As an HR manager, performance evaluator, or HR director, many people misunderstood the true meaning of performance management. If you think that performance management merely means to assess your employee’s performance against the assigned task, you’re probably wrong. In fact, performance management is a whole system rather than a task.
According to the 2018 CEB calculation, a company employing over 10,000 people spends about $35 million a year on performance reviews alone. That is a huge number, isn’t it?
Best performance management practices include management practices that are focused on helping your employees in two ways:
- Take their expertise to its full potential
- Increase their satisfaction
Have you considered these two objectives while trying to streamline your performance management tactics as an HR manager? The answer is probably NO. Perhaps, you have left one out of the overall process or system.
Best Performance Management Practices
With its never-ending benefits, more and more enterprises are now upgrading and focusing on their performance management system. It is important to analyze the frequency with which employees are evaluated, training of hiring manager, desired goals, alignment, and actual output.
A Human Resource Management Study in 2014 found that more than 50% of HR managers rated their company B or C+ in performance management. 23% of HR managers gave C grade while only two percent of HR managers gave their companies A.
Looking for a change? Well, here are 5 best performance management practices HR managers should know:
1. Different Shift in Feedback Frequency
Those days are long gone when the performance management process was limited to annual feedback reports and more. The advancement in the IT sector has given rise to performance management systems that help in streamlining the employee performance management process.
More and more companies are now abandoning the annual performance review – replacing it with a real-time performance review. Best performance management practices allow organizations to keep track of real-time, regular feedback by HR managers, customers, and co-workers.
It’s not the only way around. While HR is busy evaluating the best out of the crowd with real-time stats, employees also have the option to report to HR for any complaints. In simple words, a performance management system is used for constructive criticism, immediate feedback, and actionable insights.
When combined, this data can serve as a huge deal to address employees and groups issues and address them accordingly.
2. More Conversations
There is a great need for redesigning the annual or quarterly exercise of performance reviews. This time of the year comes with a lot of inducing negative emotions of HR managers and employees for each other. In fact, both sides end up having some really bad experiences as the evaluation process ends.
Thus, it is in the best interest of the organization, HR, and its employees to get rid of the annual review system. In doing so, managers must find adequate ways to speak with their employees.
For a better assessment, it is best to talk to the struggling employees more often before marking the feedback. Again, frequent feedbacks work best to increase HR interaction with employees – leading to productivity and growth of employees.
3. Effective Management Training
Newly hired HR managers and performance evaluators struggle when trying to understand the organization’s product, service, goals, and aim. In fact, best performance management practices are directly associated with the training of HR manager per company’s goals.
It means that managers also need to be trained well and taught leadership qualities to help employees succeed. Yes, it’s not only about struggling employees – but managers also matter!
4. Help Employees Define their Goals
As much as performance management is important for a company’s success, one shouldn’t forget about the individual set of goals of your employees.
After following the above-mentioned practices, it is best that HR managers act as a leader for employees and help them have a goal to follow. Priorities that align with bigger objectives definitely motivate employees to work harder and effective.
5. Focus on Culture
Performance management is much more than just evaluating employees. The system has evolved much beyond business goals and needs. A workspace that prioritizes good atmosphere, culture and climate help employees see the bigger picture. Above anything, else it is responsible for HR that the employees are provided with a professional workspace.
Developing complex workforces that are destined to focus on their as well as the company’s goals can greatly impact the performance management process. Therefore, it is best to let employees know that they can have a future within an organization.