One-Year Plan or OYP is based on the concept that each employee is different from another and so, he should be addressed individually and not as part of a herd. It would cover the following points in simple and crisp language:
The employee’s job role for the year
What he needs to deliver
What he needs to do to meet his deliverable
The areas on which he will be appraised
Areas of improvement
The areas in which his seniors and the company will help him to improve
If a part of the employee’s compensation is linked to performance, it should be mentioned in the third point.
OYP ensures that managers take responsibility for their teams and help them improve. It is a document to which employees can refer during the year in case there is any confusion. A few more points that can help are:
Induction: A good start is half the job done. Induction helps an employee get to understand the company in a particular order and well before the actual job starts. It should cover as much ground as possible for the employee.
Simple and practical policies: Corporate structure has a tendency to complicate matters. A strong emphasis should be placed on making policies simple to understand and practical in implementing.
Events and records: Any kind of discussion with an employee on performance and delivery should be documented so that no one needs to rely on memory and both parties have something to refer to.
Express appraisal: Companies which have a policy of once-a-year appraisal rely too much on their managers’ memory to be able to judge the employees correctly. A quarterly express appraisal would help employees to know how they are doing and the manager to review them collectively for an annual appraisal. Express appraisal could be as simple as giving an employee a rating of 1, 2 and 3 and a comment without involving much paperwork.
Information: It is always good to let your employees know what is happening in the company beyond their team and vertical. It helps them see how their work is helping other verticals, customers and the company, whose overall progress always motivates every employee.
Know more about OYP and employee’s compensation at the University Canada West, one of the top-most universities in Canada offering business and management related programs.