Performance Management: Time to stop the process outshining the purpose

Performance Management: Time to stop the process outshining the purpose

At a time when companies doing away with performance management are getting a lot of media attention, a number of fresh ideas have emerged. The challenge for companies attempting to change performance management is a need to move past a dialogue centred on the process. “To rate or not to rate” or “how often” are questions perhaps better addressed when companies have answered one fundamental question: What is the point of performance management?

  1. Focus dialogue: Establish the right goals first, then talk about development

In high-performing organizations, where there is an instinctive knowledge of what good performance looks like and goals are well defined, then dialogue is of the most value when it focuses on the future and how the employee fits into that vision.

  1. Reallocate time: Reduce year-end focus in favor of ongoing engagement

The opportunity for organizations lies in engaging employees, including painting a picture of   how employees fit into the broader organization and describing long-term career paths. This needs to done on an ongoing basis rather than in a year-end appraisal format.

  1. Keep score: Measure the effectiveness of your performance management strategy

Effective upward feedback and measurement generally requires an organizational culture that is comfortable with transparency and openness. Developing a feedback-rich culture entails establishing a robust 360-feedback system.

  1. Reward strong leaders: Provide higher base pay for consistently strong people managers

Examining base pay positioning for employees and critical jobs over time can help an organization be prudent and targeted with limited compensation budgets. Although uncommon in the marketplace, substantially rewarding strong people management, and integrating it into the employee value proposition, can help organizations differentiate themselves. 

  • How to define the purpose of performance management?
  • How to truly understand employee performance?
  • What is the right process to inspire performance in your company?
  • What are progressive companies doing in the context?


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