Performance management is one of the most crucial processes that you can implement in your business. It can be responsible for many improvements in your company, such as training and developing employee talent and increasing employee and manager relationships.
When performance management is applied to multiple parts of your business, it can create a lasting impact on your company. It won’t reduce your turnover rate completely, but it can help keep your employees engaged and happy.
This article will explain how the performance management process works.
What is the performance management process?
Performance management involves ongoing meetings and check-ins between managers and employees to plan, monitor, and review an employee’s objectives, long-term goals, and the overall impact they have on the company.
While it is often looked at as annual or bi-annual performance reviews, performance management is most effective when it occurs throughout the year. This could take the form of weekly 1:1 meetings where employees and their managers can discuss issues and overall performance.
Stages of the performance management process
Performance management is exceptionally comprehensive. However, it can be broken down into three main stages — coaching, corrective action, and termination.
1. Coaching
This stage of performance management is responsible for setting the tone for your company and the success of your employees. It involves training, outlining standards, listing goals, two-way feedback, and collaboration to help employees grow in their positions and careers.
2. Corrective action
When an employee isn’t meeting the standard and expectations of their position after coaching from their manager, the next step in performance management is to take corrective action. This involves calling on the manager and employee to work together to find the reasons for poor performance and develop a plan to improve the situation.
3. Termination
If coaching and corrective action have not improved an employee’s performance, the final stage of performance management is terminating the employee. This can have a positive effect on the team by boosting morale and offering others a chance to improve in that position.
Steps in the performance management process
There are four main steps in the performance management process. These include:
- Planning out goals. This calls for establishing expectations and developing a strategic plan for employees. You should determine deadlines and be clear on how they will impact the team.
- Monitoring. You’ll also need to monitor the progress of your employees and check-in to help work through any problems that arise.
- Reviewing. With frequent check-ins, performance reviews are more of a formality. Mid-year and annual reviews allow you to reflect on how the past six months went and reflect on the progress and achievements.
- Rewarding. Employee motivation is significantly impacted by rewards and showing appreciation. You should let them know throughout the year that their talents are appreciated and encourage them to continue to perform at a high level.
Contact us if you want to learn more about the performance management process!
Now that you understand how performance management works, the next step is to figure out how to incorporate it into your daily operations. That’s where we at MSY Analytics can help. We are an analytics services company that helps businesses maximize their resources and develop a sound growth strategy to create actionable pathways to their aspirational goals. With our People Productivity Solutions, our team analyzes your company growth and helps identify the key contributors to your success.
Find out more about our services online or schedule an initial consultation using our online booking request form.
