Does this sound familiar? “I can’t possibly complete all of this work and meet the goals to receive a raise. It just doesn’t seem fair. I don’t think management understands what it takes to actually do this job”. Employees today are experiencing more stress than ever in this era of economic uncertainty. It’s very important to align workload and performance goals for long term positive employee morale, long term profitability and long term productivity. Your customers (both external and internal) are impacted by your performance goals. Here are a few issues to consider.
Performance Goals – Is That The Right Number?
When establishing performance goals, take into consideration the total process required for task completion. Base goals on outcomes over which the employee has control. Where the employee has accountability for additional tasks, factor this into goal setting for the employee’s primary responsibility. This will lead to setting realistic goals. Spend time with the employees as they actually perform their duties to get a “real world” feel for what it takes to perform the job. Include the employees who actually perform the job in establishing goals. An environment of mutual respect will exist as the employees will feel that they were able to participate in creating their own goals. The level of service provided to the customer is higher when employees are not overly concerned and stressed out daily about meeting performance goals. Taking these steps has a three-fold effect: 1. Improvement in employee morale. 2. You may be able to create a better process. 3. You should be able to determine if the stated goal is the right goal.
Quality Vs Quantity – Which Is Primary?
Does your reward system encourage quality work? A reward system based on unrealistic performance goals tends to promote quantity over quality. As employees struggle to meet the stated goals, quality will surely suffer as short cuts become the norm in completing tasks. This can lead to poor work audit results, rework (how much does this cost at your company?) and customer dissatisfaction. Employees are prone to display a sense of hurriedness when interacting with customers if the workload and performance goals are not balanced. Those employees choosing quality over quantity will become frustrated as their efforts to perform the job properly are rewarded with inquiries regarding their inability to reach the stated goal. In the quantity over quality environment created by unrealistic performance goals, long term productivity is sacrificed for the short term goal. Focus on systemic thinking and make this a high priority when designing reward systems. Reward actions that insure fluid cross-functional handoffs. This helps to build a culture of wholistic, systemic minded employees who understand the impact of their work to the product/service system.
Work Environment – Is This A Healthy Place To Work?
It is very important to create a positive work environment as your bottom line is directly impacted by employee morale. An environment where performance goals are fair and obtainable fosters an atmosphere of teamwork as employees do not feel the need to protect their “numbers”. Unrealistic goals lead to either unwillingness – for fear of not meeting their own goals or inability – due to unrealistic work load – to truly work as a team. Long term employee frustration usually results in a lower quality of work which ultimately impacts the external customer. Stress levels increase possibly leading to health issues. Employee turnover increases as well as some will seek relief from an atmosphere they deem unfair and unhealthy. This directly impacts your bottom line as the level of customer service delivered suffers via productivity lost to the need to hire and train new employees. How much does a dissatisfied customer cost your company? Promote employee quality of life versus “my work is my life” mindset. Give employees a reason to feel good about coming to work.
Performance goals and reward systems are key components of the business environment. Strive to base both on a “real world” workload. Your long term success depends on it. Your customer will feel the impact of performance goals and the workload. Balance these two in order to insure that the customer is positively impacted and gets great customer service.