3 Performance Management Best Practices That Positively Affect Your Business Outcomes
Every performance management program should be constantly evolving. It's a live process. There are always aspects of your program that you can proactively adjust as your teams continue to develop and grow.
And forward-looking organizations are moving from a process-centric performance management system to focus more on the people at the heart of the companies. People-centric performance management involves both employees and their managers.
New research from Brandon Hall Group (BHG) reveals that more and more organizations are merging employee development, coaching and feedback in new ways to drive their businesses forward. Are we getting it right? Here are three performance management best practices that are proven to positively impact your business outcomes:
Offer performance management training for managers: That's right - implementing epic performance management processes begins with managers! Your leaders first need to understand the process and learn how to involve and engage employees. If you're already developing your managers, you're in good company: about 86 percent of organizations deliver performance management training to their managers, whether it's formal, informal or a combination.
Organizations that invest in performance management training for managers tend to enjoy a boost to their internal key performance indicators (KPIs), such as employee engagement, retention and productivity. These organizations also enjoy a boost in external metrics such as customer satisfaction and retention, organizational revenue and market penetration.
Boost employee participation: Organizations that actively involve employees in the performance management process are much more likely to see gains in employee retention, engagement and the pursuit of development. Organizations that encourage employee self-assessments are 52 percent more likely to see an increase in staff productivity, alone!
Want to get started with a quick win? Create a feedback culture within your team and empower your employees to take an active role in the evaluation process. Make sure your employees record items they believe should be part of the assessment process, such as development opportunities they want to pursue and both personal and professional goals.
Bolster employee recognition: There are so many ways to show your employees that you appreciate their efforts. Go on, get creative! While it doesn't take much effort to express some kudos, the return on investment can be astounding. There's a strong relationship between recognizing employee performance - whether for blockbuster achievements, meaningful contributions or both - and positive impacts on critical business metrics.
Making it rain with (well-deserved!) gold stars significantly increases employee engagement, employee productivity, and deeper involvement in development opportunities, according to BHG. Yet, 25 percent of organizations still don't have any type of recognition program. Smart organizations know performance management goes beyond employee appraisals to include ongoing, continuous feedback and recognition.
People-centric performance management is a business-centric focus
By encouraging collaboration at all levels of the organization, you can implement people-centric processes that support both your people and your ambitious business goals.
Think your organization could use a performance management facelift? Download the eBook 3 Performance Management Practices that Make a Business Difference to learn more about how these performance management best practices can make a real difference to your business outcomes (and some useful stats to help back you up).
Your turn: What are some performance management practices your organization has put into place that have been tied directly to positive business outcomes? Share your answer in the comments below!