Effective Strategies for Performance Management

This is the time of year that many companies are preparing for year-end performance reviews. Managing employee performance deals with an organization’s strategy, processes, and practices with respect to establishing performance expectations for its employees, along with measuring and monitoring the results.
Effective performance management is about leadership, interpersonal relationships, constructive feedback, and teamwork. Effective implementation of a good performance management program can help significantly improve a company’s overall business performance, increase employee engagement, and create alignment of goals at all levels of the organization. It is important to note all that falls under the umbrella of performance management:
  • Setting expectations for work performance and planning ways to meet these expectations
  • Monitoring employee performance with check-in meetings monthly or at least quarterly
  • Offering rewards and praise for good performance throughout the year
  • Proactively handle disciplinary issues by doing monthly or quarterly touch base meetings

Start out by trying these 3 Strategies:

1. Define and Communicate Company Goals and Performance Objectives

Your employees cannot meet your performance expectations or company goals if they are not clearly outlined. Sometimes employers are not as clear as they could be when outlining their overall company goals and objectives. When you are outlining goals and objectives, repeat the message often so that it sinks in, offer visuals (such as an office chart, detailed Powerpoint or email) so that employees have a reference, and most importantly, hold meetings to check in on progress throughout the year.

2. Offer Frequent Performance Feedback

Managers also need to check in with teams and employees periodically not only to gauge progress but also to provide feedback. Good performance feedback reinforces strong skill sets and positive behaviors while showing opportunity areas with a clear path for improvement. Timely performance feedback is the best way to affirm your employees and should be given in real time and integrated into company culture. Conducting focused touch base meetings quarterly or even monthly is a great way to reinforce good performance and proactively address poor performance. These meetings can be 15 minutes in length if everything is going well, they can be longer if there are performance issues.

3. Preemptive Management and Recognition

Preemptive Management is all about communicating with your employees and letting them know what is expected, what is not, and how to meet the goals that have been set. This means that your employees know what is expected of them and eliminates the guesswork. This is critical for new employees during their initial onboarding period in the first 90-100 days of employment. 

Rewards, or incentives, are also an effective way to show employees that you care, that you see their efforts and are pleased with their performance and that you want them to keep up the good work.

These meetings should have clear objectives including:

  • Discussing Praises and Areas that Need Work with the Team
  • Recognizing Those Team Members Actively Meeting their Goals and Objectives with Rewards or Incentives
  • Discussing Plans for The Next Phase of Projects
  • Discussing Company Data: Revenue, Customer Involvement, Marketing and Campaign Success, Etc.

These strategies for effective performance management can work wonders when embedded into your company’s culture. Consistent feedback and communication lead to higher engagement for managers and employees alike, while helping the company stay focused, meet goals, grow revenue and increase profitability.

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Small and medium-sized businesses may not have the time or expertise to implement the necessary people strategies for business success. The ideas above can be easily implemented by you to help improve the performance of your employees which leads to increased employee engagement and increasing the bottom line. We are here to help you with the people side of your business: employee engagement, retention programs, performance management, vision, and strategic plans, leadership development, selection & onboarding, compensations programs, organizational design, employee handbooks, core values, and all things HR-related.