Key Performance Management Insights for Modern Leaders

Performance management is a heavy term in business, and it raises many questions even for the most knowledgeable managers. The downside? The best solution for the organization's performance management strategy depends primarily on the culture of the employees. It must take into account the company's values and overall goals and use the right motivational factors for the unique workforce. That means we can give advice every single day (and we intend to), but still only scratch the surface of the needs of your employees (until you sign up for IceHrm’s performance management software).

You know the organisation's needs, and we know performance management. Here are some cold, hard facts to help you make those big performance decisions.

Systems and tools are absolutely necessary

Whether it's an affordable performance review system with useful integrations or a free (probably complicated) spreadsheet system, you can't manage more than one person without a tool. It may not be so surprising anymore, but 77% of HR managers believe that employee interviews do not give an accurate picture of employees' performance. Performance management systems contain all important details, small and large, which ensure that all parts of the employee's working day are taken into account. The system should contain a common space for management notes, background for previous problems and an overview of what each individual has achieved, so that any manager, supervisor or manager can report on the progress. If you are missing any of these parts, there is a good chance that the employee interview is wasted or may seem demotivating.

Bad management costs a LOT

In Gallup's State of the American Workplace report, Gallup CEO Jim Clifton estimates that American businesses lose between $450 billion and $500 billion each year due to poor management. Most organizations operate with a 5-10% productivity loss that can be eliminated through better management practices, and this can cost as much as 7% of total annual revenue. Without a good leader at the helm, even the best tools cannot help. There are many techniques that should be used by your team, but the very first step should be to help your employees set performance goals. How can anyone achieve a goal if the goal is never revealed?

Set goals, always set goals

Managers should help employees quantify their goals. Numbers may not always be the most motivating, and this process can be challenging for some positions, but being able to see how much money a particular department or job saves or earns for the company will show the employee how valuable he or she is to the team. If it is impossible to value the work, you can use time recording and delivery targets. In this way, the employee gets a clear overview of what needs to be done during the week, which tasks need to be completed and an idea of how much time they are saving the team for.

Competence building will inspire and retain employees

89% of employees in North America believe it is important that the employer supports their learning and development (66% value learning more than financial compensation). That's right, the employees want skills development, and offering further education is not only an incentive that is beneficial for the company's future, it can also be designed to suit the atmosphere of the business, the industry or the company culture. Instead of researching which program has been most effective (you won't find a single answer anyway), you should ask your employees what they want. Surveys or a short meeting may be all it takes to find the perfect approach to continuing education for your organization. The only wrong form of further education or skills development is the one that the employees do not use.

Changes in the employee interview do not have to be drastic

A successful employee interview does not mean that you have to scrap everything you do today. Simple changes, such as introducing goal-setting tactics, addressing performance issues as they arise instead of months later, using a professional tone and wording, and expressing gratitude throughout the year can transform the entire process and system of performance appraisals. On top of it all, neither long meetings, approval from management nor additional budget are required. It just requires a thoughtful leader.

Did you already know all this and even have a suggestion to build on some of our points? We'd love to hear what you think in the comments section. Watch a quick demo of our performance management tool to find out if IceHrm is right for your team.

In the complex landscape of performance management, IceHrm serves as a guiding light, offering solutions that align with the unique needs of your organization.