Management reports can be an invaluable tool for making data-driven decisions in your business, and they are a wonderful thing to have in hand when doing employee reviews. Here is what you need to know about implementing them in your employee review system.
Benefits of Using Management Reporting in Reviews
Employee reviews can seem to be a subjective and fallible process. Since you aren't able to see every single employee contribution personally, it's hard to know where to start when reviewing employees. Management reports can help you deliver a more objective review and help your employees know how they will be evaluated. If you consider the management reports as a conversation starter, they can be very helpful in tracking down problems and successes in employee performance.
What to Track?
There are a number of helpful accounting details that can give you an idea of your employees' productivity. For instance, the number of billable or direct hours can be a helpful tool. You can see how much time your employees spend working directly on projects and income-generating tasks versus how much time they spend on administration and other in-house tasks. With this information, you can reevaluate the tasks that you assign to employees to increase their utilization. You may also need to address how some employees spend their time.
Tracking employee absenteeism and hours worked can also pay off. For instance, you'll be able to see which employees aren't pulling their weight within the company. You may be able to reward employees who have gone the extra mile, or you may realize that you need to redistribute the workload to make the share of work more fair for everyone. Whichever statistics you choose to track, you may need to speak with an accountant to set up an internal accounting system that makes it easy to track these statistics.
Outsourcing Your Management Reporting
Doing thorough management reporting can take a lot of time and effort that you may not have as a decision-maker. If you're in this position, it's possible to outsource this duty to a third party accountant. They may deliver weekly, biweekly, monthly, or quarterly reports on each employee so that you can have a consistent record over time.
In short, using management reports to track employees' value can help you to make efficient and thorough decisions. By using a reliable accountant to get these numbers easily, you can integrate this system into your management routine without having to carve out a lot of extra time.