Performance Management and Why it is Crucial for Your Business

Still, doing annual evaluations? Increasingly, these metrics are considered outdated in most types of businesses. Perhaps this is why Gartner says 87% of hiring managers are considering revamping their performance management processes. Maybe they’ve been listening to the more than 90% of employees who say that traditional performance management tools don’t work anymore. Why is the right kind of performance management so important to your business?

What is Performance Management and Why Does it Matter?

The old performance management approach was to look back at the last year of the employee’s work and reward it—or put the employee on a performance improvement plan, or PIP. Here’s the problem with this model: It does not correct behaviors on the fly, nor does it motivate your employee to perform well in real-time. Can you remember what you did a year ago on the job? If you’re planning on nurturing and retaining your talent, a year is simply too long to wait.

A good performance management plan should be participatory throughout the employee’s tenure. The goal is to reward the wins and correct behaviors to improve performance. It’s a coaching process that engages your workforce. This is particularly important for the younger workforce, who are more likely to be scouting for a new job. Not to mention the Great Resignation, where four million people a month are seeking out greener pastures.

Regular performance management educates, coaches, nurtures and encourages growth. It’s a great formula to keep your workforce engaged in the mission of your organization. But if you want to switch from possibly outdated performance metrics, what would that look like?

Elements of The Best Performance Management Reviews

Today’s performance management systems should incorporate the following elements:

  • Establish metrics with the employee, not for the employee. Set measurable and attainable goals in a joint process that engages the employee in their success and the success of the organization.
  • Track these metrics carefully and review them together at least every quarter—if not more frequently. If an employee can’t remember the last time they received feedback, you’re doing it wrong.
  • Seek 360-degree feedback from peers instead of conducting a hierarchical evaluative process just with a supervisor. Many times, the supervisor doesn’t work elbow-to-elbow with the employee—but peers do.

Blackstone Talent Group works hard for our employer/clients to help them find the best talent to meet their hiring goals. If you’re seeking transformation not only in your performance management process, maybe it’s also time to partner with a better caliber staffing agency. Talk with our team today about how we can help you find better talent—fast.

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