Performance management is about getting the best from your people so that your co-op can achieve its short and long-term goals.
The video and information below outline the key aspects of managing performance within your co-operative.
What does managing performance involve?
- Setting smart objectives
- Continually monitoring performance
- Reviewing whether the employee has met their objectives
The objectives that you set your staff should be SMART:
- Specific – what do you want your employee to do?
- Measurable – how are you going to know that an objective has been met?
- Achievable – is the objective attainable?
- Relevant – is the goal relevant to what the business wants to achieve?
- Time – when should the objective be completed?
Not all objectives need to relate to output. They can also be based on behaviours, for example, team work. Your employees should highlight any business knowledge or skills they want to develop within their objectives.
Monthly review meetings
It’s important to monitor performance on an ongoing basis, and identify any support or training needs. A lot of employers catch up with their employees on a monthly basis, but do whatever fits your co-op best.
End of year review
Hold an end of year review to formally assess performance during the year. Before the review, gather information and feedback on whether the objectives have been met. This will help you to talk through the information with the employee.
After the meeting, decide what rating you want to give the employee. If you don’t have a rating scheme in place, you could use the ratings ‘outstanding’, ‘achieved’, ‘developing’ and ‘unsatisfactory’.
When you’ve decided upon an appropriate rating, meet with the employee to ensure they understand the reasons for your decision. Put your rating in writing.
It’s a good idea to include an appeal stage within any performance policy, so that employees disagreeing with their rating can have it reviewed by a more senior manager.
Tackling poor performance early can help your colleague and your co-op. Always reinforce expectations and discuss any training or support needed.
If performance has not improved informally, you should deal with it formally using your disciplinary process. The start point is always to try and give the employee support and training to perform satisfactorily. Unless the employee has been grossly negligent in performing their duties, it will always be appropriate to give them time to improve.