Performance management is a system of processes to track and improve employee performance in line with organizational objectives.
Great performance management is about helping employees to develop their skills and consistently improve themselves, in the ways that work best for them.
Current theory has moved on from traditional to continuous performance management. Traditional performance management is a top-down, static process which establishes objectives (individual, team or organizational) at the beginning of a term and expects them to be fully achieved in a given timeframe. Management then monitors performance against objectives and shares an evaluation periodically. It's an outdated and archaic management practice, and has a range of problems associated with it.
Continuous performance management is defined as performance management processes which are ongoing throughout the year. Management input typically includes one-on-one meetings and conversations between supervisors and direct reports; regular performance and development employee reviews; as well as continuous 360° feedback from peers and colleagues.
An effective performance management process benefits both individuals and the full organization.
A survey by Bersin and Associates found that of those companies that reviewed goals each month, over half were also in the top percentile for performance. Of those companies that reviewed goals annually, only 24% fell into the same bracket.
A study by Gallup identified that employees that had regular one-on-one meetings with their managers are almost three times as likely to be engaged.
On top of that, frequent feedback has been shown to boost performance by up to 39%.
Performance management is not the responsibility of just one person or one department. Every participant is accountable for the whole of the performance management process.
Optimizing your performance management process is achieved by aligning these key players in the organization.
The million-dollar question! How do you best manage performance without disrupting or negating the processes which are currently working well? The internet is inundated with suggestions, research and tactics to improve your performance. It’s up to you and your organization to decide which ideas will work when integrated into your performance management processes. Here are a few best practices:
An organization may wish to utilise performance management in order to monitor the overall performance at an individual, team, departmental or organizational level.
Being able to measure performance in an organization is not an easy task. There is a process that needs following in order to effectively do so.
Before measuring the effectiveness of your performance management process you will need to gather key information and indicators regarding your goals and objectives.
What are the specific goals that you are trying to achieve through performance management?
Some initial information that you will need includes:
How many employees are actively engaging with your performance management processes?
Use these evaluation criteria as a metric to see if you are continuously improving. Use the initial information criteria to see if your current processes are properly set up and being engaged with.
The management processes which HR departments use is constantly evolving. So too then, does performance management. It needs to flex to help both company growth and industry trends.
Employee performance management software can help you to optimize your current processes. We’ve summarized some of the benefits:
Some other benefits of performance management software include:
Performance management covers a lot of areas of an employee's work day, and an ideal system will enhance your productivity and help you to focus on the work that matter most.
If you're intrested in this, check out these blogs: ‘Don't Think Performance Management Software Is "Worth It"? Think Again’ or ‘Performance management software: Is it worth an investment?’.
Whether you invest in performance management software or just start with scheduling regular employee/manager 1-1s, building a performance management system will bring benefits to all levels of your company.
"Customizable to your requirements"
"Integrated with other software"