A reader comment on my recent blog highlighting the importance of employee performance measurement got me thinking about how we frame the idea of employee performance management. One reader writes:
I think if the work is getting done satisfactorily that an employee is performing well.
I can't get over one word in the sentence above: satisfactory - what an un-inspiring word! As I see it, when it comes to employee performance, this is a word that equates to good enough and encourages the minimum effort required to get by. I don't mean to imply that workers don't want to do their best, but when the lines between performing at a satisfactory level and performing well become blurred, it is easy for one to continue doing what they have always done with little or no apparent need for improvement.
I implore you to stop measuring employee performance in terms of "satisfactory". It is killing Possibility in your organization!
Consider this... What if we were only graded in terms of satisfactory or unsatisfactory in school? Where is the motivation to be great? Seems almost crazy doesn't is!
Why should the workplace be any different? This is essentially what you are doing when you measure performance in terms of "satisfactory".
Satisfactory performance should only be acceptable temporarily as an indication of future potential while an employee progresses towards truly exceptional performance. You must be crystal clear about what level of performance is possible in a given position and communicate what performance metrics must be reached, and by when, for the employee to become a star.
A good example is an outside sales position. Many organizations expect a certain level of sales performance by given period in time and will terminate those sales reps who cannot meet this level of expected performance.
A great start, for certain, but also the point where most organizations go wrong. They assume that if a rep is reaching their goals that they are performing well and everyone is happy. The problem is that most companies don't fully understand the performance potential the position really has and accept "satisfactory" performance for much longer than they really should.
Think about what it costs your organization in terms of lost opportunity when you retain a "satisfactory" employee instead of insisting on finding and retaining an exceptional one. The difference between the top 20% of your workforce (the exceptional performers) and the bottom 20% (those that are retained as satisfactory performers in most organizations) is astonishing and cannot be overstated.
For an example, let us go back to the sales rep position... An organization might find that $100,000 per month in revenue by the sixth month of employment is satisfactory and use this as the standard of performance to retain one's job. But, what if you knew that a top performing "Rainmaker" sales rep who is a good fit for the position can consistently deliver $200,000 a month in sales, and made it clear that this level of performance will eventually be expected for one to keep their job over the long term?
What if, instead of calling $100,000 good enough after six months, that you sought to build toward optimal levels of performance and expected $150,000 after 12 months and $200,000 after 24 months. How would this change the level of performance within your organization?
Quite dramatically actually. Over a five year period a "satisfactory" employee performing "well" would bring in around $6 million in revenue. However, if you identified and insisted upon exceptional performance, that same position would generate over $10 million - an increase of 67%!
Why would you accept anything less than a level of performance that you know is possible for a given position? I don't want my employees (or yours) to be just satisfactory. I want them to be exceptional. I want them to be Stars. I want them to be Rainmakers!
What you can do:
1. Benchmark the position to determine what level of performance is actually possible. Don't assume that your current top performers in that position are producing at the full potential of the job!
2. Set a progressive time-line of performance expectations and stress that satisfactory levels of performance are only acceptable for near term job security and are meant to serve as stepping stones towards truly exceptional performance.
3. Create an employee performance scorecard to provide an effective feedback loop.
4. Let your employees know that they were hired for their potential to perform at exceptional levels in their position and provide them with the necessary development opportunities to reach this level of performance. If they are unable to reach the desired level of performance by a predetermined point in time, replace them with someone who can.
Satisfactory is not a viable long term strategy. I promise you that your competition isn't aiming to be satisfactory, and neither should you!
Now go Maximize Possibility!
Other blog posts you may be interested in:
- Employee Performance - Don't Forget to Measure, Measure, Measure!
- Employee Performance Expectations and the Pygmalion Effect
- Five Steps to Creating an Employee Performance Scorecard
- 10 Potential Barriers That Limit High Potentials (HiPos)
Chris Young helps organizations Maximize Possibility through talent management, cultural transformation, and strategic intervention. Bring Chris in today!
