Technology has come a long way, especially in the last few years. We are now at the point where it has become a simple task to manage and monitor the performance of employees with an online performance management process. However, just because the technology is there, doesn’t mean that everyone understands it, or uses it properly.
The benefits of performance management can be seen pretty clearly. After implementing some form of performance management strategy, 70% of employees reported feeling more valued. This in-turn has the capability of leading to 27% higher profits, and 38% above average productivity. So, is your business reaping the benefits? If not, it’s time to! Here’s what you can do to completely turn around your performance management process:
Create Real-Life Conversations
As managers and business owners, it is known throughout every industry that communication is key. Yet, when it comes to communicating about performance, that proves to be a whole other story. Conversations are the key to implementing change, and need to be the driving force when considering making a change. This will create more effective management, processes, and have an impact on employees so that they can now deliver their best performance.
How important is something like this? Studies show 43% of highly engaged workers receive feedback at least once a week. So, if you want your employees to be engaged and productive, feedback is the way to go. However, these communications don’t all have to be geared towards feedback. Simply acknowledging employees and showing appreciation can go a long way as well.
Along with focusing on how your employees are performing, it is also a good idea to take a step and back and evaluate yourself. Not everything that goes wrong is the employee’s fault. And, poor performance doesn’t always have to be blamed on them either.
This means that you will be able to see improvement all across the board, not just with your workers. Taking notes from them, as well as looking specifically on how things are running, can give you new insight on what you can do to better manage and increase performance as well as to advance both the employees, and the company.
Include Qualitative and Quantitative Data
When dealing with performance, it’s important to be crystal clear on what needs to be done to improve. A lack of proper data or examples can result in a mislead employee or manager; meaning the situation won’t improve and could potentially get worse. Providing this data also makes it measurable. When you can actually see what performance, or lack thereof, is doing for your company you can work to improve it.
For example, research shows that companies with engaged workers have 6% higher net profit margins. Data like this clearly shows if there is a significant difference, or if you need more engagement in your company. This is the ultimate way to solidify fairness and improvement as you make your way towards your performance management goals.
Performance management isn’t always the easiest to implement, but the benefits are second to none. Building a business model that provides continuous engagement is important to the financial future of an organization, and creating a performance management program that builds, retains and supports the growth of employees is just an important piece.