According to Bersin,
“organizations that have employees revise or review their goals quarterly or
more frequently are 45% more likely to have above-average financial performance
and 64% more likely to be effective at holding costs at or below the level of competitors.”[1] If
that statistic alone is not enough to persuade your management team that it’s
time for a performance management strategy redesign, than here’s more.
Performance management
comprises all activities that ensure business goals are met. Building a
high-performance culture has become more challenging because of geographically
dispersed teams, matrix structures, and changing workforce demographics.
Nowadays, businesses need to be more strategic and forward-thinking if they
want to build a top-performing workforce, engage employees, and compete with
the biggest players in their industry.
The business world is
changing, so performance management needs to change, too. Businesses need to
move towards effective performance management including goal setting, managing,
coaching, development planning, and recognizing, not only be successful, but
also to survive.
Here are eight performance
management initiatives you need to consider to make your workforce soar!
1. Abandon
annual performance reviews
Agreed upon goals and
progress should be easily accessible and visible throughout the entire work
year. Sure, this process can be time-consuming, but with the help of the right
technology solution, ongoing performance assessments can become a second
nature.
2. Align
cross-functional departments on strategic business goals
Managers need to develop
departmental goals that align with the strategic goals and show employees how
their individual goals link to both the departmental and company goals.
3. Provide
consistent and meaningful feedback to improve employee engagement
With the help of a
performance management system, managers can more easily and readily communicate
business and departmental goals with their employees, directly contributing to
employee engagement.
4. Improve
goal communications between managers and employees
Having a structured
process that includes setting and tracking goals, enabling coaching and
measuring results helps managers and employees are more effective when done on
a daily basis rather than annually.
5. Monitor
goal progress, completion and alignment with access to KPIs and analytics
Reporting tools can help
organizations achieve effective performance management by assisting the
workforce in tracking the number of employees who have goals in place, the
percentage of goals that are aligned to the corporate strategy, goal priority,
and goal progress.
6. Use
an integrated talent management platform
Although many
organizations know that integrating talent management processes is necessary,
it has always been difficult to achieve. Technology solutions today have made
it much easier.
7. Use
a flexible performance management system that is built to adapt to the entire
workforce
Different leadership methods should be used depending on both an
employee’s personality and the level of direction and support he or she needs
on a given project. Having a history of this information could help managers be
more effective when giving feedback.
8. Build
a sustainable workforce: the balance between employee performance, potential
and risk
While effective
performance management identifies how employees are performing in their active
role, it does not consider if they are in their right role or
if they are a flight risk. To make the right strategic decisions about your
talent and build a sustainable workforce, performance, potential, and risk of
loss should all play equal roles in the evaluation process.
Forward-thinking HR
departments are putting their people first by building a workplace that uses
the right combination of formal and informal performance management techniques
to close the gaps between strategy and execution. Through the implementation of
these key strategies, a clear performance management process can be adopted
across the organization. The workforce will receive the support they need to
improve skills and complete milestones in order to achieve their personal and
professional goals. The end result will be more productive, engaged employees,
and a more effective, high-performing organization that meets and exceeds
business objectives.
Learn
more about performance management and the solutions available at Nakisa to help
support your goals & performance strategies. Download
the whitepaper today or watch the
webinar!
