Performance management is a crucial part of any manager’s job. Not only does the process give each employee a solid idea of how they’re doing, but it also provides a framework for your entire team to do their best work.
Every organization needs an effective performance management process. Yet, some businesses are still using outdated methods that often do more harm than good.
In this guide, we’ll break down why a performance management process is so important and share the steps for creating a powerful, modernized program that sets your employees up for success.
An effective performance management process is the backbone of a productive workforce. A well-structured performance management process helps employees work toward their individual goals, driving productivity without burning out your team.
While some businesses equate performance management with annual performance reviews, these one-time meetings aren’t enough. Ongoing feedback and regular coaching are key to changing employee behavior and rewarding employee accomplishments — a yearly check-in falls far short.
Continuous performance management is the way to go. With this approach, managers offer both positive and corrective feedback regularly. That might mean scheduling weekly one-on-ones or taking an even more casual approach where managers make it a point to give each team member feedback daily.
Interestingly, 80% of employees who receive meaningful feedback from their manager are fully engaged at work. The issue, though, is that just 16% of employees say they have extremely meaningful conversations with their managers.
Businesses that manage to bridge this gap see so many benefits, including:
This strategy does put more on managers’ plates — especially for those with lots of direct reports — but it’s the key to better employee performance. Fortunately, performance development software like RapidBee makes it much easier for both HR and managers to run an effective performance management process, while making sure leaders aren’t spread too thin.
Don’t leave performance management up to the discretion of individual managers. Create an agreed-upon process for everyone to follow, regardless of their department or job title. Use the steps below to create a unique performance management process tailored to your company’s objectives.
First, set clear performance goals for employees that align with your organizational goals. For example, if your goal is to boost sales by 10% this year, that should affect individual goals for your sales, marketing, and customer service teams.
Work with your HR team to look at employees’ job descriptions, define key competencies for each role, and set goals based on how each team member needs to contribute to your mission.
Keep in mind that a goal like “Bring in more sales” is too vague to measure employee progress. Use the SMART goal framework to set targets that are:
For example, a SMART version of “Bring in more sales” would be “Increase first-time customer sales by 10% by the start of Q3 of this year.”
You don’t have to ask managers to memorize their teams’ goals, either. RapidBee’s performance management tool provides clear visibility into goal progress for both employees and their managers. View goals by status, due date, and completion, and make updates. RapidBee’s AI tools can even identify at-risk employees and give actionable recommendations to fix performance gaps before it’s too late.
Your team has a lot on their plate. It’s easy for performance management to fall to the wayside during the hustle and bustle of the average workday, which is why a performance management system is so crucial.
Tools like RapidBee provide a structured framework for automating the tracking of goals, streamlining evaluations, and improving employee performance. From performance evaluation templates to a regular review process, you can track key performance indicators (KPIs) in real time without any manual effort. If you want to leverage the benefits of performance management but struggle to actually implement it in your daily work, RapidBee’s performance management system is a must-try.
At this point, you have overarching goals and a system for tracking them. Now you need to define a unique plan for each employee. This plan includes their target goals, but it should also address their longer-term career plans. Where do they want to go from here? What skills do they need to nurture today to succeed at your company in the future?
Create personalized employee development plans to not only boost employee retention but also increase the value of each of your team members. This might mean setting up mentoring initiatives for junior employees or offering a free training program to prepare employees for future leadership roles.
Gone are the days of one-time performance appraisals — modern businesses embrace continuous performance management through regular check-ins and real-time conversations. By routinely offering constructive feedback, your managers can guide employees on their career development pathway, address any performance setbacks, and recognize good performance when it happens.
In practice, this ongoing process can include:
Annual performance reviews can be a helpful part of the performance management process, although they can’t take the place of regular feedback. Instead of frantically trying to compile data each year, lean on RapidBee to automate and streamline the review process. Create custom templates for different departments, automate notifications, and generate detailed audit trails to keep your teams accountable.
Performance management processes should evolve with your company. An effective performance management approach is never static — it evolves based on business needs and workforce trends. You should regularly refine your performance management strategy, review outcomes, and adjust processes to keep up with your organization’s goals.
Don’t try to force your teams to use a performance management plan that doesn’t work. When in doubt, ask employees and managers for feedback on the performance management process, and adjust your approach based on their comments.
It could take some time to refine your process, but fine-tuning will create a performance management process uniquely suited to the nuances of your team, workplace, and corporate mission — leading to tangible improvements in employee performance.
Annual performance reviews have their time and place, but nothing can substitute for a perpetual performance management process. This dynamic, ongoing process integrates goal setting, continuous feedback, and performance evaluations to support both employee development and your organizational goals.
By leveraging performance management tools like RapidBee’s performance management software, your business can streamline regular check-ins, track critical KPIs, and set every team member up for success. Download RapidBee’s free guide to employee engagement surveys to access helpful best practices for boosting employee engagement and performance with less hassle.