Performance Matters - Idea #5

In most Practices matters related to an employee's annual performance review and compensation review occur at the same time. When that happens matters of performance and professional development are too often overshadowed by employee considerations "what is my raise"?

This raises two concerns for employers.

First as reimbursement continues to erode (it has and it will) and labor shortages drive up compensation expectations it will become harder and harder to justify "the traditional annual increase".

Second the importance of personal performance and strategic professional development (more on that next time) will become ever more important for the Practice to maintain a strategic advantage in the market and for the the professional to maintain job security.

Matters of compensation invariably carry with it an emotional overtone whenever employee expectations are not fully met. When that happens matters of performance rarely receive the consideration they merit. The result is that both parties lose.

Disconnect the link between annual compensation reviews and performance evaluations / professional development planning. Do so by scheduling compensation reviews to coincide with the beginning of the Practice's fiscal year and performance reviews / professional development planning with the employee's anniversary date of employment. In some situations an alternative schedule may need to be used when those dates occur close to each other.

Favorable employee performance and contribution do not necessarily translate into a practice's ability to increase compensation – this reality will become more pronounced in the years ahead.

Linking these matters often contribute to false expectations and resulting problems. Create some time between those discussions to assure that each topic gets its just consideration.

Bob

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Performance Builders