Performance Management and Employee Segmentation
The performance management is not just a tool to set goals, evaluate the performance and behavior of employees. HR has to use the performance management as a tool to put employees in different segments. HR cannot give the same support to all employees. It has to define different groups of employees, and it has to plan actions for them.
HR has to be effective; it cannot provide the same support to all employees. It has to segment employees as the defined service levels can be reached. Most organizations distinguish between managers and employees, but it is not sufficient. HR has to segment large groups of employees as training courses and development programs can be sharply focused to reach the target group.
The efficient performance management system cannot exist without defined segments of employees. The segmentation of employees is necessary for the development of HR tools, motivation of employees and saving costs for the organization. HR cannot invest equally to all employees in the organization.
Motivation is about differences in the organization. Employees want to have benefits others do not have. The performance management should provide the guiding information for HR and managers to segment employees correctly.
Most organizations use these segments:
- Top performers
- Strong Corporate Values
- High Potentials
- Future Leaders
- Low performers
The top performers should be valued for bringing the highest immediate value added. Their sales volumes are higher than the average, and they can sell during tough times. They want to be recognized as strongest employees, and they want to see the recognition on their pay slips. They are usually top sellers, but they are weak in their management style.
The employees with strong corporate values are the angels of the top management. They spread positive messages about the business strategy, the business development and the corporate culture in the organization. Their performance is fully acceptable, but they are not the performance stars. They are excellent in connecting teams and individuals. They bring stability to the organization, and they are willing to participate in change management projects. They are not willing to receive high bonuses, they want to be participating in projects. They want to be recognized publicly by the top management as valuable employees.
The high potentials have the managerial potential, but they lack the leadership skills and the leadership potential. They are skilled in analytics, goal setting, communication skills and negotiation skills. They can manage large teams, and they can achieve challenging goals. They are identified during the performance management cycle, and they are identified as employees ready to move to a different job position. They make the organization delivering its promises to customers.
The future leaders are a valuable segment of employees. They are not many in the organization. They are identified in the performance management, and they are confirmed by the individual development assessment center usually. They go through dedicated programs and challenges, and they develop their leadership skills to become future leaders. Just few have a real chance to become the leader of the organization. Others usually leave the organization. The identification is usually the greatest value for them. They are motivated to become leaders within several years.
The low performers are a different segment of employees. Nobody wants to be in that segment. The employees have to improve their performance and behavior. The organization watches them and provides individual programs for the performance improvement.
