This blog is all about delivering quality performance management. We cover:
- what performance management is
- why good performance management is important
- setting performance goals
- how to address poor performance
What is Performance Management and Why is it Important?
The aim of performance management is to align individual efforts with organisational objectives. Supporting your team with their personal and professional development and therefore driving engagement, productivity and retention … and ultimately your organisation’s success.
Effective performance management is NOT a once-a-year meeting, it is a continual process of support, feedback, teaching and investing in your team.
Done well, performance management will increase motivation and engagement, encouraging high performance and discretionary efforts. People who feel truly valued and appreciated are much more likely to go ‘above and beyond’ when it comes to their work. These are the things that we as employers are always looking for from our staff, but how can we expect it if we don’t actually encourage it?
A lack of performance management – or it being done badly – will lead to poor standards and staff dissatisfaction … and subsequently customer complaints, loss of revenue or increased costs, employee disputes, high employee turnover and a negative reputation. And who wants any of that?
Why is performance management a sore spot for many managers?
Often, performance management is seen as an ‘add on’ to the day job, especially when adequate training hasn’t been given. Certainly it can sometimes be tricky, especially if the feedback needs to be a little more on the constructive criticism side than full of praise.
But … managing IS the day job!
The solution?
Clarity for your managers on what the managerial role involves and good training in the appropriate skills!
yes we know, saying that can be easier than doing it!
Training
Training means that all managers will be on the same page in their approach to performance, and helps them to understand what their responsibilities are. Structured training sessions are a good way of ensuring everyone is provided with the same information and chance to develop both their skills and confidence.
During training, it’s essential to communicate that performance management, and in particular performance reviews, must be free from discrimination or bias related to any of the protected characteristics (Equality Act 2010).
Training may include:
- How to conduct fair evaluations
- How to reward good performance
- How to give effective feedback
- How to begin a conversation about poor performance
- How to set goals and build development plans
- How to deal with an employee who does not take feedback well
Communication
Creating an open feedback culture is a key element of effective performance management.
An ongoing dialogue between manager and employee will help the manager ‘stay in the loop’, be aware of improvements, and able to offer suitable support and training where needed. It also means the employee feels constantly supported which should increase their motivation.
Feedback needs to be timely. Positive or negative, feedback given weeks after a piece of work is completed will have far less impact.
Feedback should be actionable and solutions oriented. The person receiving it needs to understand how to do a better job next time. Otherwise, what’s the point in giving the feedback?!
Many organisations implement 360° feedback. This article from Indeed explains 360° feedback and an oldie but goodie from Forbes (an American article but still applicable here in the UK) discusses how you can make it truly effective.
Recognition
It’s never nice to feel ignored if you’ve worked hard on something. Praising someone after they have completed an important project will increase satisfaction and will likely drive motivation for future efforts.
There is a famous quote, attributed to the American Football coach Vince Lombardi: “Praise in public, criticise in private.” This holds very true for business. It’s great to praise someone in a team meeting, or in an email where other people are copied in. If you want to tell an employee they’ve not done something to your satisfaction, find a quiet moment to speak to them by themselves, and definitely don’t hit “Reply All” on an email if you are going to be critical of them.
Accountability and recognition are two sides of the same coin. A key part of the manager’s job is to recognise good work and highlight it. Their team’s job is to be accountable for their continuous personal development, which needs to be guided by the feedback received from their manager.
It’s really important to reward good performance – this article looks at some different ways to reward your employees. But there needs to be a balance between recognition and constructive feedback. It’s easy to give positive feedback, but good performance management should always be aiming for improvement, so constructive suggestions are important too.
How to Address Poor Performance
Addressing poor performance can be an uncomfortable situation for both parties, but it’s essential for good performance management. When having the initial conversation, the manager should remember to approach the topic carefully and be calm and impartial. This helps to keep the communication open. It can be helpful to let the colleague know in advance that you need to speak to them about their performance. This gives them some time to prepare themselves, rather than surprising them which could cause them to feel ambushed. Be ready to discuss how to move forward. Never give criticism without offering advice on how to improve.
Here are our 4 key steps for improving poor performance:
- Identify the root cause – is it a conduct or capability issue? Are there organisational or management factors to take into consideration?
- Set clear improvement goals – what steps need to be taken to make an improvement?
- Monitor progress – how far towards the goal is the employee 1, 2 and 3 months after the problem was identified?
- Document everything – when was the problem first addressed? What actions were suggested for improvement?
Performance Reviews?
Performance management isn’t just an annual review. Only setting yearly goals isn’t very helpful: people forget, and a LOT can change in a year. This won’t keep staff engaged or motivated and it can suggest that the company isn’t really invested in it, that it’s only being done because it has to be done.
A yearly review as part of a bigger structure of continual performance development is a great way to look back at how far each staff member has come, congratulate them on things they have done well, and look forward towards any long-term goals.
Setting Goals
Different goals will require different timeframes. Career Development Plans are really helpful for looking further ahead, whilst specific smaller goals may be better for shorter term achievements.
Setting goals should be collaborative between the manager and the employee. The manager will need to consider the wider aims of the company as well as the individual’s improvement, whilst the employee should be thinking about their own personal and professional accomplishments and aspirations alongside goals that are specifically related to their role.
Conclusion
By fostering an ongoing culture of feedback, setting clear expectations, and addressing issues promptly, you can create an environment where employees feel supported and motivated to grow. Ultimately, investing in performance management isn’t just about measuring success – it’s about nurturing the potential within your team to meet and exceed organisational goals. With the right systems and training in place, you can empower your managers to lead with confidence and ensure that performance management becomes a seamless, effective part of your business strategy.
vivoHR can help you to structure an effective performance management system as well as provide training for your management team. Our vivoHR People Plan could be exactly what you need. Contact us on 01252 757359 to find out more, or drop us an email at [email protected].