Research conducted by the Organisation for Economic Co-operation and Development (OECD), cited by the Recruitment & Employment Confederation (REC), highlights the high cost of neglecting effective management practices. It reveals that poor management costs UK businesses approximately £84 billion annually in lost productivity*. This underscores the substantial impact that strong performance management can have on enhancing organisational efficiency and driving profitability.
A well-structured performance management system helps identify and address performance gaps and empowers employees to align their efforts with organisational goals. Here are several performance management techniques that can drive employee productivity and foster a culture of continuous improvement and engagement.
Set Clear Goals
One of the foundational steps in performance management is setting clear, specific, and measurable goals. When employees understand what is expected of them, they are more likely to stay focused and aligned with these objectives. Goals should follow the SMART criteria: Specific, Measurable, Achievable, Relevant, and Time-bound.
Actionable Steps:
Break down broader company goals into team-specific and individual goals.
Ensure employees are involved in setting their objectives to increase accountability and ownership.
Use a performance management platform to track progress and give visibility to both employees and managers.
Constructive Feedback
Frequent feedback is vital for helping employees understand their performance relative to expectations. Rather than waiting for an annual review, continuous feedback allows for real-time corrections and improvements. Constructive feedback should offer clear guidance on improvement areas.
Actionable Steps:
Conduct monthly or quarterly check-ins to review progress on goals and discuss challenges.
Use the "feed-forward" technique, where managers provide future-focused advice instead of dwelling on past mistakes.
Recognise positive behaviour and achievements to boost morale and motivation.
Leverage Performance Reviews for Development
Performance reviews shouldn't just be about past performance; they should serve as a springboard for development. Shift the focus from only evaluating past performance to identifying areas for growth and career development. Employees who see reviews as a path to professional growth become more engaged and motivated.
Actionable Steps:
Integrate career development conversations into performance reviews.
Create personalised development plans that align with employee aspirations and organisational needs.
Offer access to training programmes, mentorship, and learning resources to help employees upskill.
Encourage Self-Assessment and Reflection
Giving employees the chance to self-assess allows them to reflect on their performance and identify their strengths and areas for improvement. This increases self-awareness and creates a sense of responsibility and ownership over their performance - and a path towards progress.
Actionable Steps:
Before formal reviews, ask employees to complete self-assessment forms highlighting their achievements, challenges, and areas for improvement.
Use self-assessments as a conversation starter during performance discussions, leading to more balanced conversations.
Equally, let employees be honest about their own feedback. What could help them in their learning journey?
Foster a Culture of Continuous Learning
Organisations prioritising continuous learning and development see higher employee productivity and engagement. When employees feel they are growing in their roles, they are more likely to contribute meaningfully to the organisation. Formal training, job shadowing, or cross-functional projects can provide learning opportunities.
Actionable Steps:
Create learning and development programmes tailored to individual and team needs.
Encourage participation in industry events, workshops, and webinars to expand knowledge and skills.
Promote a growth mindset by celebrating learning from failures and experimentation.
Utilise Technology to Track and Measure Performance
Technology plays a crucial role in current performance management. Tools like performance management software and project management platforms allow managers to monitor real-time performance metrics, identify bottlenecks, and make data-driven decisions. These systems also give employees visibility into their performance, helping them stay on track and manage their workloads efficiently.
Actionable Steps:
Use cloud-based performance management systems to streamline goal setting, feedback, and performance tracking.
Implement collaboration tools that allow teams to track project progress and share updates.
Leverage data analytics to gain insights into employee performance; determine what metrics to track and deduce what aids development.
Promote Employee Wellbeing and Work-Life Balance
Employee productivity is closely tied to their wellbeing. While overworking employees may yield short-term results, it often leads to burnout, absenteeism, and decreased productivity in the long term. It could even lead to them leaving. Organisations can improve morale, increase engagement, and sustain higher performance by promoting a healthy work-life balance and investing in employee wellbeing initiatives.
Actionable Steps:
Offer flexible work arrangements such as remote work or flexible hours.
Encourage employees to take regular breaks and use their days off to recharge.
Provide access to mental health resources, wellness programmes, and work-life balance initiatives.
People's wellbeing is tied to their finances: ensure salaries are competitive for the market and location and look into higher pension contributions, private health insurance, and enhanced maternity and paternity leave.
Reward and Recognise Achievements
Recognising employees for their efforts and achievements is a powerful motivator. When employees feel appreciated, they are more likely to stay committed to their work and perform at higher levels. Recognition doesn't have to be extravagant—it can range from a public acknowledgement during team meetings to a gift voucher or an extra day off.
Actionable Steps:
Implement an employee recognition programme that acknowledges individual and team accomplishments.
Celebrate successes, both big and small, through awards and bonuses.
Ensure recognition is timely, specific, and linked to the employee's contributions. This could be done through company newsletters, meetings, and social media.
Mentor for Long-Term Success
Managers who become coaches and mentors rather than just supervisors can significantly improve employee performance. Coaching involves providing ongoing support, guidance, and encouragement to employees to help them reach their full potential. Mentorship can also enhance employee engagement by providing a pathway for growth within the organisation. Ensure that mentorship opportunities—for mentors and mentees—are encouraged and formally approached, as the mentors themselves will need training in leadership skills.
Actionable Steps:
Schedule one-on-one sessions to discuss goals, progress, and challenges with team members.
Pair employees with mentors who can offer guidance and career advice.
Foster an open-door policy encouraging employees to seek help or guidance when needed. This could mean providing an anonymous resource if employees don't feel comfortable naming a problem or grievance.
Are You Looking to Enhance Your Performance Management Process?
Effective performance management is a continuous process that requires a blend of goal setting, feedback, development opportunities, and recognition. Performance management is not just about correcting poor performance; it's about creating an environment for employees to thrive, considering their unique requirements and motivations.By adopting these techniques, you can cultivate a high-performance culture where employees are productive, deeply engaged, and satisfied.
Is your HR department constantly fighting fire with fire and may not have the time to implement and conduct a thorough performance management process? Do you have underperformers in your business but don't know where to start with the process? We can be your helping hand, stepping in to work alongside your HR department to implement robust performance management or as a one-off project. It saves you the cost of adding a permanent member to your team.
For more information on Performance Management, contact our HR Services team here.
Sources
https://www.rec.uk.com/our-view/news/press-releases/poor-management-costs-uk-business-84-million-year-new-rec-advice-how-turn-around