We all know defining a company’s core values is important, but it’s actually only the first step. The greater challenge is how to integrate these into the day-to-day life of your business. Core values provide a motivation to make a difference but also a standard by which employees’ performance is judged. For this reason, leaders must create a values-based performance management process.
Improving Your Performance Management System
If performance management simply means an annual appraisal, you’re doing it wrong. You aren’t going to implement core values through a traditional form filling performance review. Employees hate it and managers do too. But performance management doesn’t need to be this way. Here’s the thing: any process you use to enhance employee performance and company culture is performance management.
Start by redefining your performance management processes as employee-oriented. Think about why you care about performance in the first place. You want to set employees up for success so that they can contribute to making your whole organization a success.
To make this a reality, it’s a manager’s job to provide employees with support and guidance on how they can achieve the expectations set by the company. Managers should communicate how these expectations fit in with your company’s core values.
Best Practices for a Performance Management Program
Initiating a values-based performance management cycle takes work. These steps for an effective performance management process will help:
- Clearly Communication your company’s mission, vision and values to your employees
This is the first step of any performance management organization transformation. These values should be explained by top-level leadership, but it’s managers who’ll be putting in time making sure that each and every employee understands what the mission and values represent.
- Articulate Your Company Values Statement Through Behaviors
Identity 10 to 15 of the most important values-based work behaviors, taking into account the relevant departments and positions in your company. This is a key step, transforming ideas into actions that over time will bring results.
- Understand Different Roles Requires Different Behaviors
For example, if your core value is innovation, employees in the marketing and finance department will relate to this with very different behaviors. Take the time to interview high performers in different roles to better understand what behaviors represent each core value.
- Solicit Feedback
Ask for feedback from top to bottom of your organization. As a business leader, you may have a very different perspective on what would be considered value-based behaviors compared to the employees on the frontlines. Without being open to different perspectives, you’ll never successfully implement an employee-oriented performance culture.
- Make Values a part of Everyday Performance Management
Reinforce core values with your actions. Leading by example will help your employees do the same with their own objectives and decisions throughout their work day. When possible, company-wide communication should reference how core values are influencing business strategy and direction.
- Give Values-Based Feedback & Ratings
Measure and give feedback to employees depending on how their behavior and actions align with core values. As a coach, rather than just a manager, you should care about behavior just as must as results. When behavior aligns with core values, results will follow.
- Publicly Recognize Employees’ Performance
Giving public praise for employees’ performance isn’t a new idea but consider doing so not just based on results, but on how they exemplified core company values and standards.
If you follow all these best practices, you’ll be well on your way to establishing a values-based performance management process.
How Paycor Can Help You Modernize Your Performance Management Plan
Paycor creates HR software for leaders who want to make a difference. Our Human Capital Management (HCM) platform modernizes every aspect of people management, from the way you recruit, onboard and develop people, to the way you pay and retain them.