February 2022

Pay pressure in 2022 - and how performance management can help

2022 is already proving to be a difficult year for families and businesses alike. At the beginning of the year, many commentators said that a cost-of-living crisis was looming. Today, that feels very difficult to deny. Because of this, and the financial burden this brings to many SMEs, we're taking a quick look at how performance management can be part of the solution to these very real business pressures.

A combination of skills shortages and inflationary pressures means that we are already seeing rates of pay increasing. With businesses still suffering from the battering caused by Brexit and Covid, the pressure to pay people better is coming at a particularly challenging time. But the pressure is real and inevitable.

“You can realise a return on this additional pay investment by ensuring your business has a clear performance management strategy,” says Lead HR Consultant Dian Johnson. “Businesses want to pay their people well but, to do this, they need to be getting the most from their staff. Coaching and training are key.

Business owners need to know how to ensure their employees are really delivering value to the business or, if they are not, to understand what can be done about this.

If you want more from your employees, they will need the skills and motivation to do more. A more skilled workforce with higher levels of engagement will in turn lead to increased productivity.”

RfM HR Services can support your business to devise and implement an effective performance management strategy, introducing a range of activities that will facilitate up-skilling and increased engagement levels.

Transform HR

Boost your people power with expert HR advice

Compliance, training, reviews, policies, contracts... Even if you only have a small number of staff, managing your HR responsibilities can feel like a full-time job.

However, whilst most small companies don’t need an in-house, permanent HR function, they will certainly benefit from having access to our HR Director-led services when they need it.

Get in touch with Diane Johnson, our Lead HR Consultant.

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RfM’s digital transformation experts are only interested in one thing: helping your business to grow and prosper through the best use of digital technology. They will do this by giving you the answers to the questions you should be asking: