Common Performance Management Problems for Employees: How to Fix Them

Author : ameliazoe
Publish Date : 2021-08-05 10:20:52
Common Performance Management Problems for Employees: How to Fix Them

Talent management is often overlooked in the daily chaos and operations of small businesses and startups. They realize that it is impossible to use a spreadsheet or memory to track team member performance as they grow. Your company's performance management strategy must evolve with it. Even if you have only one team member, establishing a performance management strategy early on will help employees perform better and ultimately contribute to the company's success.

This article will discuss the problems startups face in managing team member performance and the solutions that can be found to help them.


1. Unclear objectives & tasks

It is not uncommon for employees to have multiple hats in startups. Multi-tasking employees can lead to confusion and overlap. Team members confusion and lack of clarity about their responsibilities and tasks can also lead to productivity problems. Because startups are constantly changing their goals and strategies, it is even more important to align on them.



It is essential to define objectives clearly. Employees should see them, whether they are in a shared workbook or project management tool. Clear and visible objectives will help employees align and work in the same direction. KPIs and OKRs can be used to establish common goals.

Managers must also communicate with their employees, especially new hires. Not all follow-up emails should be considered a negative thing. Research has shown that deliberately redundant managers made their projects move faster and more smoothly. It is essential to communicate clearly with employees and drive projects.


2. Company values are not communicated or define

Startups are more focused on their product or service than creating values. Startups must realize that the company values are their core beliefs. The company's values are the core beliefs that define the company's culture and help shape the team member strategy, from recruiting to retaining talent.

Startups may not be able to communicate their values to employees, even if they have values. It is a problem for many companies: only 27% of employees believe in their core values, and less than half agree that their organization stands for what it stands for.



Startups and small businesses need to establish their core values early to influence the team's behaviour and make the best business decisions. Startups should establish their core values early on to be communicated to their employees and incorporated into their work. A team member who understands and is fully engaged in their work environment is 51 times more likely than one who doesn't.

Startups can incorporate values into their team member performance management processes by including them in their feedback and recognition practices. It is important to remember that company values are the foundation of workplace culture. Make sure you establish them early and communicate them.


3. Undefined career development and progression strategies

Team member retention is primarily driven by career development and progression. Startups find this a complicated and interesting topic. For employees, one of the most significant benefits of joining a startup is the ability to move quickly and help the company succeed. Career progression is a complex topic to discuss.

Startups are often on a tight budget, so that compensation can be complex.



Define clearly the career development and compensation strategies. Leaders must ensure that employees are aware of these strategies once they have been defined. It is essential to remember that compensation will depend on the team member's previous experience, company stage, and role. Startups can use industry-specific salary ranges on Glassdoor and Angel Co. Startups can use industry salary ranges found on Glassdoor or Angel Co to help them avoid potential problems when they scale.

Although competitive pay is a critical factor in team member retention, other factors such as excellent company culture and bonuses, gifts and paid leave are essential. According to a survey, 63% of employees prefer a promotion without a salary rise than a salary hike with no promotion. Allow employees to have more control over projects and allow them to mentor others. It can be a rewarding experience for many employees.


4. Inadequacy of feedback systems

Feedback is vital to improving team member performance, regardless of whether it's a startup company or an established business. Because employees often have many tasks, team members must give feedback. Startups may lack a strong feedback culture, making managers reluctant to give constructive feedback to employees and leave them afraid to get feedback.



It is essential to establish a healthy feedback culture early in life. Managers must lead by example. They need to be open to receiving feedback from their direct reports, and they should also give feedback often. 43% of high-performing employees need weekly feedback. Employees can use feedback to motivate themselves. Managers in startups need to realize that feedback is not a one-way street. Bad feedback can lead to worse outcomes than none at all.

Effective feedback is essential to correct behaviour. It is essential to receive education and training about giving feedback effectively and what it looks like. Feedback should also be recorded in one place. Documenting feedback is essential for employees and managers to be able to see past feedback and track progress.


Early on, establish team member performance management processes

It can be challenging for early-stage businesses to hire the right people and manage them. Startups can improve their ability to manage employees and achieve success by clearly communicating their goals, including incorporating company values into performance management processes.

Disclaimer. The opinions and views expressed in this article are the authors Andrew Napolitano.

Category : business

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