Rating the employee fairly and
Measurement of staff develops a willingness to accept feedback and use it constructively
Al t h o u g h measuring e mp l o y e e s ’ p e r f o r - mances is seen as a soft skill, there are tools available to human resources practitioners that can remove as much of the subjectivity of the process as possible. Linda Fine, human resources executive for Dimension Data Middle East and Africa, explains the skill of measuring employees’ performance requires a manager to have competencies in a variety of skills, including goal setting, communication, feedback and coaching, among other things.
Dimension Data measures all staff based on a combination of variables, and takes into account aspects such as business performance and individual performance. This would include aspects such as financial performance as well as deliverables and behaviour, says Fine. She notes each role is measured against certain criteria for that position and “performance promises” are set at the beginning of each year.
Fine explains these promises detail how leaders will meet individual goals, and these targets are then cascaded down through the teams with two-way dialogue between staff and managers being used to ensure there is agreement on the goals. Individual goals relate to day-to-day role expectations, key performance indicators (KPIs), behaviours relating to our values, personal career development and the ongoing learning required to reach these goals, she notes.
Regular progress reviews are encouraged throughout the year so there is on-going alignment to the goals that have been set and to avoid surprise discussions when DiData’s formal annual review takes place, notes Fine. The annual review is a must-do for all staff if they want to be eligible for bonuses, and is done against a rating scale, she adds.
Company leaders are also reviewed through a 360-degree feedback assessment, which focuses purely on the company values, as they are expected to set the tone and lead by example in terms of how they behave. “Measurement is a soft skill in that it develops a willingness to accept feedback in a positive way and use it constructively to enhance effectiveness.”
Setting targets
Although employee measurement — which is seen as vital to human resource practitioners — is a soft skill, there are aspects that are easier to measure and are less subjective, says Fine. She explains financial performance is more measurable than the subjectivity of individual performance and meeting goals. “The trick is to try find the right metric(s) that the employee can have an impact on.”
For example, says Fine, a factory worker could be measured against his or her output, but this is not true of all roles. When it comes to measuring performance, management style also comes into play, as managers are required to provide coaching, robust feedback discussions and career and skill discussions.
Aspects such as leadership, business writing, and measurement may have an element of subjectivity to them, says Fine. Management is subjective in nature, so honing soft skills is vital to bring more science, objectivity and fairness into play.
Natasha Galli, talent acquisition specialist at Hilti South Africa, says measurements that can more easily be measured without subjectivity also include aspects such as direct sales target achievement, days outstanding on payments and other key direct financial levers that impact targets.
Galli explains the company uses a performance management process (PMP) to measure employees, as it is a performance-oriented organisation. She explains that PMP, which differs from the KPI system, is a pillar of the human resources process and is an integral part of its developing