respond. This is unfortunate because employees are always happier and more productive when they can get regular feedback on the work that they do. Employees who receive feedback gain a deeper understanding of their job function and role in the company. It makes them feel valuable and they become more driven and engaged and are more likely to succeed.
- Organizations can cut staff turnover
Studies further show organizations that have been conducting regular performance monitoring have experienced a significant improvement in employee retention, saving organizations a significant amount of money and time that high-turnover companies spend on hiring and training new employees. For example, when Adobe improved their performance monitoring system, the company was rewarded and experienced a 30% reduction in its turnover rate.
- Improved communication
Many employees struggle in their roles, with many of them not actually knowing or fully understanding what they’re supposed to do and what is expected of them. With regular performance monitoring, the manager and the employee can communicate more freely and regularly about the goals that need to be accomplished and the means of achieving them. The employee can also have their doubts clarified and be aware of their contributions and how they fit into the long-term vision for the company.
- Career growth
During the monthly performance review, the employee and his manager can discuss the employee’s achievements, concerns, goals, and development opportunities. These can influence the career growth of the employee, especially since training and development are vital areas of performance monitoring. You can use these performance reviews to update employees on their progress as a professional, and the employee can get a better sense of their potential for growth within the company.
Frequent performance discussions, as opposed to annual reviews, are even more time-efficient. Annual reviews attempt to accomplish so much in one meeting, it becomes counterproductive. First, managers have to cram a year’s worth of information into an hour-long meeting. Then the employee can try to adjust but won’t receive any feedback for a whole year. Regular performance reviews, such as a monthly one, can keep employees up to date on their progress and can be shorter and tailored to specific topics.
In producing a monthly performance monitoring system, you should be using the guidelines below while also incorporating some of your own.
- Develop a monitoring and evaluation form
The whole process of performance monitoring and evaluation must be documented in writing to ensure that it is conducted fairly, objectively and consistently. A standard evaluation form for every monitoring and evaluation cycle should be used by the manager and employee.
- Identify performance measures
Performance standards must be set in place as these allow the manager to evaluate the job of the employee against a certain set of criteria. If you have job descriptions ready, these can also be used in developing benchmarks.
- Set guidelines for feedback
Giving feedback and improving performance is the ultimate outcome of performance monitoring and review. Thus, managers must know what feedback to give and how to give it. The feedback must be balanced, which means the feedback must consist both of the employee’s strengths and weaknesses.
- Create corrective, disciplinary, and termination procedures
Some employees might continue to perform poorly despite several performance monitoring reviews and attempts at correction. When that happens, you should be prepared to handle this by having a clear written procedure on the proper chain of disciplinary actions.