3 Essentials for Employee Performance Management
3 Employee Performance Management Best Practices
Employee performance management is the strategic approach that businesses utilize in order to develop and maintain staff member performance in the workplace. Proper employee performance management is crucial for achieving company goals and sustaining a competitive advantage.
Employee performance management is much more comprehensive than other systems such as yearly performance review administration. This is due to the fact that employee performance management is based on continuous performance evaluation instead of an annual review individually administered.
The main objectives of performance management include providing both employees and managers with a system to increase productivity. The established system should clearly demonstrate to employees how they can succeed in addition to explaining how their performance is measured.
The system should allow management to understand both how to monitor and improve employee performance levels. Additionally, management should understand company goals as well as how to accomplish them.
Employee development and promotion opportunities are primary motivators for employee performance management. Main objectives of performance management include-
- Employee engagement increases
- Clear role definitions, goals, and expectations
- Productivity boosts through performance improvements
- Incentivized performance reward program
- Managerial leadership development
Best practices for employee performance management include-
1. Engagement
Engaging directly with staff members is absolutely crucial for proper employee performance management. Case studies show that successful customer and employee engagement can result in a 240% boost in performance related business outcomes.
There are various techniques for human resource professionals to increase employee engagement levels. Various techniques range from consistent short term check ins to more long term annual review opportunities.
Case studies show that employees perform best with monthly or quarterly feedback supplemented with real time check ins in between. Real time check ins allow for company goals and individual performance goals to be adjusted as needed.
Additionally, 94% of employees report that they appreciate real time feedback and development opportunities. As such, the best performance management practices will include both short term and long term check ins in addition to real time feedback.
An annual review via performance appraisals alone is not enough engagement for employees. In fact, 61% of employees feel that the traditional annual performance process is outdated.
Alternatively, 81% of employees state that at least quarterly check ins with management are preferable. 74% of employees feel that they would be more effective workers if supplied with more consistent real time feedback on their performance.
When company goals and individual performance goals are evaluated at least quarterly, above average financial performance is 50% more likely to occur. As employee engagement levels increase, everything from employee absenteeism to quality defects is decreased by at least 25%.
2. Development
One difficult challenge of employee performance management is providing employee development opportunities consistently. However, employee development opportunities are crucial for top talent acquisition and long term retention.
Human resource professionals are well are of the high costs associated with recruiting, onboarding, and training new hire employees. Increasingly, human resources are discovering that they can groom leaders from within the organization.
Developing leaders from within an organization saves money and increases employee morale. When employees perceive that they will be recognized for achieving both company goals and individual performance goals, they will likely work harder towards accomplishing them.
Recruiting leaders from within the company affirms that they are much more likely than an external new hire to be a great company culture fit. This is due to the fact that the promoted employee has not only already had experience with the business but has also excelled within it.
As such, many human resource professionals are finding that employee development costs are well worth the long term investment and less than the costs associated with recruiting outside staff members.
3. Retention
Long term retention of high performing employees highly benefits businesses. Any human resource professional understands that high performing employees are a business's most invaluable asset.
Any human resource professional can also attest to the fact that successful talent acquisition can be expensive and labor intensive. Good performance in the workplace is not typically easy to find, develop, or maintain.
Proper employee performance management that includes consistent check ins and employee development opportunities increases retention levels. Employees notice when their human resource department and management professionals are invested in their individual performance growth and long term success.
A clear path to promotion supplemented with employee development opportunities is an effective performance management technique to retain top talent employees.
Key Takeaways
- Great performance management systems help human resources professionals with managing employees optimally.
- The 3 employee performance management best practices include engagement, development, and retention.
Must-Read Content
6 Focused Goals for Employee Experience Management
Understanding Employee Benefits Management
5 Reasons to Use Employee Management Software
