It\u2019s surprising how accurate a description of your workforce can be given through an analogy with horses, by separating them into these 4 categories.<\/p>\n
Racehorses<\/strong><\/em>\u00a0\u2013 This describes your top performers, those employees who are driving your business and delivering success, whether this be profit, growth or a combination of both.<\/p>\n Workhorses<\/strong><\/em>\u00a0\u2013 These are your \u2018engine room\u2019; dependable, reliable and the backbone of your workforce and typically form the majority of your employees.<\/p>\n Lame horses<\/strong><\/em>\u00a0\u2013 Struggling or not performing at their best, these individuals may come good with some development or nurturing.<\/p>\n Dead horses<\/strong><\/em>\u00a0\u2013 The dead wood of your organisation, hanging around because they are being paid and generally performing badly.<\/p>\n The success, or otherwise, of any organisation can be measured by the percentage of each category found within its workforce, and a typical percentage split would be 20\/70\/5\/5, but inevitably the output and quality of your workforce can vary enormously.<\/p>\n \u00a0\u201cUndervalued employees can have catastrophic consequences on your business performance\u201d<\/strong><\/em><\/p>\n By having a strategy in place to retain your best performers, improve overall standards and manage the worst performers out of your business. But, often this falls into the \u2018too hard to manage\u2019 box and the status quo is maintained. By taking a one cap fits all approach businesses lose their Racehorses and gradually turn their workhorses into lame or dead horses, as those individuals feel undervalued by their employer with catastrophic consequences on your business performance.<\/p>\n How can you avoid having too many lame horses?\u00a0<\/strong><\/em><\/p>\n Performance management<\/em>\u00a0enables the employer to\u00a0measure the effectiveness of the employee<\/em>, set expectations for their future output and ascertain their true value to the business.\u00a0 Effective performance management is a two-way process and is best managed through regular dialogue with employees.<\/p>\n A good\u00a0reward strategy<\/em>\u00a0enables the employer to\u00a0tailor their remuneration package\u00a0<\/em>around their employees. This will factor in the value of the individual to the business, their value in the external job market and the importance of their role to the Company. The key output will be to generate internal equity and external competitiveness. Annual pay reviews, incentive schemes and other benefits will all form part of the strategy.<\/p>\n The answer is to grasp the nettle and truly reward performance using the following tactics.<\/p>\n