Faced with the pressure to maintain business operations and development, businesses must always find ways to stay ahead of trends, continuously improve products and services, save money, optimize costs, and make the most of their resources. And one of those resources is human resources, which is the department that operates and implements the business activities of the business. Having good human resources is always the top priority of the organization, but how to optimize performance and improve the capacity of each individual employee is something that businesses are very interested in today.
Labor productivity is not only measured by the number of hours worked, but more importantly, the quality of results achieved. Businesses need to customize their performance management strategies to ensure that they maximize employee productivity, helping them outperform their competitors.
1.1. Focus on performance rather than just quantity
Working long hours and constantly working overtime is not always a sign of an employee working effectively and producing good quality work. However, many businesses are still "implicitly" measuring performance based on the number of hours worked, but in reality, an employee working 8 hours/day with high performance is still much better than an employee working 10 hours/day but ineffectively.
Businesses need to change the evaluation principle from “doing a lot” to “doing effectively”. Doing effectively means that tasks are solved quickly, correctly, with the right method, and achieving expected results. Doing effectively does not mean taking on a lot of work, always being busy but never achieving the corresponding results.
1.2. Link personal goals with business goals
Turn the organization's goals into common goals, from which each employee will have their own goals to achieve, and contribute to creating common results, completing the common goals for the whole company. Employees will work best when they see their personal goals clearly, are motivated and closely linked to the mission of the business.
CEOs, business owners, and managers need to ensure that everyone in the organization knows how and in what way they contribute to the overall success. Each individual's understanding, proactive implementation, and execution of the plan is the biggest driving force to create and improve work efficiency and performance.
2.1. Performance management using OKR/KPI
Performance management using OKR (Objectives and Key Results) and KPI (Key Performance Indicators) is a comprehensive approach in which businesses use both tools to set goals, measure progress and evaluate the performance of organizations, departments and individuals. Businesses should apply systems OKR or KPI, or combine both as leading organizations are adopting to track performance scientifically and transparently.
Performance management using OKR/KPI helps businesses both have strategic direction, promote breakthroughs (through OKR), and ensure effective and stable operations (through KPI).
2.2. Continuous feedback instead of annual reviews
Continuous feedback (Continuous Feedback) is the process of providing information and receiving feedback regularly, promptly and effectively. constructive between managers and employees (or between colleagues) throughout the working process, instead of being limited to periodic performance reviews (usually quarterly or annually). Superiors and subordinates, elders and juniors… both sides can exchange and give feedback to each other in a two-way manner with gentleness, politeness, and courtesy, not limited to one-way feedback.
This multidimensional nature of culture of continuous feedback creating many opportunities for communication so that there is understanding between managers and employees, improving the effectiveness of cooperation. As soon as a problem arises, employees proactively recognize and respond to relevant individuals and departments to quickly resolve it, instead of remaining silent and letting the problem escalate dangerously. When the continuous feedback process is effectively implemented in both the giving and receiving directions, each employee will be highly aware of the responsibility of the work they undertake, promoting improvement and innovation to proactively improve work performance.
Effective execution
3.1. Establish effective workflows and apply technology to management
Cumbersome workflows, long waiting times, and unclear procedures are the biggest causes of wasted time and reduced productivity. Businesses need to standardize workflows through
- Analyze and eliminate waste: Review redundant steps that do not create value in the work process, establish strict regulations when coordinating between departments to improve information comparison, enhance coordination and teamwork spirit.
- Automate and equip with the right tools: Use software tools and technology applications in management to automate repetitive, manual tasks. Provide modern technology tools, work and project management software so employees can collaborate, track progress and share information effectively and without interruption.
3.2. Build a reasonable reward policy
Timely and fair rewards help motivate employees. Rewards can be money, promotion opportunities, or advanced training courses. Building reasonable reward policy is one of the most effective human resource management tools to promote performance, increase engagement and retain talent. A reward policy is considered reasonable when it ensures fair, transparent, timely and diverse, at the same time closely linked to business objectives of the business.
3.3. Soft skills training in parallel with professional skills
In addition to professional knowledge, employees need to be trained in soft skills such as communication, self-management, and critical thinking to work more effectively. In a dynamic, modern, and technologically competitive business environment, soft skills are the "key" for employees to maximize their capacity. Communication, collaboration in multi-functional teams, time management, problem solving, knowing how to apply technology, and especially critical thinking to make decisions based on data instead of emotions are the skills that make the difference between employees.
Summary
Optimizing labor productivity is key for businesses to maintain a competitive advantage. This is also is a continuous strategy aimed at standardize way of working, digitizing process, and uplifting of the team to achieve outstanding business results. Thanks to optimizing labor performance, business owners, managers, and CEOs have space to plan strategies, expand business development, and always feel secure about a solid, combative team, thereby building a reputable and sustainable business brand.
