Add value, not cost!

07 July 2014

At a point when wage bills are increasing, it’s time to add value not just cost; says Coachworks’ Senior Consultant Adrian Baker!

Add value, not cost!

As an industry we spend millions of pounds ensuring that HR paperwork is legally compliant to protect employers and employees from falling foul of employment legislation, yet there’s evidence that basic clarity around the purpose of employment is still required.

If you ask a group of people in the same role for the five things they actually need to DO each day, you will almost certainly receive a less than consistent answer; demonstrating an urgent need for clarity around the job inputs which Coachworks call “Value Drivers.”

“Giving your employees the what and the how will ensure they deliver optimal performance” says Mr Baker, and it’s a point that is increasingly becoming understood by the clients of Coachworks at both manufacturer and retail levels.

It is a fact that there is very little focus on documenting the input actions that are required to deliver successful and consistent outputs or results. Every person regardless of role needs to know what they have to do. These value driver actions are the key to delivering the KPIs we are so keen to measure as an industry. (Incidentally I heard recently about a manufacturer that set in excess of 600 KPIs to measure dealer performance! It makes the word “key” a little redundant!)

Adrian added that “every member of staff needs to have their value drivers identified to tell them what their key tasks should be. If there are more than a handful, it is too many. Each of the value drivers may be broken down into 5 constituent parts, but no more.” Once you as an employer have decided what the value drivers are for each role, then they become the key to your recruitment, induction and development of staff.

When hiring for a role, consider the value drivers which should then influence how the role is marketed. You can then frame your competency based interview questions around the value drivers, and if assessments are being completed, these can be influenced accordingly also.

All too often, performance management is used as a last resort to get rid of a failing employee. If that underperforming employee knew specifically what they were supposed to be doing, and were being coached in support of this, far more would succeed. So performance manage positively, and make value drivers part of a balanced score card for each role in order to continuously assess performance throughout the year.

At Coachworks we are convinced that this is the right approach, and it is the way that we recruit and manage our team here. Believe me; it works. Better recruitment, better retention and better results!

If you would like an example set of Value Drivers for a role, then please contact Senior Consultant, Adrian Baker via Adrian@coachworks-consulting.com or contact a member of the team on 01335 324325

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