A company with mediocre employees will get mediocre results.
The cost of labor and payroll in general, with its social charges and other inherent employer obligations, is one of the most important costs for all. In some companies, especially service companies, this cost is fixed and can represent up to 60% of total sales. For some commercial companies, this cost is also fixed and can represent 15% or 20% of total net sales.
We agree on the role that staff play in the success of a business.
I would like to give you three practical steps to start implementing a program for monitoring, measuring and evaluating the performance of workers in your company.
I am sure that if you implement these simple and practical tips, your people will feel really motivated to improve within the company
WE WILL USE THE PIM = Prepare + Implement + Measure
STEP 1: PREPARE THE LAND
1. Define the General Objective that you hope to achieve.
2. Clearly establish the goals, objectives, results and criteria for improvement that you want to achieve.
3. Establish procedures for conducting performance evaluations.
4. Clearly define responsibilities for each of the activities
STEP 2: IMPLEMENT AND MAKE EVALUATION PART OF THE COMPANY'S LIFE
1. Communicate to all staff the objectives, scope and benefits for the company and for them to perform performance evaluations.
2. Appoint and present the persons responsible for carrying out the evaluations. It may be advisable for a committee or team to have the presence of leading department workers. If it is a small company with less than 25 workers, this recommendation also applies. Have no fear.
3. Establish and communicate easily; but clearly, what will be the various evaluation criteria and the weight of each one within the rating.
4. Establish the tools and mechanisms necessary to obtain the information required to measure the performance of each department, each position and each worker.
5. Prepare and do not stop improving the interview that will serve as a guide to recognize the achievement and progress of each employee.
STEP 3: MEASURE THE RESULTS AND ESTABLISH THE CONSEQUENCES
1. Be sure to periodically obtain a report from the managers, about the evaluations carried out, the results obtained and the qualifications assigned to each worker and each department. The average rating of workers is the rating of their department.
2. Review and apply the sanction, promotion or incentive procedures that have been established for the results.
3. Communicate the results and motivate improvement, enthusiastically presenting the most successful cases, as well as the incentives or awards obtained by them for their superior performance.
4. Verify that there is a permanent support system that encourages continuous improvement, management and superior development of the performance of each worker.
5. Measure the impact that performance evaluation programs are having on cooler performance indicators such as sales, profit margins per product, fixed costs and expenses, profits and company profits.
It is proven and you will see that you will get multiple benefits from implementing performance evaluation programs in your company and more if these programs become part of your life.
Here are some benefits:
• It improves the work environment and the mood of the workers.
• Send a clear and direct message that the company is attentive and wants to have only personnel that have high levels of performance and efficiency.
• Reduce staff turnover.
• Reduces the cost of the process of recruiting, selecting and training new employees.
• It stimulates the growth and development of the person within the company, promotes him to make a career, to grow within the organization.
• A team spirit and sense of achievement are created when evaluations are individual and group.
• All financial indicators improve: sales, profit margins, lower fixed costs, increase profits.
Evaluations must become useful tools and allies in the growth of the company.
Workers are individuals, people, they have families, a history, they want to improve their own situation.
If the entrepreneur, business owner and manager manages to match the needs and desires of each employee within the company, they will see their profits and profits grow, since human resources are the main asset that every company has.
Companies with mediocre profits can improve their situation in the very short term just by establishing within their company, systems for evaluating worker performance, associated with incentive programs and a promotion strategy. Thus the evaluation is like the turbo that increases the performance of an engine, in this case of a company.
For a business to be successful it must provoke illusion and desire. Having a team of proud and motivated people is part of that stimulus that causes the energy to build, create and produce.
