January 10, 2019

One in Ten Employers said their Performance Management Systems were Demotivating for Staff

New research conducted by ACAS has revealed that one in ten employers said that their Performance Management system was demotivating for staff.

It also found that only one in four organisations adapt their performance management processes to consider staff with disabilities and conditions such as dyslexia and austism.

The new research ‘Improvement required?’ focused on how employers use Performance Management systems (PM systems).

ACAS head of diversity Julie Dennis said: “Our study reveals a varying picture when it comes to performance management systems within UK workplaces and a failure by most employers to consider adjusting them for staff with disabilities.

“Performance management shouldn’t be seen as just a tool to identify poor performance or measuring against targets. A good system can help an organisation to motivate their staff, recognise the work of their employees and identify development opportunities.

Consequently, ACAS has published new practical guidance on performance management which includes tips for treating staff fairly.  

What is performance management?

Performance management is the activity and set of processes that aim to maintain and improve employee performance in line with an organisation’s objectives, according to the CIPD.

How can the new ACAS Guide help you?

According to their Guide, good performance management helps employers achieve:

• Their business objectives
• Clear transparent communication with employees, making for a more productive and structured workplace

From an employee perspective, the benefits include:

• A clear understanding of where they fit into the business
• Their role in achieving the business’s objectives through a greater understanding of the skills and competencies needed to fulfill their role

The Guide goes into detail about exactly what performance management is and why it’s important.

In addition, it reminds employers of the importance of managing performance and provides details on implementing performance management measurements.   

Also, it includes an interesting case study on how the company, Sika, designed and implemented a new PM system to best meet the needs of their organisation. 

Why is Performance Management Important?

If performance isn’t managed, then it’s highly unlikely your employees will work to the best of their ability. This could lead to them feeling demotivated which will reduce performance levels further.

However, with good performance management, employees are often more motivated. This is because they feel they are making valuable contributions towards the company’s goals. It also enables management teams to monitor and improve poor performance and acknowledge employees who are doing a good job. Also, it helps develop staff as they will be working towards set goals and targets.

Are you facing challenges with your performance management?

We all agree that performance management is important. Moorepay can help if you’re unsure of how to successfully implement the required systems and processes. If you’re interested in finding out more about how we can help you, please contact us.