A common conversation I have with my clients is about how they communicate job and performance expectations to their employees.
During the recent recession, I learned that many employers put a hold on conducting employee performance evaluations due to the financial stability of their business and the economy. Evaluations weren’t performed because companies couldn’t afford to give raises. However, a recession is one of those critical times where communicating with employees is crucial to maintaining employee morale and retention.
It’s imperative for employees to know they are still bringing value to the organization.
The thought of telling an employee who is meeting or exceeding the expectations of their position, “Outstanding job, unfortunately we won’t be able to give you an increase in your pay this year,” has halted many businesses from conducting annual performance evaluations.
That’s when I open the discussion about realigning the performance appraisal process to remove the money discussion.
Being in HR for as long as I have, I understand that avoidance is often easy. As an HR professional, I believe that communication is a valuable tool in good times and in bad. Consistent communication with employees about what is expected of them and how they are meeting or not meeting those expectations does not necessarily need to be tied with a salary increase.
There are valuable benefits to a business and its culture by separating performance reviews from salary increases:
- Employees no longer assume that there is a guaranteed increase for performing their jobs
- Communication continues regardless of the financial stability of the organization
- Increases are based on the employees’ performance and the financial growth of the business
As the economy has improved for many business owners, I see their efforts to make their employees’ pay reflect their support and loyalty through the tough times, however, the communication about expectations and performance has not been revived.
HR Synergy can help you to develop employee performance communication tools that don’t have to stop just because there is no budget. Call today (603) 261-2402 or e-mail [email protected]!