There’s no one-size-fits-all approach to managing employee performance. There are so many methods your organization can use and a variety of ways to measure success. That’s why establishing a solid performance management framework is essential. It allows you to evaluate employee performance while remaining fair and providing valuable feedback.
Great performance management doesn’t begin and end with an annual performance review. In fact, 55% of workers say annual reviews do not improve their performance. Luckily, we know what employees want in regards to feedback and opportunities at work. Take those wants into consideration to build a powerful, effective performance management framework.
In today’s post, we’re taking a look at some important elements of performance management. Apply these to your processes to create structure and boost employee performance. We’ll also talk about a few signs of an ineffective performance management system.@ClearCompany says it's important to invest in a solid #PerformanceManagement strategy that retains your best employees and encourages continuous growth:
Setting a goal is the first step toward accomplishing just about anything. They set performance expectations, provide clear direction, and serve as benchmarks for measuring performance. Research shows that setting more difficult goals can even motivate employees to work harder. Regularly setting and achieving goals is a top indicator of employees’ success in their roles.
There has been extensive research into the benefits of setting goals, most notably the goal-setting theory of motivation. Developed in the 1960s, this theory makes the case for the effectiveness of setting goals:
- Clear, achievable goals are a central source of motivation at work.
- Specific goals with a deadline lead to better performance and productivity.
- Challenging yet realistic goals are motivating and rewarding when achieved.
- Feedback is necessary to achieve goals and improve performance.
- Employees’ participation in goal-setting contributes to greater engagement.
Give Regular Feedback
We point to this fact often because it’s important: 96% of employees want more feedback. Your employees want to know how they’re performing and what they can do to improve. Millennials tend to want feedback on a weekly basis. That’s a good practice to implement since 43% of highly engaged employees are receiving weekly feedback. Feedback also enables employees to confidently work toward their goals.
The benefits of giving constructive feedback are numerous, and so are the benefits of receiving feedback from employees. Employees are nearly 5 times more likely to feel they can do their best work if they feel their voices are heard. 58% of employees want their employers to ask for feedback via employee engagement surveys more often. All signs point to frequent feedback enabling better performance and greater engagement, and as a result, increased productivity.
Conduct Regular Performance Reviews
Employee evaluations are not the sole solution to managing performance, but a regular review process is important nonetheless. Annual reviews, however, are now largely unpopular, and your organization might find more success with quarterly or mid-year performance reviews. There are many other types of reviews you can use to create a holistic view of performance:
- New Hire Reviews (30-, 60-, or 90-Day Reviews)
- Competency and Roles-Based Reviews
- Time-Based Reviews
- Peer and 360 Reviews
It may seem daunting to add so many reviews to your performance management framework. Fortunately, performance management software simplifies the creation, distribution, analysis, and recordkeeping of all review types.
Offer Employee Development Opportunities
The benefits of developing your employees are numerous — to individuals and to the entire business. Professional development is a top consideration for 61% of job seekers, while a lack of opportunity is a top reason people leave their jobs. Prioritizing employee development also leads to 34% higher retention rates and 15% higher engagement rates.
Putting employee development first proves to your employees that they are valued. Its effect on engagement and retention is especially important when it comes to retaining high-performing employees. Those employees tend to become disengaged and look for a new position if they lack growth opportunities.
The concept of saying “thank you” and acknowledging employees’ achievements seems simple but has a big impact. It motivates employees: 70% say that recognition would improve their morale and motivation at work. Organizations that center recognition are 2.5 times more likely to see increases in employee engagement. And when employees are engaged, they are 87% less likely to leave their jobs.
Build employee recognition into your performance management framework by making it easy for employees to celebrate each other. Performance management software does just that with tools like Shout Outs and Celebrations. These tools allow employees to publicly recognize their coworkers for a job well done and congratulate them on reaching milestones. Then, you can reference the recognition notes during performance reviews to reinforce achievements.Employees want #feedback, and the best way to do that is by incorporating it into your overall #PerformanceManagement framework. See what you should be doing to cultivate a strong team and retain your best talent in @ClearCompany’s latest blog:
What Does Ineffective Performance Management Look Like?
As mentioned at the beginning of this post, performance management is not confined to annual reviews. It’s an all-encompassing phrase referring to how you support, evaluate, and communicate with employees about their work. It includes accomplishing tasks and completing projects, developing and growing skills, and giving and receiving feedback. An effective performance management system is ongoing throughout the employee lifecycle.
So what does ineffective performance management look like? If you’re evaluating your company’s performance management strategy, look out for these signs that it needs work:
- No performance review cycle
- Different performance appraisal standards across departments
- No goal-setting or goal tracking
- No employee performance records
- No opportunities for professional development or training
- Not giving or receiving feedback, or rarely doing so
- No recognition for great performance
- No analysis of performance trends
ClearCompany has the tools your organization needs to establish or strengthen its performance management framework. Our Performance Management tools facilitate regular review cycles of many types including Peer Reviews and 30-, 60-, and 90-Day Reviews. ClearCompany offers tailored solutions for employee recognition and feedback surveys. Set, align, and track employee goals, and analyze performance trends with powerful reporting and analytics tools.
Do all this and more with ClearCompany’s Performance Management platform. See for yourself — sign up for a demo with ClearCompany experts today.