Performance management matters. In a 2017 study by Deloitte, 79% of executives rated it as a high priority. It’s also important to employees. Performance management and the feedback it provides enables professionals to focus on the skills they need to perform at the highest level possible.
Performance management is an inescapable part of modern business. From professional development to succession planning and the business’s bottom line—tracking and gauging employee performance offers many benefits that support retention and job satisfaction.
Goal setting provides a clear outline of what managers expect from an employee, their role and responsibilities and the steps they can take to achieve their targets.
When goal setting is based on the overall company’s goals, it can help provide context to individual employees—helping them understand where they fit in the organization.
Employees with clearly defined goals are shown to have improved focus, engagement and productivity.
Goal setting makes it easy for departments to align their goals, as well as those of team members, with the overarching goals of the company.
Metrics and Analytics
Using an HRIS, you can track metrics and analytics connected to your employee’s performance.
Data is important when it comes to establishing how well an employee is doing because it provides an objective view of performance. Metrics aren’t based on bias or opinions.
There are a variety of metrics that can be analyzed, and each department within your company will vary in which ones they focus on. Some metrics to consider include:
- Attendance—absenteeism has a major impact on productivity and performance. When you evaluate an employee’s attendance record you’ll want to consider what extenuating circumstances may be causing poor attendance, including lack of engagement or a clearly defined role.
- Error frequency—is an employee consistently making the same mistakes? If so, why is this happening? How can management help an employee to reduce errors?
- Project completion rates—tracking how many projects an employee is assigned and their completion record can help identify if an employee is being over, or under worked. It can also determine how long they’re taking to complete specific tasks and help you determine if there may be an issue of presenteeism.
Management and Coaching
Performance management doesn’t just matter to employees, it also provides an opportunity for better management and coaching from team and department leaders.
When you track employee performance, it’s easier to identify problem areas. Performance management can highlight areas where an employee may be lacking in the appropriate knowledge or skill required to succeed. Management can use this knowledge to create training programs that target these gaps.
Providing professional development that can help improve your employees skills will not only support a teams success, it will boost employee engagement and confidence in their role.
The Goal is Increased Performance
When performance management is used properly, it can elevate performance by increasing productivity, knowledge, and employee confidence and satisfaction.
In business, we often talk about team work—going as far at times to equate our employees to family. Yet, many companies continue to fail at supporting employee performance through improved management.
Creating defined performance management ensures this doesn’t happen.