Canadian Manufacturing

How to improve your employee review systems

A Conference Board of Canada report says less than half the firms surveyed are confident their employee review systems are effective



OTTAWA—Seventy-eight per cent of organizations link base pay to performance, and 56 per cent link their short-term incentive pay plan to performance, according to a recent Conference Board of Canada report.

But the Ottawa-based research firm says are far from convinced that the employee evaluations informing these decisions are effective.

The report, Performance Management: Turning Individual Stress to Organizational Strategy, examines current practices and offers tips to help employers and employees improve their performance management processes.

(The report and an accompanying webinar are available for a fee)

“Performance appraisals can be stressful and few employees cringe more than the manager that needs to deliver the appraisal,” said Nicole Stewart, research associate and author of the report.

“Organizations make substantial investments—in both time and money—in their performance management systems, yet less than half are confident their systems are effective.”

The report offers tips to improve performance management:
•     Keep it simple
•     Communicate clearly
•     Set cascading goals
•     Set the tone at the top
•     Ensure accountability from employees and managers
•     Link pay to performance
•     Provide training
•     Ensure fairness and objectivity

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