How Performance Management Increases Employee Morale
Keeping staff engaged and inspired is key to the success of any company. Yet, one of the main ways companies evaluate their employees may do just the opposite.
Indeed, annual performance reviews often cause people a great deal of grief. Not only do they create anxiety, but they aren’t very effective. For one, they only happen once a year, which doesn’t allow for consistent feedback. Further, they usually take an hour or so, and that simply can’t cover the scope of a year’s performance. And, most importantly, they don’t instill confidence in individuals or teams. Employees dread receiving poor reviews, and will end up looking at colleagues as competition for job security.
With this in mind, companies need standards, and managers must inspire staff to meet and exceed them. As a result, many companies are focusing on performance management as a way to guide their employees to reach their potential.
Why performance management?
Performance management focuses on the development of an employee through each step of their journey. In doing so, each employee has a clear description of their role in a company. From here, individuals know exactly what is expected of them, and are given feedback along the way. As such, the plan focuses on creating a winning team rather than evaluating an outcome. Not only will this method produce better results, but it fosters a much happier work environment.
First, people aren’t wondering what they need to do in order to succeed; guidelines are laid out for them and help is available along the way. Second, they are evaluated on a more frequent basis. If they are struggling, they know sooner and have a greater opportunity to change their behaviour. Ultimately, employing this method will reduce employee turnover, as it prevents employee burnout down the line.
Another valuable reason for using performance management is to create the blueprint for an ideal employee. As new staff joins the team, it is important to have a guideline for exactly what creates success in a given role. Without a clear vision of what an ideal hire looks like, managers are unable to determine an individual’s precise workplace aptitude.
Performing a job fit assessment allows companies to determine whether an individual makes an ideal fit. And, by using an assessment benchmark, they are able to see exactly how well a candidate will perform. Creating this benchmark benefits the whole team, as hiring the right person creates a greater opportunity for each employee’s success. The right hire invigorates a team, while a bad hire redirects energy away from a company’s vision.