What are the true costs of appraisals? Are the most important phrases in team performance "Where are we going?" and "How am I doing?"
In this current climate staff management can be literally a make or break issue for a company and design and advertising is no exception.
It's not an industry renowned for its structured management but why is that? Is it because designers and creatives don't need development or is it that we just aren't sure of the processes or don't believe in them?
I recently spoke to a client who was having an issue with a team member, in these times he was looking for an extra 10% but was actually getting considerably less.
I asked when they had discussed this with the employee and they hadn't, ever. There was no appraisal system, no 1-2-1, no reviews. This may sound like a saving on time but is it really?
If your team has no fixed idea of what you are expecting of them, how can they perform? If they can not beat your expectation, how can you praise them or indeed how can you manage their improvement? Well managed teams are far more successful and happy at work than those with no management at all. They have better staff retention and on comparison actually cost less.
When looking at morale pay is actually one of the worst motivators. We all remember getting a pay rise, but the next day that rise is not a rise, its the new normality. The real motivator is success, but success needs goals and needs to be monitored.
The best motivator is actually recognition. "Well done" or "brilliant" are two incredibly powerful words in business and are extremely under utilised.
So what's the cost of all this staff motivation? In the most part its time, a valuable resource itself and something to be rationed carefully.
Appraisals are best done at least every 6 months, and should offer both employer and employee to discuss performance, development, challenges and recognition in a structured format. Reviews should be at least Annually and remember these do not automatically mean a pay rise, merely an opportunity for a discussion.
A good appraisal and review system forces us to be better managers. Its not easy and will involve commitment and effort but its rewards are great and can really help an organisation to improve productivity when watching the bottom line is so important or even when business improves and resource is short.
If you would like help or would like to discuss how a structured staff appraisal system could help you then please contact me for more information on mike@orchard.co.uk