5 Ways You Can Achieve Effective Performance Management

For years performance management has had a bad name. When people think of performance management they might think of the dreaded once-a-year (twice for those really lucky people) appraisal, where managers and employees met to discuss performance targets that were reached or not reached. More than anything these appraisals serve as a box-ticking exercise that often left employees feeling demoralised and frustrated. Impraise recently published their latest Performance Management Statistics. It was found that 22% of employees call in sick rather than facing their performance reviews and 15% of those surveyed have even cried when they came around.

While the world of work continues to change and evolve, performance management has also moved with the times. We’re seeing organisations adopting much more agile systems that have the development and support for employees at the heart of the whole process. Why? This helps to create a more engaged workforce. They can focus on delivery which results in a more productive workforce who are motivated to perform because their career goals have been taken into account.

What is Performance Management?

Performance Management is a continuous, flexible process, not a once-a-year conversation. It supports business agility – allowing organisations to meet the challenges of the unpredictable, changing world we live in. Performance management is based on unambiguous goal setting, continuous feedback, frequent check-ins and support to enable and motivate employees to do their jobs to the best of their abilities. It also involves providing them with the tools and support required.

As well as ongoing and continuous feedback, we encourage all managers to have frequent 1:1 meetings with members of their team, to allow them to discuss:

• Life – There’s so much going on in the lives of your employees outside of work. A general catch-up on how they’re doing, what is happening, if there’s anything troubling them, shows that you care about the people in your team besides what they bring to the business.
• Highs and lows – there are going to be wins and hurdles in their workdays, so take the time to allow them a platform to reflect on successes and highlights. This enables managers to recognise the effort and hard work they’re doing even if something hasn’t quite gone their way. You should provide them with constructive feedback that will help them to overcome challenges in the future.
• Where support or development might enhance performance – identifying areas where support or development is needed allows managers to provide employees with the necessary resources, training, or guidance to help them perform at their best.
• Encouraging employees to give feedback to their manager creates a culture of open, two-way communication. It also shows that the manager values their employees’ perspectives and is committed to improving their leadership.

5 Ways You Can Achieve Effective Performance Management

1. Set clear goals that align with organisational objectives

A fundamental aspect of successful Performance Management is effective goal setting.  This includes not just agreeing on deliverables, but being crystal clear on the standards which you expect. After all, if employees are not clear about what you need, how and why, they are not set up for success. Too often we make assumptions that others understand goals as we do, but this is not always the case. To support meaningful and accurate goal setting, consider asking your employees to draft the goals and sense check that they are aligned with organisational / team objectives.  This also ensures that employees can relate their work to the organisation and creates a sense of purpose, which in turn increases engagement, motivation and commitment.

2. Create a culture of continuous feedback

Continuous feedback is essential for effective performance management to encourage positive behaviours as well as good delivery.  All too often we focus on areas of concern and do not put equal time into telling others what we liked and what we appreciated about their input.  Many people are unused to or uncomfortable with giving feedback, so small issues that could be resolved with a simple conversation can snowball into serious problems. Employees who have worked hard on a project can feel demotivated and undervalued if they are not recognised for their efforts.

Feedback should always be constructive, respectful timely and specific. By creating a culture where giving continuous feedback becomes a part of everyday working life, it becomes embedded across the organisation and improves performance and productivity. Feedback should not just be from manager to employee but should also be encouraged from peer-to-peer to further embed the culture and encourage collaboration.

3. Train managers and get their buy-in

Performance Management doesn’t work without managers who commit to the process – if the manager doesn’t buy in and support it, neither will the employees. Managers are responsible for setting performance expectations, providing feedback and working with employees to set meaningful goals. They should foster a relationship of trust and openness to really motivate their team members. If this is either new or managers don’t feel comfortable with it, ensure that adequate training is provided – both on the job and in a more formal setting where the skills required can be developed and practised in a learning setting. Foster transformational leadership where managers inspire and motivate their employees to succeed, and you will reap the benefits.

4. Meaningful Development

Employee development is an important aspect of Performance Management and ensures your employees have the skills, and confidence in their abilities to do their job effectively. Therefore, it’s important to provide opportunities for your staff that allow them to develop and encourage them to do so. These don’t have to be formal training courses but could also include self-directed reading, job shadowing, Ted talks, task rotation, mentoring, and attendance at conferences to name just a few. Ensure that development is tailored to delivery by asking: what knowledge/skills/experience will enhance your performance in this goal and then planning how to provide the development.

5. Engage employees in the process

Effective Performance Management is a participative process with collaboration between manager and employee, and employees should be supported through a coaching approach to take ownership and accountability for their work. Involve employees in the setting of their goals and ask for their ideas in resolving issues or improving processes to create buy-in and strengthen commitment and motivation further.

How can AAB People help?

Performance Management is crucial for organisational success. The understanding that motivated, engaged employees who are supported in their work and understand how their role contributes to the larger organisational picture is the crux of modern Performance Management and is what every organisation should seek to implement. Employees who are engaged and motivated are more productive, more innovative and more committed to their companies. By embracing performance management your organisation can get rid of the yearly appraisal, stop the tears and work towards building an engaged workforce.

If you would like to discuss any aspect of Performance Management please contact Anna Phipps, or your usual AAB People contact.

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