The people you hire in a startup, especially at the top positions, have a direct relation to the growth and success of the startup. With the need to hire fast and right, it is essential to make hiring decisions that are prudent and cautious.
Some of the challenges that surface when hiring for a startup are finding talented and skilled people and retaining them. Hiring and retention become a problem with the absence of defined people management practices and goals in a startup. This is why it is vital for startups to reward their employees often and use proper performance appraisal techniques.
Performance reviews, KRAs, and appraisals play an important part to gauge the growth of a startup. However, it is also important to keep track of a team's performance when the targets are not met.
How does an Inclusive Culture help?
Having an inclusive culture in a startup is necessary to keep a pool of diverse and multi-talented employees feeling comfortable, valued and understood being who they are and doing what they are good at. By telling employees that you intend to create a company environment that is filled with opportunities and possibilities for everyone, you can boost the productivity of the employees and the company, in an unimaginable way.
As reported: Gallup.com
Tapping into a diverse set of employees for their expertise and skill-set, and making leadership support a highlight in this move, is important to promote an inclusive culture. This is a culture you can benefit from in some ways. It doesn't even matter what your business size is!
An inclusive culture can prove to be rewarding not just for the employees, but for the company too, in respect of its brand awareness, its reputation, as well as its productivity.
The importance of empowering the employees
It is important to understand that departmental or company results cannot be the sole judge of a person’s competency on the job. There may be an employee out there who could perform better with a little support and adapting to the environment around.
Results, as well as behavior, play a vital role in tracking an employee’s performance.
Here are six important reasons why a performance appraisal matrix is crucial for a growing startup –
For a growing company, it can get difficult to manage the increasing number of personnel. A proper performance appraisal matrix can help a startup to manage their employees with a lot more efficiency.
- Objectivity & analysis
A performance appraisal technique can help employers assess an employee’s contribution towards the company goals more objectively. The appraisal and rating of the employee can be more data-driven which makes further analysis of the employee and company growth systematic and easier.
- Helps the performers stand out
The climb of an employee up the ladder does not guarantee productivity and contribution towards the company goals. Evaluation done on a regular basis keeps the employees motivated to perform and put their best foot forward.
- Customized analysis
Regular evaluation can help a startup design a performance matrix to meet their needs. Complete performance analysis can assist in identifying performing employees from non-performing ones.
- Employee happiness & equality
A performance evaluation is an unbiased way to keep good performers from getting overshadowed. This can ultimately ensure that well-performing employees stay happy and encourage them to meet their objectives and goals.
- Motivates underperforming employees
A performance evaluation helps identify and understand the reason why certain good employees turn into underperforming employees with time. With evaluation, you can allocate the right talent for the right job. This will help keep the employees happy, productive, and motivated.
Identification and growth of diverse talents
A review talk and discussion is not enough to understand the core of a possible problem with an employee’s performance. Having a more defined and visual approach to the appraisal can help direct attention in areas where the employee needs to focus on.
A defined and analytical approach can help set a clear set of expectations and goals to be achieved for the concerned employee. Having a clear set of objectives can majorly improve an employee’s performance and motivation.
Business and growth potential with a performance appraisal matrix
Performance appraisal helps determine an employee’s performance regarding contribution and productivity, against the predetermined objectives and goals of the startup. This activity helps the employees reflect on the duties that had been allocated to them; and the company to evaluate the attitude, behavior, and stability of the employee towards their job profile.
Having a clear set of objectives and goals and a data-driven approach towards determining the success or failure of meeting those goals is crucial to assess the growth and the potential of a business.