Measuring the unquantifiable in worker performance

We are a small business with 34 workers. Though small, we try to professionalize our  management policies to maximize every worker’s contribution. For this year, we’re planning to give merit pay increases. But how do we reward the performance of some workers whose jobs can’t be measured, unlike those with sales quotas and production targets?  — Yellow Bell.

Everything can be measured, if you know how. There’s no such thing as unquantifiable work performance. Even employee attitude and morale can be measured by an opinion survey provided that you frame all questions in an objective manner and allow respondents to answer them anonymously.

Performance is key in all aspects of people management. But if you can’t measure performance, then how would you know if there’s a problem? The issue, however, is that some people have misconceptions about worker performance.

Many think that mere physical presence in the workplace is more than enough to signify performance. That’s why they give out perfect attendance awards.

But that’s being too simplistic. In the first place, why should you reward someone who is required to report to the office and be on time every day? For security personnel, perfect attendance is a minimum requirement. Even if they catch burglars, that only means they’re doing the minimum expected of them.

The same thing can be said for other workers. To measure work performance, you must define your expectations. It could mean almost anything that includes quantity and quality of work accomplished at an agreed timeline. In the kaizen context, this means following the QCD approach.

That means achieving the highest possible quality, at the lowest possible cost and fastest delivery to both internal and external customers. Fortunately, there are many measurement tools and techniques for all these.

The most common is the Time-and-Motion Study, which measures a worker’s physical motion (minimizing excessive hand movement, walking, picking up things from the floor, etc.) within a certain period of time. A better option is Value Stream Mapping or Lean Process Mapping, a revolutionary type of flowcharting, though most people would find it difficult to pull off.

EMPOWERED JOBSIf those tools are too complicated for your small business, then your best approach is to introduce a simple set of job requirements, like problem-solving and decision-making, which are usually reserved for management. However, don’t limit this requirement to jobs that are difficult to measure. Instead, require all workers to be adept in solving problems and making decisions pertaining to their jobs.

How can we start doing this? Let’s count the ways:

First, establish an employee empowerment program. Require all employees to make simple decisions regarding their daily work. Give them the authority and reasonable autonomy to do their jobs without being closely supervised. Allowing people to do their work without being micromanaged is one way to motivate them.

You’ll be surprised to find out they can exceed your expectations. Remember to set two conditions: One, a mutually-agreed set of performance standards and targets. For example, reducing overtime hours by 20%. Two, solutions must not involve major spending. Only low-cost solutions will do.

Second, create or review all job descriptions. Without a job description, it would be difficult to evaluate work performance, create a standard, establish a training program or hire new employees. The job description guides employees on how to do their jobs. It comes in different sizes and shapes depending on the complexity of your business.

For clerical positions, a simple description would be enough. This may include the required mental and physical attributes for the job. For example, an office clerk is required to be skilled in handling paperwork like business letters. Also expected are typing, proofreading, editing and filing skills.

In addition, an office clerk should know how to operate a computer, scanner, printer, and other standard office equipment, and store and retrieve voice mail.

Last, analyze the job vis-à-vis the job description. The objective is to validate the actual job and determine its reality and practicality of use by people on the ground. Focus the analysis on work behavior, tasks and results, which would be simpler than a Time-and-Motion Study.

This validation process is imperative when you try to come up with a reward management system. You may be surprised to discover that the actual job can be performed much more easily than how it is described in the job description, especially those versions that may not have been reviewed for more than five years.

All of these can only be successful if management continues to exchange feedback frequently with employees, rather than waiting for annual appraisals.

Discover Rey Elbo’s unique leadership program called “Superior Subordinate Supervision.” Chat with him on Facebook, LinkedIn, Twitter or e-mail elbonomics@gmail.com or https://reyelbo.com