Performance management is often overlooked as a process that adds value to a company. But how does it actually benefit the business? Dick Grote, the president of Grote Consulting, still has his first performance review from when he was 22, fresh out of school. It received mediocre criticism, with specific thoughts from his boss, Ray. Providing more feedback can help increase engagement and ensure that you have subordinates who can take over as retiring leaders.
Establishing leadership development programs and targeting people who show potential in project management, business acumen, team building, customer service, and innovation is key. The arrogance that implies that the workforce does not know what to do is one of the things that management does and that offends the workforce so much. The benefits of performance management are more important than ever after a year of ongoing disruptions and adjustments during the pandemic. The traditional model of performance management would be the annual evaluation, in which an employee and their manager would sit down for a performance review once a year.
Most performance management systems focus on qualifying employees to determine promotions, merit increases and rewards. Testing this conviction early in the process is essential if you are going to follow the path of true performance management, because without it you will fail and could also save effort. Taking an ongoing approach to performance management means you can spend valuable time ensuring that your employees are working toward goals and objectives that allow them to make the most of their skills and functions. Another key benefit of performance management is being able to identify areas of weakness where employees would benefit from increased training.
A robust performance management program allows you to align the work tasks of an individual employee with the company's strategic direction. Time and again, performance management is not considered to add value to the person's work experience or the manager's work. Therefore, you should be part of all conversations between team members, as well as between managers and subordinates. Performance management is becoming increasingly agile in recent years, and many organizations have shifted from the traditional approach to annual evaluations.
Investing the right time and management in your employees' careers will generate benefits for both of you.