Top 5 Reasons Firms Need to Move from Measuring Performance to Ensuring Performance
The COVID-19 crisis has underscored the importance of an effective performance management system as companies shift towards aligning employees' performances with the achievement of tangible business outcomes
Performance management is a complex process that is in a state of constant flux. Every year, new metrics of performance management emerge. It is common for managers to feel frustrated with the poor performance of employees and the employees to get demotivated, disengaged and deflated owing to the lack of motivation and the life-long learning culture in organizations.
The COVID-19 crisis has underscored the importance of an effective performance management system as companies shift towards aligning employees' performances with the achievement of tangible business outcomes. Realizing the significance of a robust performance management system is the first critical step towards enhancing the existing performance evaluation mechanism.
But it is necessary to know that performance management is a constant process and not a once-in-year job. So, quality performance management integrates all activities to create an ongoing cycle of performance management.
Here are five ways how performance management helps organizations and why firms need to adopt performance management software more than ever before.
Allows Exchange of Feedback
The importance of feedback in ensuring effective performance management cannot be over-emphasized. Every employee looks for regular feedback regarding their performances and their potential areas for improvement. Similarly, the company should allow employees to offer feedback regarding the business and the management that facilitates a transparent, ethical and open-door communication culture.
Helps to Boost Productivity and Employee Engagement
Several studies have highlighted the role of employee engagement in encouraging productivity and retention of employees. Activities such as annual offsite, get-together, month-end parties allow both employers and employees to connect on a common platform and build rapport between them. Hence companies need to accelerate their employee engagement effortsto maximize the ROI.
Performance management software plays an important role here. But do you know how to use it? If not, then here comes the guide. Performance management software helps to create an ecosystem of transparency, trust, and motivation along with buildinga healthy relationship between companies and their employees.
Encourages Employee Reward and Recognition
Rewarding and recognizing the employees can benefits businesses. It keeps the staff motivated and results in better retention. The true potential of meaningful recognition and reward system is realized with a mechanism of performance discussion and feedback.
A performance management mechanism allows the management to map the efforts and activities of employees and facilitates quick and informed decision-making on reward or appraisal. Besides, it also promotes the growth mindset among the team members. It also helps the managers to evaluate when the employees go above and beyond while tracking progress against personal development and goals and making well-informed decisions about additional compensation like bonuses or pay-rises. The appropriate reward systems are necessary for keeping the employees happy and motivated at the workplace.
Helps to Devise Learning and Development Strategy
Regular performance management ensures the proactive development of employees by mapping their performances, identifying their strengths, weaknesses and potential opportunities. It helps businesses to institute a culture of life-long learning and constant performance improvement. Besides, the proper understanding of the abilities of the employees in an agile platform offers efficiency, cost-effectiveness and transparency.
Aligns the Goals of Employees to that of the Organization
A robust performance management system aids employees to gain a better understanding of their roles in the workplace and identify their short-term and long-term goals. An appropriate performance management system helps to eliminate the ambiguity regarding goals and progress throughfuturistic conversations and a regular cycle of review and feedback. It also helps to align the employees' goals with than of an organization besides sensitizing them on their role in enabling firms to achieve tangible business goals through a process called OUTCOMATION.
Embracing the employee performance management solution builds a culture of agility, transparency and a tech-driven ecosystem that has gained currency in organizations worldwide during recent times.