Performance Manager | 5 mins read

What is a Performance Manager? Benefits of Performance Management

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Lauren Christiansen

By Lauren Christiansen

What is a Performance Manager and Why Does it Matter?

In the restaurant business, managers may track performance at an individual, group, or business unit level. For fast-food chains and other conglomerates, leaders may track performance from an organization-wide point of view.

A performance manager uses any of these categories to gauge productivity and efficiency in a restaurant business. Effective performance management encompasses the activities that optimize employee performance as they align with a restaurant's key objectives.

While management may track operational performance through online reviews or budgets, performance managers work with individuals to improve productivity. This is a strategic view, rather than an on-hand solution for poor performance. For example, a restaurant supervisor may create a set of policies to streamline onboarding and optimize training.

Because performance management involves people, managers may cooperate with the HR team to streamline this process.

Here are some of the top benefits of performance management in the restaurant industry

1. Performance Manager Optimizes Training Processes

The Human Resources department utilizes a set of processes to improve employee skills and offer support to new hires. The aim is to optimize onboarding so new hires are more equipped to handle their duties.
An effective performance manager will ensure that any onboarding procedures align with the restaurant's overarching goals. For example, a manager may use key performance indicators and a set of metrics to track a new server's sales over two weeks.

Good performance managers provide feedback and support to those who are struggling. This strategy increases profit and productivity, which boosts each employee's average salary and adds to the bottom line.

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2. Performance Manager Improves Morale

Employees like to know that they are doing a good job. Many restaurants utilize performance reviews to recognize high-performing employees. While reviews are critical, they shouldn't just set goals for the next quarter. They should create a culture for a supervisor to recognize talent wherever it exists.

Happy workers are more productive. The vast majority of employees would work harder if they thought they would be recognized for it. It's not enough to boost the average salary every few years or say thank you once in a while. Team leaders need to recognize hard work and create incentives to increase productivity and improve morale. This will decrease turnover, add new sales, and improve the quality of customer service.

  • Only 36% of employees are engaged in the workplace
  • An engaged restaurant staff increases profit by 21%
  • 85% of employees are engaged when there is good internal communications
  • Only 16% of restaurants and small businesses utilize technology to monitor engagement

3. Performance Manager Identifies Employees for Promotions

Quarterly reviews are an excellent way to understand employee performance and identify who to promote. Restaurant managers should ensure each team member goes through the review process.

This will help management know who to give salary increases to and who to keep at the same rate. Regular reviews will not only make sure that the right team members are picked for a promotion, but will increase visibility into the selection process.

4. Performance Manager Streamlines Workforce Planning

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When management conducts regular reviews with team members, it helps to streamline workforce planning. Management can discuss real-time and future workloads with restaurant staff to pinpoint any future tasks.

If workers struggle with everyday tasks, managers can enact policies to improve collaboration. This will free up time for a low-performing team member and allow him/her to focus on key requirements. It will also help to boost low morale and increase productivity, which decreases the turnover rate.

  • 83% of restaurant managers think it's harder to attract and maintain talent
  • 76% of HR managers claim onboarding processes are underutilized
  • 47% of HR managers say employee retention and turnover are the biggest challenges in workforce planning

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Try it free for 14 days.

5. Performance Manager Improves Turnover

Businesses that offer regular feedback and conduct reviews have a 15% lower turnover rate. Employees like to know what they are doing right, what they need to work on, and how to go about doing it. They also like to know that someone is listening to their concerns.

High turnover has a vastly negative impact on the restaurant business. It hurts customer service, decreases morale, and harms collaboration efforts. Moreover, it's expensive to constantly train and hire new team members. With a good performance management strategy, employees are held accountable for their performance and turnover will decrease.

Managers who reward high-performing team members and ensure everyone knows what they need to do will have happier employees. This will also improve communication between management and subordinates and informs supervisors of any major performance issues.

6. Performance Manager Provides Employee Autonomy

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When team members understand the restaurant's objectives, they can make their own decisions and plan accordingly. Employees are happier and engaged at work because they aren't micromanaged each day. Furthermore, policies and goals won't change on a day-to-day basis.

This provides the structure necessary to work efficiently and complete tasks. Managers utilize regular feedback sessions to track employee performance with a set of metrics. This optimizes the company culture and attracts new talent to the restaurant business.

  • 54% of men and 64% of women claim to experience low autonomy in the workplace
  • Greater autonomy increases accountability by 20%
  • The employees willingness to work independently and the restaurant's willingness to give employees their freedom is what determines autonomy

Key Takeaways of Performance Management

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In conclusion, here is what to know about performance managers in the restaurant industry -

  • Good performance managers identify training needs and improve onboarding processes. They also help to boost employee morale, which increases sales and lowers the turnover rate.
  • Performance managers identify which team members deserve a promotion. They utilize reviews to track progress as it aligns with business objectives. This increases the visibility into the selection process.
  • Performance managers utilize regular reviews to optimize workforce planning. They discuss real-time and future workloads to ensure team members have the resources needed to complete tasks. This streamlines operations and improves morale, which increases sales.
  • Performance managers decrease turnover. They use regular reviews and feedback to ensure team members know what is expected of them. This improves communication between employees and managers. It also ensures management is kept in the loop about any performance issues.

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