Did you know that 58% of companies report that their performance management system is not an effective us of their time? Not an encouraging number.
Unfortunately, many organizations see performance management, and an annual performance review as one in the same.
Performance management revolves around employee performance, and should be ongoing. Every employee should have a clear understanding of how they can be improving and performing better in their role - This is easier said than done. It takes strategy and organization to manage employee performance effectively.
If your company is making any of the following performance management mistakes, you might want to rethink your process:
With performance management - its important to think 'big picture'.
Building a performance management strategy with your organization’s goals at the core is key.
Not only will individual employees be helping the company achieve it’s most pressing goals (growth, higher revenue, etc.) but your team will take pride in the fact that their work has purpose, and that they are making a tangible contribution – a true win-win.
When looking for a new job, career development always tops the list of what candidates look for in a new role. It’s also one of the top reasons employees quit their jobs.
The most crucial part of an effective performance management system is enlightening an employee of where they have room to grow in their role. Your team should leave their reviews feeling motivated, and with purpose – not low or discouraged because you only pointed out areas of weakness.
Unfortunately, managers oftentimes give ‘scores’, maybe on a 1-5 scale, that are quite arbitrary – Avoid this!
Every employee should have clear metrics that they strive for. What are their KPIs? What makes them successful in a role or not? While some things can be more
difficult to quantify, every team member should have some type of ‘benchmark’ they
are looking to hit.
As well, make sure you are giving clear
It’s a common, but poor practice for managers to delay performance discussions. Instead of putting it off, schedule a time for a dialogue and stick with it. Committing to a time indicates to your team that it’s of importance.
Experts agree that a one-on-one dialogue is the best tool for performance management – and what makes those dialogues successful is their regularity. In short, the annual performance review is dead.
Interested in extra tips to help you solidify your performance management strategy? Check out one of our free resources below!