How Can We Set Up an Effective Monthly Performance Review System for Our Growing IT Firm?

Hi, I am working in an IT firm as HR Manager. My company is just a year old in India. The problem we are facing is the consistency in performance. Hence, we have decided to review the performance on a monthly basis so that we can put a little pressure on employees to perform regularly.

As we are in the initial stage of growth, we don't have enough skilled staff to design such a system. Without any guidance and help, it is not possible to come up with the required process. Please suggest how to go about making such a system. What should be the criteria for judging the performance monthly? Can it be technical, non-technical, etc.?

Bharti

Dear Bharati,

We faced the same problem, and what we did is we started taking daily or weekly (in some cases) reports of their activities. These reports are directly linked to employees' performance-linked incentive scheme. Also, we made it clear about monthly KRAs for them. The report format is provided by the HR department. This approach helps significantly because even if a person leaves the organization, the new joiner can pick up where the previous one left off based on the reports. It also helps in analyzing the competency of individual employees by superiors.

Hence, if you refer to it as a "performance review," the ultimate result is that people will start expecting more in terms of promotions, praise, gifts, payments, etc. It can be challenging to keep track of all such records by the year's end. In our case, we conducted promotions and increments after the "performance review" at year-end, but everyone will have the opportunity to prove themselves through base incentives.

Hope this information is helpful. If you have any queries, please feel free to revert back.

Regards,

Shailendra