Over the last few years, performance management has become more agile, with many organizations moving away from the traditional approach of annual appraisals.
The benefits of performance management are more important than ever after a year of disruption and adjustment due to the pandemic. Take a closer look at these key benefits and how they can benefit your employees and your business operations as a whole.
Continuous, effective performance management helps foster an open dialogue between employees, management and the company as a whole. This increases trust and ensures everyone feels better supported and more engaged. Without this, employees are more likely to feel detached from their work and its role within the organisation, which is very likely to result in a higher rate of staff turnover.
What is performance management?
Essentially, performance management is the process by which organizations engage with their employees to evaluate their contributions and efforts. An employee performance review is a way of assessing strengths and identifying weaknesses- but more importantly, finding ways to work on these areas so employees can grow and develop. The right performance management approach can help managers get the most out of their teams and allow each employee to thrive at work. These outcomes lead to a happier and more productive workplace.
The traditional model of performance management would be to hold an annual appraisal, where an employee and their manager would discuss their performance. Since they were developed in the 1970s, much has changed, and companies are gradually moving away from them to manage performance in a more constructive and continuous way.
Agile performance management might include the following characteristics:
- Catch-ups every week or every month
- Feedback on a regular basis
- Setting goals and reviewing progress continuously
- Identifying learning and development opportunities
Why is performance management important?
The key to getting the most out of your employees is performance management. According to a common statement in the business world, your people are your most valuable asset. Your business cannot reach its full potential without motivated and engaged employees. If you invest time and management into the careers of your employees, both of you will benefit.
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