How can you create a performance management system that fosters employee engagement in corporate accounting?

Performance management is a crucial process for any organization, but especially for corporate accounting, where accuracy, compliance, and efficiency are paramount. However, many performance management systems are outdated, rigid, and demotivating, leading to low employee engagement and high turnover. How can you create a performance management system that fosters employee engagement in corporate accounting? Here are some tips to help you design and implement a system that aligns with your goals, values, and culture.

1 Define clear and SMART objectives

One of the first steps to creating a performance management system that fosters employee engagement is to define clear and SMART (specific, measurable, achievable, relevant, and time-bound) objectives for your corporate accounting team. These objectives should reflect the strategic priorities of your organization, the expectations of your stakeholders, and the professional development of your employees. They should also be communicated and agreed upon with your employees, so that they understand what is expected of them, how they will be evaluated, and how they can contribute to the success of the organization.

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Mohamad Hassan

Finance Manager I BBA I CFMA I MBA I CFC I MABR I CFM I
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Clearly define the goals and expectations for employees in the accounting department. These goals should be aligned with the overall objectives of the organization. Also clear expectations provide employees with a sense of direction and purpose.

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2 Provide regular and constructive feedback

Another key element of a performance management system that fosters employee engagement is to provide regular and constructive feedback to your corporate accounting team. Feedback is essential for learning, improvement, and recognition, and it should be based on objective data, observations, and examples. You should also encourage your employees to give and receive feedback from their peers, managers, and clients, as this can foster a culture of collaboration, trust, and accountability. Feedback should be given in a timely, respectful, and supportive manner, and it should focus on both the strengths and areas of improvement of your employees.

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3 Use a balanced and flexible approach

A third tip to create a performance management system that fosters employee engagement is to use a balanced and flexible approach that considers both the quantitative and qualitative aspects of your corporate accounting team's performance. While numbers and metrics are important for measuring the results and outcomes of your team's work, they are not the only indicators of performance. You should also consider the behaviors, skills, competencies, and values that your team demonstrates in their work, such as ethical standards, problem-solving abilities, communication skills, and teamwork. Moreover, you should be flexible and adaptable to the changing needs and circumstances of your organization, your team, and your employees, and adjust your performance management system accordingly.

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4 Recognize and reward performance

A fourth tip to create a performance management system that fosters employee engagement is to recognize and reward performance in a fair and consistent way. Recognition and reward are powerful motivators for your corporate accounting team, as they show appreciation, respect, and value for their work. Recognition and reward can take various forms, such as verbal praise, written feedback, public recognition, bonuses, incentives, promotions, or career opportunities. You should align your recognition and reward system with your performance objectives, criteria, and standards, and ensure that they are transparent, equitable, and meaningful for your employees.

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Mohamad Hassan

Finance Manager I BBA I CFMA I MBA I CFC I MABR I CFM I
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Promote an environment of acknowledgement and appreciation for the employees who deserve praise and acknowledgment for the efforts they've put in. Like "Employee of the Month" awards or more casual ones like publicly acknowledging someone during team meetings. Rejoicing in victories raises spirits and inspires more effort.

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5 Involve and empower employees

A fifth and final tip to create a performance management system that fosters employee engagement is to involve and empower employees in the design, implementation, and evaluation of the system. By involving and empowering employees, you can increase their ownership, commitment, and satisfaction with the performance management system, as well as their trust and confidence in the organization. You can involve and empower employees by soliciting their input, feedback, and suggestions on the performance management system, by giving them autonomy and responsibility for their own performance, by providing them with resources and support for their learning and development, and by encouraging them to participate in decision-making and problem-solving processes related to their performance.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Paula Conrad

Wellness Coach & Mindset Trainer
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From my perspective, a performance management system is a tool to manage documentation consistency on what is being measured and what is important to an organization from a performance perspective. Getting clarity on how (behaviours) leaders and employees embrace to achieve their results will define the employee engagement experience. i.e. What behaviours are being demonstrated to tap into their employee's creativity? In team meetings; is the culture one where voices are listened to be understood and their words matter or it is environment of command and control? It is about finding the balance of actions and behaviours that works for your environment and bringing them to life in your company culture.

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Siavash Eftekhari

Financial & Economic advisor to Board of Directors at CinnaGen Co.
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Involving and empowering employees is crucial for creating an effective performance management system that fosters employee engagement in corporate accounting. Strategies include collaborative goal setting, regular feedback sessions, performance-based rewards and recognition, employee-driven development opportunities, and empowering employees to make decisions. By implementing these strategies, companies can create a performance management system that not only measures and evaluates employee performance but also fosters a culture of engagement, motivation, and professional growth in the accounting department.

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Mohamad Hassan

Finance Manager I BBA I CFMA I MBA I CFC I MABR I CFM I
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Enable employees to increase their skills and expertise through training sessions, workshops, mentoring programs, or financial help for professional certifications. Investing in staff development demonstrates a commitment to their development and can boost employee engagement and work satisfaction.

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How can you create a performance management system that fosters employee engagement in corporate accounting?

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1 Define clear and SMART objectives

2 Provide regular and constructive feedback

3 Use a balanced and flexible approach

4 Recognize and reward performance

5 Involve and empower employees

6 Here’s what else to consider

Corporate Accounting

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