EMPLOYEE PERFORMANCE MANAGEMENT

 

(Anon, n.d.)

WHAT IS EMPLOYEE PERFORMANCE MANAGEMENT

An organization's dynamic and strategic approach to assessing each employee's successes and preserving a high-performance culture is known as performance management. Performance management in practice refers to management's ongoing efforts to help staff members grow, set precise objectives, and provide regular feedback throughout the year. In terms of human resource management, it's crucial to have a system in place for hiring, training, and keeping people, as well as for evaluating their work.

Based on company culture and rules, performance management standards may differ from one organization to the next. But every company nevertheless adheres to a few standard characteristics. Behavioral characteristics, skill and competency levels, effectiveness, openness to learning, etc. are a few examples.

FACTORS THAT INFLUENCE EMPLOYEE PERFORMANCE

Many factors influence employee performance. A few common factors are as follows.

• Level of employee satisfaction and engagement
• Work culture
• Rewards and recognition
• Opportunity to learn new skills
• Training and upskilling strategies
• Knowledge of the organization’s objectives

HOW EMPLOYEE PERFORMANCE MANAGEMENT BENEFITS EMPLOYEES

Increased Satisfaction at Work

Employees will be motivated as a result of a consistent performance management process and employee recognition. When the company considers its employees’ physical and mental health, work stress will be reduced. A stress-free work environment will definitely increase the employees’ happiness.

Enhances Efficiency

One-on-one conversations between employees and supervisors are made possible by a successful performance management procedure. Employees that use it can better understand their areas for improvement.

Alignment with Organizational Goals

By establishing a proper performance management strategy, an organization is able to convey to employees its key responsibility areas and key performance indicators. Employees can thus assess their performance themselves and work better to fulfill their responsibilities.

Better Opportunities for Growth and Promotion

The results of regular performance reviews enable management to identify employees' strong and weak areas, which will encourage employees and provide opportunities for growth and promotion.

HOW EMPLOYEE PERFORMANCE MANAGEMENT BENEFITS EMPLOYERS

A proper performance management strategy enables an organization to benefit in the following ways:

Highlights Areas of Improvement

A frequent performance management review allows a company to pinpoint areas where specific employees need to improve. Accordingly, the organization can design its training and educational initiatives.

Keep Employee Engaged & Motivated

Employees feel valued by the good performance management system. Appreciating employees' contributions keeps them in high spirits and motivated, and as a result, productivity will increase.

Enables Succession Planning

Through a performance management review, an organization can identify the best-performing employees and their caliber. An organization can execute its succession planning strategy by creating a pool of high-performing employees.

Retaining Talent

A proper performance management system allows employees to have face-to-face discussions with managers. Managers are able to give solutions to employees’ problems and provide training and ideas to improve their talents. This will help increase employee retention in the organization.

BEST EMPLOYEE PERFORMANCE MANAGEMENT PRACTICES

We can identify a list of best practices for a good performance management system in an organization. A few of them are listed as follows:

Give Feedback on a Regular Basis

Your performance review process will be strengthened if you provide the relevant comments at the appropriate time. As a result, you should make it a point to periodically examine and discuss the work of your staff, offer input, and have those inputs put into practice. At the same time, encourage staff to provide suggestions for improvements to the present performance management plan, examine them all, and then put the ones you think will help into practice.

Communicate KRAs at the Start of the Appraisal Process

Knowing the key responsibility areas of every employee sets a better platform for an effective performance management process. Understanding KRAs helps employees clearly see what to do. Additionally, it promotes a creative culture, increases trust on several levels, and increases productivity and autonomy.

Acknowledge and Reward Good Performers

When their efforts are recognized, employees feel they have a purpose in the business. To strengthen a sense of belonging and purpose in high-performing personnel, it is crucial to recognize and reward them.

Use Right Performance Management Tools

Using the right tools helps the performance management process be an excellence-oriented one. Make sure the solution you choose enables you to estimate future demand for succession planning as well as improve resource allocation and usage.

Establish Learning and Development for Upskilling

Old technologies are occasionally replaced by new ones as they flood the market. A dynamic learning and development program is required by this trend for both experienced workers and new hires. Create a learning and development roadmap for upskilling in your company that is appropriate for resources at all levels of hierarchy.

REFERENCES

Employsure AU. (n.d.). Performance Management Process & System | Employsure. [online] Available at: https://employsure.com.au/guides/employee-performance-management/managing-employee-performance/.

Software, S. (2021). What is Employee Performance Management and Why It is Important. [online] Resources Library. Available at: https://www.saviom.com/blog/what-is-employee-performance-management-and-why-it-is-important/.

Tardi, C. (2022). Performance Management—We Explain This Corporate Tool. [online] Investopedia. Available at: https://www.investopedia.com/terms/p/performance-management.asp.

Valamis (2020). Performance Management. [online] Valamis. Available at: https://www.valamis.com/hub/performance-management.

Thanks for reading
Chamara Perera