Risk of Poor Performance Management

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There is a cost related to poor performance management and employee reviews that is not always considered by management and the HR team. By not managing performance, you are setting the company up for poor productivity standards.

For example, managers typically only review employees once a year and if they are not relaying vital improvement steps to their employees throughout the year, inefficiencies can occur. By only addressing problems annually, this means that you are allowing an issue to continue for up to a year before it is addressed and corrected.

Another cost is that employees tend to become upset and angry as well as demotivated if they are not given regular updates on their performance. They may also begin to believe that management does not care about their performance and begin to perform at even lower levels than before. Sometimes they may even begin to blame managers or other co-workers for their poor performance.

Another issue that is produced by not managing performance properly is the fact that this often places employees and managers on opposite sides of a topic. This may limit the amount of communication that occurs throughout the year between managers and employees.

Businesses that put an emphasis on employee performance and perhaps even reward those with excellent performance may be able to eliminate many of the issues that are often seen when performance issues are ignored. It is extremely important for businesses to have a performance system that works alongside their goals and ambitions as a company.

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