Businesses spend time and money to ensure that their physical systems are working to their peak performance. This is an investment that is seen to have a bottom-line impact for the day-to-day operations. Unfortunately, too many businesses fail to apply this same process to their greatest business asset—their employees.
A recent study by McKinsey & Company revealed that "A" performers tend to be 50-100% more productive than "C" performers. Clearly, identifying the "A" performers can enhance an organization's performance. So, how does an employer identify the "A" performers, and once identified, how does an employer retain them?
The answer to these two questions is simple: Assessments
Assessments, or testing, have long been an effective, yet underutilized, tool to help employers make the most of their employees. To effectively manage any part of a business, a leader needs to have as much information as possible. Assessments allow you to evaluate and develop individual performance throughout the organization. It should be used as a tool to encourage your best performers to maintain their high level of performance and to motivate poor performers to do better.
Benefits of using assessments as part of an ongoing results management process include:
- Provides objective analysis for promotion or compensation considerations
- Asset allocation - making sure the right people are in the right jobs
- Identification of training/development needs to reach maximum effectiveness
- Identification of employees who have the potential for advancement or who might be better suited in other areas of the organization
- Reduced turnover costs - identifying problem areas before it is too late