With the rise of remote work, some employers are rethinking their performance management strategies. After all, if employees are working from home, how can you effectively manage and monitor their performance?
While there is no blanket answer to this question, most experts recommend conducting performance evaluations annually. However, some companies choose to do them more frequently (e.g., every six months), while others do them less often (e.g., every two years). The frequency with which you conduct performance evaluations depends on any number of factors, such as your company size, industry, and budget.
The Importance of Performance Management
As a business owner, you know happy employees lead to a thriving organization. Happy employees are more engaged, show higher conversion rates, and are less likely to leave the company. Performance management is one way to ensure employees are happy in their roles.
Through performance management, you can identify areas where an employee might need improvement. You can also provide feedback that will help employees understand what they’re doing well and how they can continue to excel in their roles. Additionally, performance management can help identify any training or development opportunities an employee might need.
When done effectively, performance management should be a positive experience for both employees and employers, regardless of the feedback. Employees should feel like their voices are being heard and that their contributions are valued. Employers should feel confident they are getting the most out of their employees and that their company is moving in the right direction.
But there is a downside. According to the 2019 Workhuman Analytics & Research study, 53% of workers feel their “reviews are not indicative of all the work they do”. Meanwhile, 51% of workers report their last anniversary went unacknowledged!
Who Is Responsible For Performance Management?
In most cases, the responsibility for performance management rests with the managers or supervisors of individual departments. They are typically responsible for setting goals and expectations, measuring progress, and providing feedback to employees. In some cases, human resources may also be involved in the performance management process. Employees can also play a role in the performance management process by setting their own goals and being proactive about their development.
Effective, Value-Driven Management
The goal of performance management is to help employees become more engaged and productive in their roles. But how can you ensure your performance management system meets this goal effectively?
Here are a few tips:
Set clear expectations from the start.
From the very beginning, it’s important to set clear expectations for employees. This way, they will know what’s expected of them from day one. Employers should provide employees with a detailed job description that outlines their responsibilities, duties, and goals, so everyone is on the same page.
Conduct regular check-ins.
In addition to setting clear expectations, employers should also conduct regular check-ins with employees. These check-ins provide an opportunity for employers to give feedback and ensure employees meet the expectations that have been set. They also give employees the chance to ask questions, voice concerns, and provide input on their roles.
Provide meaningful feedback.
This means giving employees specific examples of what they’re doing well and where they can improve. It’s also important to avoid using generalities or making assumptions about an employee’s ability to do their job.
Establish SMART goals.
When setting goals, it’s important to make sure they are specific, measurable, attainable, relevant, and time-bound (SMART). Tangible goals are more likely to be met than goals that are vague or open-ended.
Encourage open communication.
Finally, throughout the performance management process, it’s important to encourage open communication between employers and employees. This way, employees will feel comfortable coming to their employer with any questions or concerns they might have. Additionally, employers should be open to hearing feedback from employees about the performance management process itself.
The Different Types of Performance Management
There are several different types of performance management, each with its own benefits and drawbacks. The type of performance management you choose should be based on your company’s specific needs and goals. Some of the most common types of performance management include:
360-degree Feedback
Here, employees receive feedback from their peers, subordinates, and supervisors. This feedback is then used to help employees improve their performance.
Appraisals
This is another common type of performance management in which employers assess an employee’s job performance over a period of time. Appraisals typically include a review of an employee’s work history, job performance, and goals.
Self-Evaluation
This tool places the employee in the driver’s seat by allowing them to assess their own job performance. This type of performance management can be used in conjunction with other types of performance management, such as 360-degree feedback or appraisals.
Competency-Based Management
This type of performance management focuses on an employee’s ability to perform specific tasks or job duties. It’s often used in conjunction with training and development programs.
No matter what industry you’re in or how many employees you have, performance management is essential to running a successful business. By taking the time to establish clear expectations, provide regular feedback, and give employees the resources they need to succeed, you can help your business reach new levels of success!
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