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Published 28 March 2023 | 2 min read
The desire for regular feedback is overtaking the once or twice-a-year performance review.
Employee performance is essential to the success of any business. However, managing employee performance can be a challenging task, especially for small-to-medium businesses in New Zealand. In this article, we cover ELMO's leading HR Industry Benchmark Report 2023 and offer useful tips to help businesses improve employee performance, including setting clear expectations and goals, providing regular feedback and coaching, and offering opportunities for growth and development.
1) Lack of structure is hampering performance management
According to the HR Industry Benchmark Report 2023, lack of personal development plans is the top challenge within performance management. This lack of structure is hampering employee performance, as employees need clear direction and a pathway for progression. Without a roadmap, they won't know where they're headed, and their performance may suffer as a result.
To address this challenge, businesses need to create clear, measurable goals for each employee and establish a system for tracking progress. This will help employees stay focused and motivated, and managers can monitor performance and provide feedback to help employees improve.
2) Annual performance reviews are out, regular feedback is in
The trend towards more frequent feedback has been growing over the past few years, and the HR Industry Benchmark Report 2023 confirms that regular feedback is now overtaking the traditional annual performance review. This trend is positive, as it allows for a more proactive, transparent approach to performance management.
Businesses should consider implementing quarterly or monthly performance reviews to provide employees with regular feedback on their progress. These reviews can be formal events or simply an opportunity for managers and employees to check-in on progress and discuss any challenges or opportunities for growth.
3) Performance reviews are most time-consuming for managers
Regular performance reviews are essential, but they can quickly become time-consuming for employees, managers, and HR members. The HR Industry Benchmark Report 2023 found that managers spend an average of 19 hours conducting performance appraisals each year. However, with the right tools in place, performance reviews can be streamlined and made more efficient.
Businesses should consider implementing a performance management tool to automate and streamline the process. This can save time and improve the quality of feedback, ensuring that managers have more time to focus on coaching and developing their employees.
One way to address the time-consuming nature of performance reviews is by conducting quarterly performance reviews with EQ Consultants. At EQ, we believe that every Kiwi businesses can achieve their performance goals, while also promoting a positive and healthy work environment for their employees. EQ consultants are experts in emotional intelligence and can help managers provide effective feedback and coaching to their employees, while also promoting a positive and healthy work environment.
4) Performance processes have improved
The HR Industry Benchmark Report 2023 found that 58% of respondents in New Zealand rated their performance management processes as 'good,' up from 20% the previous year. This is a positive trend, as effective performance management is essential for improving productivity and retention.
To maintain this positive trend, businesses need to continue to invest in improving their performance management processes. This can include providing regular training for managers, implementing performance management tools, and gathering feedback from employees to identify areas for improvement.
In conclusion, improving employee performance is essential for the success of any business, and small-to-medium businesses in New Zealand face unique challenges in this area. However, by setting clear expectations and goals, providing regular feedback and coaching, and offering opportunities for growth and development, businesses can maximize employee performance and achieve their goals.