The most precious asset any organization can have is its people. It is their abilities, knowledge, and experience that can not be replaced. Still unsure why are the most successful organizations taking an employee-first approach?
It’s because they follow the simple mantra – Grow your people, and you will grow your business!
So, how far do you go to help your employees perform better?
Looking for Performance Management Software? Check out SoftwareSuggest’s list of the best Performance management software solutions.
71% of employees would take a pay cut to secure their ideal job.
Surprising, is it? Today, the workforce values their growth, learning opportunities, culture over the monetary benefits. 83% of employees working in an environment with suitable reward and recognition structures say they are content in their position. So, how can companies actively contribute towards their employee’s growth?
Performance management – Yup! That’s your answer.
The process in place to empower people, reach their true potential, from top to bottom, significant to small. A process that helps you develop a culture of feedback and ensures growth!
Now that we know what performance management is, let’s learn why it is essential for every business, irrespective of its size, shape, and industry, to invest in it?
Also, before the entire process makes you feel overwhelmed, remember, you do not have to step into every process to manage it. A suitable performance management system can do it for you. All you have to do is the brain work, and tools will do the rest.
Benefits of Performance Management
- Increases employee retention
- Boosts employee engagement system and productivity
- Enforces continuous improvement
- Highlights training gaps
- Identifies potential risks
So, how can you avail of all of these benefits? That is what we are going to discuss today – Performance management techniques. But wait, does it sound fancy to you? Do you think a small business would fail to implement those? Let’s bust some myths today!
3 Performance Management Techniques To Boost Small Business
1. Personal Development Plans (PDP)
This particular online performance management technique is based on reflection on an individual’s performance and needs. With a focus on personal development, this plan sets out goals for future growth and supports them with specific training and action plans.
This process helps the individual align better with the team as well as the organization. The manager usually assigns opportunities to develop expertise, learn new skills, and share talents within or outside of the organization to meet the individual goals.
Before moving forward, do ask yourself the following question to ensure a successful result.
- Does the individual as well as management agree on the timeline and milestones for achievement?
- Can the management provide the resources necessary for the employee to be successful?
- Is the plan for achievement clear and focused?
- Are the steps specific and actionable?
2. Management by Objectives (MBO)
Just as the name suggests, this performance marketing technique aims to improve the performance of an organization by defining objectives. This is a powerful technique to drive results for work that must be done one step at a time.
Such a performance management technique is a healthy way to create a culture of working towards common goals. Moreover, an objective-oriented strategy boosts the morale of the employees and keeps them motivated. MBO also enables you to compare results with your previous outcome and constantly optimize your processes.
The most important question while implementing this performance management technique is, Management by whose objective – the employee or the employer? We already discussed how it is crucial to have an employee-centric process. Still, the key is to find a middle ground — setting objectives that align with the individual as well as the organization determines the success of this technique.
3. Peer Reviews/ 360-Degree Feedback
Peer reviews are one of the employee performance management tools that emphasize the social aspect of the performance. In addition, the 360-degree feedback put the power in the hands of everyone the employee works with instead of just the employer, making it a more rounded performance management technique.
Which more and more practices and teams moving past the rigid hierarchical patterns, peer reviews as a performance management technique provides you the opportunity to stay up to date with the trend.
Today when the teams are self-driven, having and excellent collaboration and coordination within it are non-negotiable. However, as crucial as these reviews might be, they only provide value when processed correctly.
Having a system that addresses the following questions is a must:
Which individuals can review the other?
Do all the reviews hold the same weight?
Should you keep review anonyms?
This is a start; you can address more questions as per your requirements.
As vague as this technique looks from the outside, let us assure you that it isn’t. Oh, wait. Netflix can do that for us.
Yup, the multi-media, global giant has already implemented this performance management technique.
Netflix encourages employees to give direct feedback and use “radical candor.”
When Netflix suspended the formal, annual performance reviews, they instituted peer reviews. To keep it simple, they asked people to identify things that colleagues should stop, start, or continue.
Starting with an anonymous software system in place, they shifted to but to direct customer feedback system over time.
The end goal is to move towards more agile and less boss-centric reviews.
But, no matter what technique you pick, having the framework right will make it a success! So let’s break it down and learn what all it should consist of.
Last but not least, experiment and see what suits your people the most, what drives the best results. You might not find the correct technique in the first place, but have a framework set, and you’ll come around the right techniques gradually. But, hey, don’t forget to incorporate the technology.
Technology can make your efforts ten folds successful with a simple process. At the same time, the key to it is selecting the right tools. Need some help? We have prepared a checklist for you to get the best fit. Check out our 10 step performance management system selection guide.
Well, these are some of the best performance management techniques as per our experts. So what are your thoughts on it? Have you tried any other methods? Let’s continue this chat in the comments below.
Urmi specializes in writing long-form actionable insights for the SaaS domain. She has been creating content that translates the brand stories and their expertise for 3+ years. Her content empowers businesses to build and engage with communities and develop better visibility. When not scribbling, she explores the new tools and technologies in the industry.
