| || |
With a potential recession on the horizon, we know you want resources to help your business master the moment. We've put together our Agility & Excellence Resource Center to bring you strategies and solutions with a finger on the pulse of what's ahead.
Well-executed performance management is helping many businesses retain top talent and maximize their resources, allowing companies to stay competitive in today’s uncertain economic landscape. In addition, effective performance management programs have fostered highly collaborative work environments that enable employees to reach their full potential while bolstering business growth.
If your company is looking for ways to stay strong for the long haul, it may be time to explore best practices for managing the ever-changing workforce.
What is Performance Management?
Over the years, employers have realized that employee performance management isn’t a static activity restricted to annual reviews. Instead, it’s an ongoing dialogue between supervisors and employees, creating an environment conducive to success — a win-win situation that pays dividends in productivity.
It allows regular feedback to be given to employees, helping them understand how their work contributes to the organization’s success. Additionally, it provides a platform for employers and employees to discuss career progress and development plans, maximizing employee engagement and satisfaction. But it all starts with performance planning and requires managers to be trained in effective coaching, counseling and evaluation techniques.
Why is Performance Planning Important?
Performance planning helps an employee chart their course to success. It aligns the individual’s knowledge, skills and motivation with the company’s long-term goals, identifying each individual’s role in achieving key objectives and ensuring progress over the next year and beyond. This helps keep employees and managers on the same page by clearly delineating what needs to be accomplished. As a result, it increases quality and efficiency and can prevent costly problems by ensuring that required resources are available.
Should Companies Still Conduct Yearly Performance Reviews?
Many companies are giving up the annual performance review, especially as more Millennials enter the workforce. Unlike previous generations, they’re accustomed to instant feedback, which makes frequent check-ins extremely valuable. But that doesn’t mean companies should ditch their annual evaluations. After all, the yearly review allows managers to track progress and determine whether an employee is meeting or exceeding their objectives. It’s also a perfect time to set near- and long-term goals and identify development opportunities. But, before making any changes to an existing program, evaluate the current process and determine your organization’s needs. Then, identify areas for improvement and even consider surveying employees about their feedback preferences.
Performance management helps organizations ensure all employees work toward the same goals, creating a culture of excellence, collaboration and productivity. As a result, managers and staff work together to reach common goals, helping to ensure that the organization is maximizing its potential.