High-performing employees give the companies they work for a competitive advantage — and their extra effort differentiates great organizations from merely good ones. It’s crucial for businesses to have systems in place to identify, recognize, reward, and retain their best workers in order to achieve sustainable growth. Most companies understand this and spend massive sums of money acquiring a performance management system to help ensure their success. Yet wide variation in employee performance persists despite this investment. Here is why – what used to work doesn’t anymore, so managers need to:
1. Be real – communicate openly and often.
2. Set goals and inspire individuals to work to their potential.
3. Get out of the way – trust their teams and empower employees with accountability.
Performance management involves more than simply providing an annual review for each employee. It is about working together with that employee to identify strengths and weaknesses in their performance and how to help them be a more productive and effective worker.
How Can You Implement an Effective Performance Management System?
- Examine your current performance appraisal process. Look at what type of feedback you are providing to your employees. Are you setting goals?
- Explain the company goals. Performance management systems should be designed to get the employee excited organization’s goals by showing how they are part of it.
- Set expectations. As you sit down with each employee, clearly lay out your expectations for them.
- Acknowledge what they are already doing well. Use this to encourage them.
- Share some weaknesses that you have observed and how overcoming those would help their performance in the company.
- Identify specific things you would like them to accomplish over the next performance review cycle. Prioritize these so the employee knows which is most important and make sure to give them a deadline for each task.
- Monitor and develop their performance throughout the year. As employees begin to work on their performance, keep an eye on how they are doing. If they appear to be struggling to meet performance expectations, talk with them and see if you can offer any support or coaching.
- Evaluate their performance. Let the employee know how they are doing.
- Provide feedback on their performance. Be as specific as possible, noting key examples of when they demonstrated a certain quality.
- Talk about the consequences or rewards of their performance. Let them know if they are on probation, are getting a raise in pay, changes in vacation days, or any other relevant action.
- Discuss any problems they may be having. Listen to their concerns or worries as you talk through potential solutions.
- Set new performance expectations for the next year. Some items may be the same. However, since these are also based on organizational goals, you will need to re-examine your company or department goals for the upcoming year