What is Performance Management?


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For many companies, performance management is going to be something that is ignored until the end of the year, when annual performance reviews have to occur. This is not a smart way to handle this kind of thing though. In fact, performance management needs to always be an ongoing discussion between the employee and their manager all the time.


A big problem with the annual reviews is that the employees are not going to focus that much on the feedback, whether it is positive or negative. Their performance reviews at the end of the year can be tied to bonuses and raises, so the employee is going to focus on how that change is going to go to their future paycheck. This means they may not follow any of the advice or actually make improvements because they are more focused on the money that they can earn.


Another issue is that a lot of companies still insist that they need to use an arbitrary Likert scale to score the performance of the employee. Rather than taking the time to have meaningful dialogue with the employee, the employee will focus on the wrong things. Doing performance management as an ongoing basis, rather than just once a year, can help to fix some of these issues and will give the employee something to focus on during the year, ways to improve, while increasing the productivity for your business.


If you are worried about how to handle this type of performance management, it is time to look at HR outsourcing. They will be able to bring in a new approach that will encourage ongoing engagement and a lot of dialogue between the manager and the people who report to them. It is common for these conversations to focus on performance development and will include some guidelines for discussing contribution to the goals of the business, alignment with some of the core values, and the goals necessary for future success. In addition, the right HR professionals will be able to provide the necessary training to help managers of the company learn how to do these steps for the best results.


When it comes to performance management and making sure your employees are keeping up with productivity while feeling like a valued member of your business, you need the right team to get it done. Human resources outsourcing companies will be able to help you with performance management and ensuring that all employees are able to get reviewed and rewarded for the hard work that they do for your company. Get the right performance management system in place to help your business succeed.

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