While employees may dread performance reviews, good performance management is critical for progress and improvement. Employees that are engaged and performing well can be the essential driving force behind a successful organisation. The key? Regular, constructive feedback.

As CIPD UK define it, performance management is ‘a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance’.

It should foster a shared sense of accountability and an understanding about what needs to be done, as well as ensuring that goals are achieved.

PM Industry Insights point out in this great webinar that traditional performance management can place a heavy drain on time and resources, and that it can have a negative impact on employee engagement.

One of the main reasons why traditional performance management isn’t working is the quality of managers. Managers need to be able to have good, meaningful conversations with employees – to focus on what needs to be improved and what they’re doing well, in a constructive and open forum.

Another reason traditional performance management isn’t working is because it can be overly-focused on KPIs and overly retrospective. The tone then can become negative and emphasise what hasn’t worked rather than what the employee does well and what they can improve on.

As Forbes suggests, the objective of a performance management system should be to inform and motivate everyone in the organisation, and not to try keep everyone happy.

The Challenge of Performance Management

The main challenge of performance management is making sure that it’s fair! If employees feel that they are being judged or criticised unfairly it can lead to a bad atmosphere and hindered performance.

Managers need to be as objective as possible in their assessments of individuals. Personal biases are natural but as much as possible, they should not impact the performance review.

Another issue around fairness is ensuring that assessments are consistent throughout the business. Putting an objective measurement and a monetary figure on the value of people is no easy task. Check out how we do it in this webinar.

Performance management should be strategic – looking to the future with broad issues and long-term goals – and it should link people from different areas of the business. Emphasis should be placed on the continuous development of individuals and teams.

Ten Tips for Better Performance Management

1. Hold regular performance review meetings

Many successful organisations are jettisoning traditional performance management systems and moving towards regular feedback on an almost day-to-day or week-to-week basis.

The importance of this can’t be underestimated. As a consequence of the huge revolution in technology, we must remember to keep the human touch. Quantifying can be helpful, but face-to-face communication is really important for successful performance management measures.

2. Reflect on your performance management system

Don’t rest on your laurels. What’s working and what’s not working? Gather feedback from employees on the mode of performance management they would prefer.

If switching from a paper-based to an online system, keep the layout the same as much as possible, in order to avoid unnecessary difficulties for people who might not be technologically savvy. Keep it easily accessible and treat it as a new change management system.

3. Keep the purpose in mind

Performance management should improve business and improve the lives of people working in the organisation, at all levels. Although it may be a tedious, tiresome exercise, keep the benefits in mind. Ensure also that you gather both quantitative and qualitative feedback.

4. Treat people as individuals

Focus on the individual and aim for a holistic view. Avoid making generalisations about people and the methods they would prefer. Don’t make assumptions based on age. Just because someone is a Baby Boomer, it doesn’t necessarily mean that they would prefer a paper tool to an online tool!

5. Provide support for managers

Managers need to be coached and trained in how to move towards more of a coaching style and away from a commanding frame of mind. Ensure they know how to provide feedback in a constructive way, so that they don’t have a negative impact on employee engagement.

By providing managers and employees with a shared language to discuss skills, talent and behaviours, TTI Psychometric Assessments are a really valuable resource.

6. Give praise where praise is due

Award individuals for outstanding performance. Ensure a continuous cycle is set up where people are given reward and recognition throughout the year.

7. Keep it constructive, not critical

Good performance management should be done through a medium that works for the employee. It is constructive – looking at what can be achieved and improved – rather than critical, which focuses solely on what a person is doing wrong and what isn’t working.

It should be primarily forward-looking rather than retrospective.

8. Create and implement a development plan

TTI Psychometric Assessments provide an insight into a person’s skills, talent, behaviours, motivators and driving forces, as well as a development plan to further develop areas of strength. Ensure plans and goals are written down.

9. Keep salary discussions separate

Avoid holding salary negotiations and performance reviews in the same meeting. If combined, people could leave the meeting ruminating over the salary decision and forget about the development plan.

10. Encourage your employees to become self-aware

Employees who are aware of their strengths and weaknesses are in a great position to harness their intrinsic motivation and reach their potential at work.