4 Ways to Optimize Performance Management

In today's modern workplace, HR managers are striving to improve their performance management strategy to drive organizational success. Finally, a strategy that includes the right elements can directly correlate with workforce productivity and, most importantly, company profitability.

Despite these positive intentions, more than half of managers (58% to be exact) are dissatisfied with their company's performance management process and would rate it a grade of C or worse. With that in mind, here are 4 ways to optimize your performance management strategy.

Redesign traditional performance reviews

Out with the old and in with the new, right? This is exactly the principle that should be applied to the ineffective, semi-annual and annual reviews. From an outside perspective, many employees feel that the once-or-twice-a-year conversations with their manager provide no inspiration, no professional development, and no value - and with such a gap between each review, it's no wonder that poor performance occurs remain unnoticed.

In many companies, performance reviews are viewed as “the right thing to do.” However, with only 14% of employees believing their performance reviews motivate them to improve, it's time for HR to ask the question: "Are these reviews effective for my employees"?

If you decide this isn't the case, it's time to turn your managers into coaches. By encouraging this, you allow managers to look beyond the performance numbers and have real conversations with employees, conversations that focus on questions that uncover the employee's dreams and goals within the company.

This is by no means a short-term solution, but if you encourage your managers to have casual conversations instead of forced appraisals, employees will begin to be more productive and release energy that will help the entire workplace thrive.

Be the reason for your employees’ progress

As previously mentioned, professional development is an essential component to the success of an employee performance process. Essentially, it's about laying the foundations for a capable workforce that can efficiently and effectively achieve the desired results.

On average, employees today stay in each company for 4.5 years. However, if there are no opportunities for on-the-job training and advancement, employees will quickly realize that this company is not the right fit for them. What's more, 77% of CEOs fear that a lack of key skills will hinder their company's growth.

These two statistics show how important personal development is, and who better than HR to ensure employees have ample opportunities to advance their careers? If you're wondering how to set up a modern learning service, consider the following examples:

• Set up an LMS (Learning Management System) in your organization. These tools provide high-quality, informative videos that help employees learn new skills and techniques.
• Based on employee goals established with the manager, determine webinars, conferences and exhibitions that a group of employees should attend throughout the year.
• Offer highly valued and experienced company members the opportunity to create learning content using easy-to-use tools so they can produce guides themselves.
• Use your HR system to uncover gaps and skills gaps using the competency function and compare the employee's current classification with the one they should achieve.
• Conduct a survey or adaptive interview tool to uncover and identify key skills gaps across the organization. Assign courses based on skill gaps using your LMS system.
• Encourage managers to act as a coach and mentor to facilitate learning at a fundamental level and ensure the employee is making progress every day they are with the company.

Give your employees positive feedback

Simply put, positive feedback is a sign of encouragement and one of the most powerful things a leader can give to their employees. Praise, delivered in a timely and well-deserved manner, encourages employees to achieve their goals and boosts company morale.

Data from a 10-year study of more than 200,000 workers found that 79% of workers who quit their jobs cited a lack of appreciation as the main reason for leaving. In contrast, the same study found that consistent praise in the workplace helps employees achieve better results. 66% of employees said “appreciation” is a key motivator for their performance.

Make sure every employee is recognized for their hard work to make a greater contribution, from the unsung heroes to the project manager. In this way, the individual's self-esteem is strengthened. If you recognize an employee's weaknesses, praise them as soon as you notice signs of change.

Of course, it's impossible to recognize every single employee for their hard work and contribution to the bigger picture. However, what if HR could incorporate a self-service approach that saves their team and managers from having to identify all of the company's top performers? By using HR software, employees have the opportunity to recognize their colleagues for their hard work and spread the praise throughout the company. This ensures that no achievement goes unnoticed.

Embedding performance management strategy into technology

A study by Workplace Trends found that 45% of HR managers do not believe in the effectiveness of annual performance reviews, while 58% of companies still use spreadsheets for performance tracking. Given the rapidly evolving world of work, doesn’t this sound like a pretty outdated and inefficient method of performance management?

With cloud HR software like IceHrm, performing performance management has never been easier. The following features will help you shape your company culture, develop your employees, pursue goals, conduct training, and recognize your employees' achievements.

• Performance reviews
• Library of Goals
• Responsibilities
• Succession planning
• 9 box grid
• 360° feedback
• Warnings
• Programs
• Employee recognition

Once you're familiar with the feature-rich suite, you'll be able to effectively measure individual employee success by tracking their performance against goals and personal targets and understanding the impact on the business. Align the above points with technology and you will be able to practically see how much your performance management strategy has changed.

IceHrm empowers HR to revitalize performance management. Modernize your approach, foster growth, and recognize achievements seamlessly with IceHrm.