Incorporate these performance management strategies and your organisation is sure to flourish
If you are in HR, you are well aware of the fact that ours is a constantly evolving field. The flexibility of our work is what makes it so effective, but it also means that we always need to be on the ball. It’s vital that we keep an eye out for emerging performance management trends, while researching efficient tools to streamline existing processes and improve productivity levels.
With that in mind, at Clear Review we have spent some time researching the best performance management tools used by modern organisations. If you incorporate and properly utilise all the tools mentioned below, the result will be a happier, more efficient and more engaged business.
1. One-on-one performance check-ins
If you want to follow in the footsteps of corporate giant Adobe, who reduced their voluntary turnover by 30%, you should look at introducing one-on-one performance check-ins. This trend is taking over, with other companies such as IBM, Google, Cargill, HarperCollins, IBM and ITV incorporating the tool.
Regular performance discussions throughout the year improve relationships between managers and employees, while building employee engagement levels and boosting productivity. In contrast, the traditional approach to performance management has been shown to be a serious waste of time and money. We predict that in a few years’ time, reliance on a single annual appraisal will be a thing of the past.
2. Aligned SMART objectives
The importance of setting clear, straightforward employee goals is not disputed. It is essential for employees to create for themselves realistic but stretching goals that will keep them motivated and enthusiastic about the work they’re doing for your company.
On top of this, employee goals need to be upwardly aligned to company objectives. Using a simple upwards aligning process, as recommended by management experts The Corporate Executive Board, unites everyone within the company and ensures you are all pushing in the same direction.
3. Real-time feedback
Fair and accurate feedback is critical to great performance. In fact, studies have shown that it can increase rates of performance by a staggering 39%. However, it isn’t simply the nature of the feedback that matters — timeliness is also an important factor. We now know that feedback is more efficient when it is given as soon as possible. Unfortunately, all too often, feedback isn’t shared for weeks, or even months.
Real-time feedback has been associated with a number of benefits, including increased retention, improved recruitment, better performance and an increased ability to handle change. Thankfully, real-time feedback is achievable these days, with the advent of tablets, laptops and smartphones. Using performance management software, feedback can be given by peers and managers at any time.
4. Personal Development Plans (PDPs)
How much time and effort does your company spend on developing PDPs? According to research, personal development is a key driver of employee performance and engagement. In fact, 87% of millennials state development opportunities are a critical component of what attracts them to a particular company. To attract and retain the best of the best, the PDP is a tool you will want to incorporate into your business.
PDPs aren’t a performance management tool you should simply pay lip service to, and then neglect for another year. Instead, manager and employee should create SMART PDPs that can be updated and reviewed online throughout the year. By encouraging this in their employees, companies benefit from a workforce who possess a sense of direction and focus in relation to their careers.
5. Reward and recognition schemes
No employee works just for a paycheck. In fact, it has been shown that 80% of employees work harder when they feel appreciated. Another source shows that 43% of employees would feel more motivated by appreciation than money. Finally, a further source states that recognition can improve team culture and reduce turnover. If you are looking to engage your employees and inspire excellent performance, look into designing and implementing a reward and recognition scheme. Remember, even if you’re a startup, there are inexpensive but efficient ways of rewarding your team.
Experience our hassle-free performance management software
At Clear Review, we provide modern performance management software to companies all over the world. To see how we can help you and your business, book a personal demo of our performance appraisal software today.