As a business owner or manager, performance management is a term which you are probably familiar with. Although the phrase is widely used in the business world, there are a lot of misconceptions about exactly what performance management is, and how to do it effectively.
Here is a brief guide to the process of performance management, and how a good performance review can benefit both your employees and your business.
Performance management involves monitoring an employee’s performance against a pre-defined set of goals or behaviours. Feedback can be provided in the form of formal reviews, and also more informal discussion on a regular basis.
Why is performance management important?
If you want your team to work effectively, everyone needs to be aware of their role and receive regular feedback on what they are doing well, and what they can improve on.
Performance management should be a proactive process that you undertake on an ongoing basis with your employees, rather than be just a reactive way of dealing with inappropriate attitudes or behaviours in the workplace.
What are the benefits of performance management for the employer?
Regularly undertaking performance management strategies can help ensure everyone knows what their role is within the team, and the organisation itself, and that the business as a whole is working as effectively as possible. Monitoring performance and providing feedback can also help you identify and deal with potential issues before they become major problems.
Although performance management is about individual employees, every staff member is part of a larger team. For your team to run effectively, every person in your business needs to be working towards the same goals. Conducting regular performance management can help achieve this.
Regularly undertaking performance management can also help employees feel more valued, which can make it easier to retain staff. Losing valuable employees can be detrimental to your business. Ensuring that every team member knows their role and receives regular advice and guidance as to how they can better meet expectations can help your staff develop in their role, and maintain their loyalty to your business.
What are the benefits of performance management for staff?
Having a clearly defined role and receiving regular feedback can help your employees grow and develop their skills. Demonstrating that you are paying attention to your staff helps them feel more valued and rewarded for their efforts, which can lead to a higher level of job satisfaction and lower levels of stress.
If undertaken well, a performance review can be an opportunity for employees to discuss their concerns, as well as receive feedback. Making sure that staff members are clear on the parameters of their role, and what their expectations are, makes it easier for them to do their job, and reduces any potential misunderstandings that might affect their performance.
Regular performance management activities have many benefits for both employees and employers. Your staff members are your best assets, and by demonstrating that you are prepared to invest time and effort into helping them achieve their full potential, you can benefit both individual team members and your business as a whole.