New guidance warns that poor performance criteria can hurt engagement
Measuring employees' performance should go beyond what they accomplish in order to improve outcomes at work, according to new guidance from McLean & Company.
The guidance from the HR research and advisory firm underscored that performance criteria should evaluate both what employees accomplish and how they accomplish it.
Employers should also avoid performance criteria that are too generic, too complex, or poorly aligned with how work gets done.
"Performance criteria should aim to make success clearer, not more complicated," said Leann Schneider, director, HR research and advisory services, at McLean & Company.
"HR leaders need to define expectations that reflect both outcomes and behaviours, keep the number of criteria focused, and ensure employees can see how their work connects to broader organisational goals."
According to the guidance, a structured approach to relevant performance criteria includes the following priorities:
- Reviewing organisational context by grounding criteria in the organisation's performance management philosophy, strategic objectives, employee segment needs, and operational realities.
- Exploring criteria options by assessing which combination of goals, role expectations, skills, competencies, values, and organisational citizenship behaviours best fits each employee segment.
- Weighing and communicating criteria by assigning importance based on what matters most across roles, functions, and segments, while equipping managers with the tools and context needed to explain changes, address resistance, and gather employee feedback.
Benefits of relevant criteria
Employers who provide clearly defined criteria will help clarify expectations and support fairer evaluations, according to the HR advisory firm.
They will also see improvements in employee engagement, productivity, and organisational culture. In fact, the report underscored that employees who understand their job expectations will be 8.6 times more likely to be engaged in their work.
On the other hand, firms that often put a strong emphasis on outcome-driven metrics and rely on generic criteria can damage employee experience, which in turn can raise the risk of voluntary turnover and stress levels among the workforce.
"When criteria are grounded in role realities and reinforced through communication, feedback, and coaching, organisations are better positioned to support employee growth and make performance management more effective," said Justine Czencz, manager, HR research and advisory services at McLean & Company.
The findings come in the wake of evolving job expectations due to rapid technological advancement in workplaces, resulting in employees being deployed to higher-value tasks.
