Eight effective performance management strategies

How performance management can help solve common issues in the workplace

Eight effective performance management strategies

Every smart leader and HR manager knows how important it is to be able to adapt and manage diversely talented employees. Being able to stay on top of performance management helps the organization reach its goals quicker and more efficiently.

Below is a list of practical ways for leaders and managers to improve their performance management skills. But first...

Why performance management is important

Performance management is a corporate management tool that helps managers monitor and evaluate employees’ performance and output. According to UC Berkeley, it is an ongoing process of communication between a supervisor and employee where they discuss setting objectives, identifying goals, clarifying expectations, providing feedback, and reviewing results in a bid to accomplish the goals and objectives of the company. 

Performance management can help solve common issues in the workplace aside from improving the performance of employees. For one, it deepens the engagement among the workforce, addressing the lack of communication and connection between co-workers. With a majority of employees working remotely since the COVID-19 pandemic, it has been a challenge to connect and strengthen work relationships between fellow employees, supervisors, and employers. Performance management encourages leaders and employers to be transparent and actively listen to employees who are then more prone to be more communicative and honest. 

From there, the quality of KPI data, conversation, and feedback value increase as well. As employees are more trusting and open to talking to employers and managers, the information they provide is more accurate and honest. This helps the company plan and strategize more effectively. 

The performance management process also increases employee retention and lowers turnover rates. Through the performance management process, employees are being rewarded and recognized for their hard work and perseverance to improve their performance. This makes them feel appreciated and important, which leads to them being happy and satisfied with staying with the company, lessening turnover rates.

Read more: HR’s three biggest performance management mistakes

8 effective performance strategies that work

There are many ways for companies to improve the way they conduct performance management within the workforce. Here are some eight simple yet effective strategies:

  1. Communicate company goals and performance expectations

Communication is key in performance management as the process requires both employees and managers to exchange information. It is also important to communicate the goals of the company and the result they expect from the employee to help achieve those goals.

Make employees aware of the plans to improve and maintain top performance, and the steps required to ensure they align with the company’s goals. This allows them to adjust their expectations and integrate their personal goals into the action plan.

  1. Review and update KPIs if needed

KPIs, or key performance indicators, are a great tool to help measure and see whether the employee is performing well in their role. However, with all the changes and shifts made internally and externally that affect the work of employees, it is important for employers to review and update KPIs if needed regularly. Regularly reviewing KPIs helps employers see whether the measurements are still aligned and effective and allows employers to make the necessary changes.

Employers should understand that KPIs need to fit the role and circumstances of each employee. For example, a KPI for an on-site employee may not work for a remote employee from a different department.

  1. Have regular check-ins and constant feedback

It is essential for employers to have regular, scheduled check-ins with employees to discuss the progress and challenges they face with their work and performance. In addition, it is important to hold these discussions with the employee, so they know when they are doing well and which parts need improvement.

It is also a great way for leaders and managers to get feedback from employees on how they are managing them. This helps managers improve their management skills and how to approach each employee based on their feedback and how they react to the performance management strategy.

  1. Offer trainings for career development

Part of performance management is making sure employees are equipped with the necessary updated skillsets and knowledge. A great way to achieve that is by offering educational tools such as training seminars and workshops to enhance both their soft and hard skills. This ensures employees’ performances are actively being improved for efficient, high-quality output.

It is also advisable for employers to offer career opportunities for all employees who are interested in a career shift or a promotion. Providing growth opportunities shows employees that the company cares about their future, wants to grow alongside its workforce, and is willing to invest in employees to help them reach personal goals.

  1. Recognize exceptional employees

According to employee recognition and engagement platform Achievers’ 2021 Engagement and Retention report, 34% of employees do not feel valued by superiors at work, and employee recognition was listed as one of the main reasons to stay at a company.

Considering this, companies need to start recognizing employees for their work and effort. For example, giving exceptional employees a shout-out for their work during a small or big meeting, through email, or even during a lunch out can significantly boost the employee’s morale and happiness with the company. Other ways to show appreciation for employees is by offering a small token of appreciation, a small bonus, and even offering a promotion if possible. These rewards and recognition can help employees who need that extra push to reach their goals.

  1. Help poor performers turn around their performance

It is not impossible to have an employee who continues to underperform even with all the different performance management systems being applied. However, when faced with a consistent underperforming employee, companies should discuss and address the main issue at once.

A surface problem may be caused by an underlying issue that is not being resolved through performance management. Getting the employee to understand the urgency to improve is essential to achieve positive results in performance. Setting clear goals, exchanging constructive feedback, and recognizing achievements together can help the employer and employee slowly enhance their performance and the quality of work they create.

  1. Let your employees be involved in the process

Employees are the main benefactor in performance management. Therefore, there is no question that companies need to include employees in every step and decision made in the program. This way, employees agree to take certain actions to show results of performance improvement.

It is also important to give them the opportunity to voice out any concerns or solutions they have in mind. Knowing what they feel comfortable with can help make performance management easier and more efficient on both parties.

Read more: Performance management: How to do it right

  1. Trust your employees

Employers need to trust their employees, especially when it comes to performance management. During the program, employers can only do so much to help employees as it is up to them to make the effort to change.

Throughout it all, employers and managers should understand that employees are not robots and should be understanding of their circumstance. Constant communication is key to supporting them throughout the program.

Recent articles & video

Firm, officials fined nearly $100,000 for flouting Hong Kong's wage rules

Firm targeted by HK$200-million deepfake incident in Hong Kong revealed: reports

What are the top people risks for employers?

Employers urge Biden to grant long-term immigrants work permits

Most Read Articles

Former DEI exec gets 5 years in prison for defrauding Facebook, Nike

Hong Kong firm, director fined $120,000 for wage-related breach

Freeze on foreign worker entry to be maintained in Malaysia: reports