Performance Management: The Better You ‘Perform,’ the Better They’ll Perform, Too
The landscape of work is always changing, and the COVID-19 pandemic has a lot to do with that. In the past two years, companies have normalized hybrid and remote work exponentially.
Offering flexible options such as these when possible is more common than ever.
While this is a great opportunity for employees as it promotes a healthier work-life balance, it can sometimes create challenges for employers in measuring performance management. It is essential to the success of any business to monitor and manage employee performance so employees can learn and grow with the company—no matter what sort of environment they are working in.
Monitoring and managing employee performance in a constantly evolving field of work is not always easy, but it is necessary if you want your organization and employees to flourish.
What Is Performance Management?
Performance management is defined as “the ongoing process of communication between a supervisor and their employee(s) that occurs throughout the year.” The communication process typically includes clarifying expectations, identifying goals, setting realistic objectives, offering tangible feedback and reviewing results periodically.
Effective performance management benefits the company while helping to shape and craft productive and engaged employees. When an employee is given specific expectations, sets goals and receives constructive feedback, they’re learning how to become a more valuable resource for the organization. When you help people grow, you help your business grow as well.
A strong, strategic performance management process has always been a key part of promoting employee engagement while strengthening an organization. Even though not every worker has the ability to work outside their place of business, in the age of hybrid and remote work, it is more important than ever to empower your employees through strong performance management strategies. Our landscape of work is and always will be changing. There must be continuous conversations with personnel about performance to navigate this constantly evolving environment.
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Performance Management Statistics
Performance management has a profound impact on employee engagement, and this is part of the reason why it is so important to the successful functioning of any business or organization. Don’t believe it? Here are some statistics on performance management and how it can positively affect employees:
- Companies are now more likely to implement frequent, periodic reviews that focus on constructive feedback, guidance and mentoring. Annual reviews are a thing of the past. When employees are given more frequent feedback, they can learn more and grow more in their respective positions.
- Organizations with ongoing performance management programs in place report almost 40% better talent acquisition. In addition to this, organizations with a continuous performance evaluation system also report 44% better talent retention.
- Organizations with high employee engagement are 21% more profitable. It is a fact that employee engagement increases productivity in the workplace, whether employees are working remotely, on a hybrid schedule or on-site. When employees feel heard and recognized, they are statistically more likely to be empowered and perform better at work. Hence, the importance of strong performance management.
Improving Employee Engagement Through Effective Performance Management
Employee engagement is simple: When employees are engaged in their roles and connected to their personal and professional goals, they are invested in their company and motivated to work harder. Engaged employees unlock new channels for growth. What encourages employee engagement? Strong performance management.
Engaged employees that receive continuous, constructive feedback are going to learn from their mistakes and even their accomplishments and ultimately flourish in their roles. By putting time and effort into your employees and their performance, you’re also putting time and effort into your organization.
There are many ways to foster employee engagement through effective performance management strategies. To name a few:
- Give your employees all the tools and training required for their role: Good performance management starts with a strong relationship between the employer and the employee. When you set clear guidelines and expectations, there is little room for misinterpretation. This is also a great way to build trust from the start. When you are open and honest with your employees, they are much more likely to be honest with you.
- Have consistent conversations about engagement: Communication is key, especially within effective performance management strategies. These discussions relating to engagement should be frequent enough that they are routine for employers and employees alike, and it is a great way to brainstorm solutions.
- Check-in with your employees frequently: Not only are annual performance reviews borderline ineffective, but also they are a thing of the past. How can you offer constructive feedback or correct behavior if this conversation only occurs once a year? It is impractical. Regular, consistent feedback is much more beneficial to employees—and employers. This also leads to faster course correction and reduces issues and misunderstandings.
Our landscape of work has changed exponentially in the past few years. Offices across the nation have closed their doors because their employees can work just as efficiently from their homes and hybrid work environments. Now that we have the ability to spread our workforce much more widely, strong performance management strategies are more vital than ever. With effective performance management, you have the ability to increase employee engagement and strengthen your organization as a whole.
In other words, the better you “perform” your performance management, the better they’ll perform as well.