Why Performance Management is Important

I’m seeing those employee centric companies (who prioritise the more casual conversations combined with a more structured system), performing so much better in employee surveys than those who are relying on traditional structured systems alone. 

It’s through these informal chats that trust, and engagement is built and that means that often, if there are small performance irritations, then these can be ironed out quickly with an informal chat. 

Investing in a good performance management process will contribute to:

  • Having a motivated team
  • Increasing overall productivity
  • Creating loyal employees

I’m a real advocate for being as open and clear as you can be with your teams about the system you have in place. For me, I like to know what is expected of me, by when, and that’s why I always encourage a good level of transparency within teams. No changing the goalposts half way through so people feel confused, being open and straight with employees, doing what you say you’re going to – these are all things your employees will appreciate.

By being upfront with team members on the frequency of their catch ups (or 121 meetings), how they can prepare, and what structure the meetings will take, will encourage them to become more engaged in the sessions. There are no nasty surprises. 

Breaking down the company goals and how their contributions as individuals and teams can influence the performance overall, for me this is a vital component to performance management as it can improve motivation and productivity. It’s vital to have clear company goals and then get everyone bought into them and working towards them.

Let’s not forget how important it is to call out those who perform well; showing appreciation and praise is how many of us, me included, can feel like a valued member of the team. Feeling valued and having a sense of purpose is one of the top asks of employees in most recent surveys. It’s so easy just to focus on the people not doing so well and to forget, or take those doing well, for granted.

A good process for me has regular check in points, not only to recognise good performers but also highlight any areas of concern and address them before they become too. With a continuous improvement plan in place, employees can always see and understand their performance, and by supporting an open dialogue they’ll have a better sense of how to manage their role effectively. If things really deteriorate, then a clear performance process is necessary.

Why Performance Management is Important