Let’s start with the basics.

Performance management is a strategic approach to develop and sustain improved performance in employees.

Put simply: performance management helps employees to do their best work and helps managers support them every step of the way.

The goals of performance management:

– Create and identify individual objectives/goals
– Accomplish strategic objectives for the organisation
– Provide feedback
– Improve performance
– Hold people accountable
– Review results
– Reward and recognize

Performance management, done right, can help businesses create (and sustain) a culture of growth development where employees are engaged and thriving in their roles.

Keeping on track of your teams, and offering them opportunities to grow and develop, has never been more important than in today’s hybrid-working era.

People want to develop professionally and advance their careers, so many seek a genuine commitment from their workplace to help them. In 2019, 94% of employees said they would stay at a company for longer if their employer invested in their development.

The easiest place to start is with performance management and providing clear development pathways. But it’s easy to get wrong – especially when you’re using a slow and, frankly, broken system.

Having a system in place that’s truly effective will revolutionize the way performance management is done (and seen) in your business.

In the words of Forbes council member, Susan Hunt Stevens, “You Need A Strategy To Engage Your Greatest Asset: Your People”.

But, what’s going to help you do that?

You guessed it, engagement starts with an effective performance management strategy that supports a continuous feedback culture and sets your people up for success.

Did you know?

Employee engagement rates are nearly three times higher when managers regularly keep in touch. And those highly-engaged employees will be more motivated to achieve their own personal goals, and your company goals too. 

• Insights and powerful analytics

Wouldn’t it be great to have a 360 view of your team’s performance? Well, you can! Performance management software allows you to see the impact your program is having. You’ll have all the data you need in one place so you can keep on top of your teams objectives, whether that’s congratulating them for achieving one ahead of schedule, or raising concerns about missed deadlines.

• Real-time feedback

Getting feedback once a year can feel like a lifetime for your employees. Who can remember what they committed to – or why – if there’s a whole year in the middle? Providing instant feedback for objectives they’re currently working on can boost engagement, motivation and help your people achieve their goals more efficiently.

• Review performance on a continuous basis

We know the world of work is changing with hybrid-working now the ‘new normal’ for many of us. A huge reduction in face-to-face contact means it’s fundamental that conversations around development happen on a regular basis. 

In a recent poll, a whopping 82% of employees said they want their company to see them as a person and not just a worker. Using a system that encourages continuous and purposeful feedback means you won’t be limited to those annual and bi-annual reviews that, let’s face it, are often ineffective and robotic.

In today’s candidate-driven market, employees have more job options and opportunities than ever before, so you need to go the extra mile to keep the people that are contributing to your business.

Our Learner Survey report uncovered that 2 in 5 people will look for a new job in the next 12 months. For many, it’s to learn new skills and to progress in their careers. People want clearly defined objectives to achieve, goals to reach, and constant challenges to keep them going.

Performance management does all of that, and more. Giving your people growth opportunities lays the foundation for employee loyalty; through powerful performance management you’ll be motivating tomorrow’s leaders – it’s a win-win for your business!

Organizations want productivity levels to be sky-high, and employees want continuous development and opportunities to grow. So, how can you use performance management to achieve both? Regular check-ins and performance reviews give managers and employees the opportunity to discuss areas for improvement.

It provides your teams with a safe space to express their interest in learning new skills and allowing them to take control of their own personal development and goals. Those new skills can have a huge positive effect on employee performance – making it beneficial for both your people and your productivity levels.

• Effective goal-setting and management

Providing your teams with clarity and direction will aid their development and ensure everyone is set up for success. Performance management software allows your employees to easily see their objectives and update on their progress in one centralized location – no more digging out those buried word documents!

• Aligning objectives to achieve top organizational goals

Performance management software that creates an easy link between individual and organizational objectives gives employees a deeper understanding of their contribution to higher-level goals. When goals are aligned, it unites your people at every level of the organisation to come together and achieve success. 

Communicating these goals through your performance management system will:

– Increase motivation

– Improve focus

– Boost productivity levels

– Produce higher levels of engagement

You’ll be building a high-performing team that can help your organization thrive – sounds tempting, right?

A huge part of performance management is setting goals for your people, but the real game-changer is empowering your team to set their own too. Trusting people to establish their own objectives and goals means you’re not only giving them the freedom to contribute to their development, you’re also promoting a self-starter mindset – and that’ll do wonders for employee autonomy.

So, it’s clear (we hope) that now is the time to invest in your people – or you’ll be waving goodbye to your top talent before you know it.