So why do Most Employees feel like they are under paid?
First let’s identify the reasons and later discuss the best remedy:
- Lack of Communication between Managers and Employees is a primary reason for this. Whether informal or in a Performance Review format, employees need to know where they stand. You owe it to the employee and the company to communicate this effectively.
- Employee Performance Management is not consistent. Managers are not setting and measuring goals. Employee Reviews are not performed on a consistent basis.
- Employees are out of touch when it comes to understanding their market rate for their job title based on level of experience and their region. Sometimes it helps to share information with them from 3rd party market researchers so employees can understand the justification for their salary. There are many resources available such as salaryexpert.com that will supply this information at no charge.
- With a recession lasting more than 3 years, there are many cases where employees are right (they are under paid). They are not being paid appropriately and many have had raises frozen for many years. Let these employees know how much you appreciate them and assure them that when things are better, they will be compensated fairly. In the meantime, perhaps you can give them an occasional gift card and a pat on the back. This will go a long way in helping keep your good employees.
How do we resolve the issue? Good communication is the most significant factor that helps employees understand their true value. Timely and accurate Employee Performance Reviews and Goal setting will keep the employees grounded while eliminating insecurities that can arise when communication doesn’t exist. Have good documentation available and be willing to share this with Employees. Being prepared is the key. Be honest and re-assuring about how the recession impacts your organization while letting them know how much they are appreciated.
How to get started? A good step in the right direction is to start using a Performance Management software solution that will give you the tools needed to do timely Performance Reviews, Set / Measure Goals, and properly document employee behavior. By getting a good software solution and implementing it, soon you will start having productive conversations with your employees. Everybody will be happier – the employees, managers, and the organization as a whole. So, what are you waiting for?
For years as a manager I always resisted sitting down with an employee to do a performance review for one or more of these three reasons:
- I was so focused on doing what I thought was my job, producing revenues and improving profits, that I didn’t want to allocate “valuable” time writing and conducting employee reviews. This also meant that I would have also been spending “valuable” time documenting employee performance and activities on a timely basis.
- I wanted to avoid confrontation. If the employee was a marginal performer I didn’t want to have to justify why they would be getting little or no increase in pay. Because I hadn’t taken “valuable” time to collect consistent documentation I wasn’t prepared to provide specific examples of poor performance or attendance.
- I wasn’t able to budget money for raises and dreaded having to tell employees that even though they were performing well they would not get a raise.
I was so worried about revenues and profits that I didn’t realize when I thought I was wasting
“valuable” time conducting employee reviews I lost track that revenues and profits would improve with better employee performance.
If I had a quick and easy way to collect and maintain accurate information about employees I wouldn’t have perceived that I was using “valuable” time preparing and conducting reviews. I would be better prepared to discuss their performance.
Then a friend introduced me to an employee management software application from ManagerAssistant.com that made it easy to document employee performance, and put it all in a format that could be use to easily discuss with the employee.
I found it easy and it took such a short amount of time to document employee performance reviews. I started looking forward to sitting down with employees and discussing their performance reviews and ways they could improve. I learned how to properly set priorities so “valuable” time actually was allocated to improving employee performance. Soon revenues and profits began to increase.
The results of learning how to manage the employee review process eliminated the first two reasons I resisted sitting down with employees. With better employee performance and profits increasing, reason number 3 disappeared because soon more money was budgeted for raises.
Here is an article that may help understanding getting over the fear of employee reviews.
There are many reasons why Managers put off doing Performance Reviews. Fear of confrontation, procrastination, under estimating the time and planning involved, or just plain old forgetfulness.
As a software vendor for nearly 8 years, you might be surprised to find out when our busiest month occurs (referring to volume of sales / support). You are probably thinking December since people put off everything to the last minute. Actually, January is the busiest month by far followed by February. That means that most people are waiting till after their Reviews are due to start their processes. In many cases this is when they start shopping for a Performance Management product.
Important! – What you can expect with rushed Reviews:
- Sloppy inaccurate Reviews
- Reviews that are late
- Cookie Cutter (boiler plate) Reviews that are impersonal / cold and don’t offer thoughtful construction comments
- Choosing a throw away solution. Now you get to start the process again next year.
The resolution is to start several months before
Reviews are due. Give your team enough time to properly document employee performance. Make sure the software solution
you are using is right for your organization
. You will notice a huge increase in morale and the quality of Reviews will improve 100%.
In Conclusion, start your planning / shopping early. Find a performance management software solution
that meets your long and short term expectations. When is the right time to start planning for Performance Reviews? NOW!!!
Ruduce your insanity and manage your employees more effectively by having one program to Manage Employees. It’s not uncommon for an organization to have one program for doing Performance Reviews, another for tracking Employee Attendance, one for tracking Employee Benefits, training, Recruitment, incidents, and so on. Not only is this a disorganized and inefficient approach, it can also be very costly. Here are the benefits of having fully integrated employee management software:
- Enter Employee data once – Reduce Redundacy & Save Time
- $$$ Savings – your costs will be reduced by 75% or more
- One vendor – use one vendor for all your support and training
- Integrated Data – data resides in one place which makes it easier to manage and maintain proper backups
There are very few products out there that combine employee tracking
into one integrated solution. ManagerAssistant.com has 2 products. A web based product called HRweb
and a Windows
based product called ManagerAssistant 3.0
. These products provide modules for tracking all Employee data such as compensation, benefits, Performance Reviews
, Incidents, Accomplishments, Goals, Recruitment, and much more. Whether you try one of our products or another, we encourage you to look for an integrated approach
to managing your employees.
You ever have one of those days when you come to work and you realize half your staff is missing? You realize your morning meeting starts in 10 minutes as you scramble to determine why half your staff is MIA (Missing in Action). About that time, you get a call from Joe, one of your chronically late / tardy employees, to tell you that he is stuck in traffic and will be there in 30 minutes. By the end of the day you have it figured out. Two employees were late, two had vacation scheduled on the same day, and another just didn’t bother to show up at all. This is a typical day in the life of many managers that are experiencing the Nightmare of Tracking Employee Attendance.
As organizations grow and responsibilities expand, it is normal to experience these pains. The solution is very simple – find a software product that will help you organize all this data in one place. It should provide a way for absences to become more visible, managers to be more organized, and employees to be held accountable for their actions. With the right workforce management solution, you should be able to see who is there (or not) – at a glance. Determine who has excessive tardiness and provide timely / accurate documentation. Set reminders so you can anticipate when your staff will be away. No more double booking of vacations. Finally, powerful reporting at your finger tips to let you know when, why, and how much.
ManagerAssistant.com, a company with thousands of customers worldwide is the leader at empowering managers to gain better control over their employees. Our products HRweb and ManagerAssistant 3.0 solve the problem. Best of all they are easy to use and affordable.
Excuses why employees miss work:
Performance mangement software for small business needs to track employee attendance for employee evaluations.
We have all heard the “death in the family” and “doctor’s appointment” reasons for not going to work, but have you heard “my clothes were still in the dryer” or “the power was out and the electric garage door wouldn’t open”? (They put a pull chain on the garage door for such outages). Often the next morning after a Sunday or Monday night football game I would get the call “I must have eaten bad fish and have food poisoning”. Never “I drank too much and am hung over this morning”. Managers see through the lies and it is important to document all attendance excuses to keep an accurate record for evaluating employees’ total performance.
When it is the time to sit down with your employee and conduct a performance review appraising his/her achievements you also need to take into other considerations. Considerations such as attitude, work ethic, and of course attendance. Can you depend on them to be there when you need the job done on time or do you just “hope” they will show up for work?
Tracking employee attendance is very important. You can spot potential problems ahead of time.
It is estimated that employee absences cost employers 40 billion dollars each year. http://www.benefits.org/interface/cost/absent.htm The importance of regular employee attendance cannot be overstated. Not only does it affect productivity, it can cost the company profits or even additional contracts. One of the most difficult areas of employee management is often determining how to ensure that employees are at work when they are supposed to be.Small businesses need to be able to easily capture and maintain attendance information. ManagerAssistant performance management softwware for small businesses does just this and is the most user friendly cost effective solution available.
Employee performance management is a crucial part of small business success. Without it, the small business owner cannot know which employees are excelling and which need more improvement– who needs a raise, who needs a talking to, and who needs to be let go. What’s more, without a standard, job-related, accurate, and relevant system for performance reviews, the small business owner might find him or herself running afoul of nondiscrimination law: careful employee performance management records can be a valuable defense against claims of wrongful termination.
But all of that record keeping can be a lot of work! An employer might find himself with some data in spreadsheets, some in text documents, still more in email correspondence, and worst of all, some tucked in paper files in a cabinet in the mail room. What a mess.
The solution for good employee performance management without taking up a lot of valuable time and money is workforce management software from ManagerAssistant.com. The low cost of ManagerAssistant.com products are lower still when the radical time savings are taken into account: how much is it worth not to have to dig through employee files before that annual review?
With ManagerAssistant.com software applications, just a little setup gives managers maximum control of their data, highly granular privacy settings, and unlimited employee entries.
The HRweb complete online solution, on the other hand, provides a turnkey package with nothing to install– managers simply log in and start getting their employee files under control! With either system, employee performance reviews, detailed employee information, including benefits, salary, attendance, and job history are all in one place.
With our products, managers have all the data they need to produce professional-quality performance reviews in minutes. Provide timely and accurate documentation empowering Management to make fair and accurate decisions.
Employee Performance Management Software gives small business owners and managers the tools they need to do their jobs better, and lead their employees, and their companies, to greater success.
Use Workforce Management Software for Small Business to manage Incentives and Increase Employee Attendance and Decrease Labor Costs
“You get more of the behavior you reward. You don’t get what you hope for, ask for, wish for or beg for. You get what you reward.”
~ Michael le Boeuf
A comprehensive Workforce Management attendance program can save the equivalent of the salary of several employees each year.
A day off as an incentive for perfect attendance?
Some inexperienced managers award a day off to employees with perfect attendance for a one year period. This is rather like giving a pack of cigarettes to someone as a reward for quitting smoking. The cost of a day off is much higher than one would believe at first glance. Consider a conservative figure of $15/hr for an employee wage and then include an additional $5/hr for benefits and overhead which yields an hourly cost of $20. The cost of a day off is roughly $160 or higher. If you have 200 employees with perfect attendance the cost is an unexpected $32,000 per year. This does not even take into account the lost productivity of the coworkers of the employee who has the day off.
Why do an incentive program?
An incentive program can be effective at a far lesser cost than a day off because it derives it’s effectiveness from the interest and excitement it creates not just from the dollars it awards. Think of the lottery. The chance to win something big is almost irresistible to many people. A successful incentive program can offer the chance to win something big with the certainty of winning something of value. This combination grabs employees’ attention and gets them focused on the desired behavior.
Reward and recognition are key factors in generating a high level of excitement for a successful employee performance software program. An incentive award program offering merchandise rewards such as CD Players, Television Sets and Golf Clubs will generate employee interest and motivation. At the beginning of the program incentive award catalogs are distributed to all participants. When the employee takes the catalog home, winning becomes a family goal. Family evolvement then becomes an additional motivating factor.
Then add the factor of recognition. At the end of the year all employees can be awarded a tee shirt, jacket or some other visible evidence of their accomplishment. This helps the employee feel appreciated and gives them the opportunity to share their accomplishment with their coworkers. One cannot overestimate the importance of instilling the sense of appreciation. Many employees stay at a lower paying job than they otherwise might have because they do feel appreciated.
“If only half of your workforce achieves perfect attendance for the year your savings amount to a whopping 48,000 per year.”
How much should a firm invest in an attendance program?
The first step is to calculate the current cost of absenteeism. A simple formula is: <average missed days per employee> X <number of employees> X <average salary + overhead per employee> = Total Cost of Absenteeism. This of course does not include all the intangible costs of missed days such as decreased productivity of coworkers who inefficiently fulfill the function of the absent employee.
In the example above, if the workforce of 200 employees misses an average of 3 days each per year the cost per annum is $96,000. If only half of those employees achieve perfect attendance the annual savings is a whopping $48,000. Often firms enjoy collateral benefits of increased quality and productivity as well. Once the potential savings is estimated an intelligent decision can be reached as far as the expenditure to achieve the goal. A typical budget for an attendance program might be 25% of the estimated savings. See the strategies that other firms are using to increase and manage attendence.