Re-shaping Performance Management


Performance management has been a popular topic of discussion within organisations recently, with 96% of surveyed organisations having recently changed or planning to change their system within the next 12 – 18 months. As companies struggle with leadership, engagement, and capability challenges, they are realizing that the performance management process affects all of these challenges.

Many employees and managers are feeling dissatisfied and frustrated with the current performance management systems. However instead of completely over hauling current systems, the way to change will most likely require organisations to evolve the practices they already have in place.

New performance management models are now becoming imperative as businesses update and improve their talent solutions. Companies leading this transformation are redefining the way they set goals and evaluate performance, focusing heavily on coaching and feedback and looking for new technologies to make performance management easier.

Some essential changes are needed but some of the original elements should remain the same.

Here are a few things to keep in mind when changing your performance management strategies:

• Performance management is changing, not disappearing with the focus shifting from annual assessments to more continuous dialogue. The performance information gathered will be more constant and more relatable to what employees are doing at that moment instead of reviewing what they did six months to a year ago.
• Corporate culture and values are to become more closely aligned, with employers encouraged to enabling employees to do their best instead of “fixing” their performance.
• Different techniques for different areas of the workforce. Different jobs require different performance management criteria and systems.
• Disposing of the performance rating. Rating your employees is not helpful or productive. If ratings are not eliminated completely, they should at least be simplified into broader categories.
• Separate performance from rewards. Fixed approached based on performance ratings are dubious, especially when objectives are conditional or achieved through team collaboration.  Assessing someone’s skills produces inconsistent data. 
• Continuous feedback - the regularity, emphasis and quality of communication will change to enable more real time conversations about how the employee is going.
• Mobile technology should enable more immediate and personalised feedback.
• Managers need training to become leaders. Manages who have received development to become better mentors and coaches will focus conversations on capabilities and performance than faults or issues.
• Simplicity is the key. Much of the current performance management processes involve filling out paperwork, evaluating job rankings and developing unrealistic goals. The information that was gathered had little practical application for managers or team leaders. 

One on One with the Boss

Most management conversations happen during group meetings, emails. Over the phone or when a problem arises.

However, it is good practice to meet with your boss one on one more frequently to get a little advice, support and motivation.

The main goal of a one on one meeting with your boss is communicating with them about the work you are carrying out for them.

• Before you go into a meeting with your boss ask yourself the following: 
• Are there problems that haven’t been spotted yet? 
• Problems that need to be solved? 
• Resources that need to be obtained? 
• Are any instructions or goals not clear? 
• Has anything happened since we last talked that the boss should know about? 
• Are there questions the boss needs to answer? 

Here are a few tips for making the most of a one on one session with your boss.

• Be prepared – make notes about what you would like to discuss with your boss ahead of time. If you have a problem to discuss bring your recommended solution, likewise if you have a decision to be made, make your recommended decision known.
• Keep your boss informed of all the key things you have been working on. This is a good opportunity to highlight your accomplishments and get some guidance and coaching from your boss.
• Own up to your mistakes. If you are having a meeting due to a mistake you have made, don’t be afraid to own up to it and make yourself accountable. Do not try and pass the blame or point the finger at your colleagues. 
• Always try to have a positive attitude in meetings with management. It is not productive or helpful to go into a meeting with a negative state of mind and you will cover more ground in your meeting if you stay upbeat.
• Include career development as a regular agenda item in your meetings. This will help you determine and achieve your goals as well as demonstrate to your boss that you are ambitious and have a desire to improve.
• Ask for feedback. Many bosses find giving feedback uncomfortable but by asking for it you are opening the lines of communication and making them feel more comfortable. 
• Let your boss know what you need in order to be successful. If you let your boss know in a constructive way how they can support you, most will do what they can to help.

The Benefits of Implementing a Performance Management Strategy

A performance management strategy is important for the improvement of the overall structural performance of a company by managing the performance of both teams and individuals to ensure the achievement of organizational ambitions and goals.

A successful performance management strategy can play a vital role in managing the performance in an organisation by:

• Making sure that the employees understand the importance of their contributions to the company’s goal.
• Ensuring that each employee understands their role within the organisation and what is expected from them.
• Identifies if employees have the specific skills needed to fulfil the expectations of their job.
• Facilitating effective communication throughout the organisation.
• Encouraging a pleasant and harmonious relationship between managers and employees.

Performance management strategies can have a positive influence on employee engagement and job satisfaction by

• Providing honest and open job feedback to employees
• Establishing a connection between performance and compensation.
• Providing learning and developmental opportunities when they are needed.
• Establishing clear performance objectives.
• Providing opportunities for career growth.

Establishing defined goals and regularly assessing individual performances can help you to establish any major skill gaps, therefore helping you understand where extra training may be needed. A performance management strategy can help you evaluate the willingness of an employee to take on higher responsibilities and provide feedback to employees on their current competencies and where they might need to improve.

A common misunderstanding among managers is that behaviour and activities are the same as results. An employee may give the impression of being very busy but may not be actually contributing at all towards company goals. They may not, for example, be fulfilling their job using the latest or most time efficient procedures.

A performance management strategy helps to identify organisational goals and the measures that need to be taken to achieve those goals. It also helps to gage the effectiveness or efficiency and means of attaining these goals.

The results from the information collected from a personal management system have a wide variety of uses. They can help with setting standards for comparison with best practices in other organisations. They can provide you with a consistent basis for comparison during internal changes or restructures. It can also help you to establish results during improvement efforts such as employee training or management development. They help to encourage fair and equal treatment to employees based on their performances.

The Importance of Staff Retention

Many companies are now beginning to view employee retention as a critical issue. High Employee turnover increases expenses and can also have negative effects on company morale.

Implementing strategies devised to retain good workers can help counterbalance replacement costs and reduce the indirect costs associated with high staff turnover such as lost clients and loss of morale.

Employee retention has become an important topic for many reasons.

These include:

• Social media networking tools such as LinkedIn make it easy to observe new job opportunities or get poached by another company
• Costs associated with hiring new staff, advertising, interviewing and hiring etc.
• Training new staff
• Loss of productivity. It can take up to 2 years for a new staff member to reach the same productivity levels as existing staff members
• Loss of engagement. Retained employees who see a high turnover often get disheartened and lose engagement

The longer staff stay with an organisation, the more productive they get .They get to know the systems, products and learn how to work together as a team.

Many high performing companies have loyal employees and each company has its own strategies for retaining their employees.

Some of the interesting things to consider:

• Compensation is a factor but does not play as big a role as you would think. Over-compensation will not offset a poor work environment
• Job fit is significantly important. Hiring the right people for the right positions by realistically advertising job positions will save you a lot of trouble in the long run. If you oversell a job you can suffer from high staff turnover. Effective retention strategies often begin during the employee recruitment process. Employees are more inclined to remain with a company that fulfils the promises made when their employment offer was extended. Companies that provide a realistic view of their corporate environment, advancement opportunities and job expectations to new hires can positively influence employee retention
• The work environment and culture matter. Staff want to feel appreciated, comfortable and included in their place of work. Employees that enjoy what they do and the atmosphere in which they work are more likely to remain employed with their company

Implementing an employee retention program is an effective way of making sure key workers remain employed while maintaining job performance and productivity.


In the end the most prosperous organisations are those that respect their employees and invest in building an engaged work place environment.

Employers of Choice

In the past, employers looking to hire the best staff would offer higher salaries than their competitors. Now they are thinking out of the box in a bid to lure staff away from the competition with a range of perks. Some of these perks include paid parental leave and a day off for parents on their child’s first day of school.

A high salary is no longer the most important factor for many workers, many are now desiring a better work/life balance.

An employer who can offer an appealing workplace culture is more likely to attract and retain superior employees. The features of the atmosphere available at an employer of choice support the interests of employees and customers.

Here are some tips for becoming an Employer of Choice;

• Employ people with diverse backgrounds including indigenous and people from other cultures, women, gay and youth.
• Include all staff in management and leadership opportunities.
• Encourage high levels of satisfaction among staff.
• Strive to have a good reputation in the business and the wider community.
• Utilise reward and recognition programs.
• Flexible work practices.
• Career development programs.
• Involve employees in decision making.
• Family-friendly policies.
• Job Security. Employees are better able to concentrate on their goals and work if they are not concerned about losing their job.
• Respect: Your employees should always feel they are respected by their bosses and co-workers.
• Access to Information: Share information about the business with your employees, it will help to make them feel more involved and motivated.
• Work-Life Balance: work-life balance initiatives such as flexible scheduling choices, allow employees to work undistracted by family and life events occurring outside of the workplace.
• A recognisable brand – One which is associated with values that are supported by your company and employees. If a potential employee has not heard of you, they are less likely to consider you  their first choice for work. Ideally you want to attract employees with similar values to your business.
• Honesty and integrity - Treat everyone with the appropriate respect and professionalism that you would expect in return. Employers need to fairly develop and apply policies, treat all employees with the same regard and consideration, and make workplace guidelines clear and enforceable across the board.
• Create a community. Establishing a strong community in your workplace, which is positive and supportive, will provide a sense of belonging that will attract and retain the right people long term.

Engagement the key to improving business results

An employee who is engaged works with their colleagues to improve performance within their job for the benefit of the organisation. An organisation should work to develop engagement to achieve a symbiotic relationship between employee and employer.

By nurturing an engaged workforce your company can receive many benefits, including:

•    60% reduction in quality defects
•    16% increased profits
•    37% less absenteeism
•    18% productivity increase
•    12% customer satisfaction improvement
•    25% reduction in staff turnover

Research confirms that engagement leads to higher financial performance, higher customer satisfaction and higher employee retention.

Senior leader participation is a critical factor for employee engagement. Good leaders create an environment of engagement .If senior leaders do not understand the importance of an engaged workforce your business can suffer because of it.

Higher levels of employee engagement in an organisation can unmistakably help improve business performance. To encourage a sense of engagement in a workforce it’s vital to have leaders that motivate employees and win their respect.

Leaders should act as role models and inspire employees.

There is a powerful connection between the level of employee engagement and organisational performance.

Consider using customer satisfaction surveys to assess the levels of staff engagement in your organisation. If customer satisfaction is high, it is likely that employee engagement is too. If customer satisfaction is poor, so is employee engagement. The results can help to prove to your management team the effects of employee engagement and encourage them to foster it in the workplace.

Disengaged workers can be the most harmful employees in the workplace. They are discontented and let that unhappiness show in words, attitudes and actions. They can undermine the performance of others by dragging down the morale and drive of the team. Improving employee engagement does not necessarily need to be expensive or time consuming.

Here are 3 effective ways of boosting staff engagement in your workplace:

•    Praise from supervisors
•    Attention from leaders
•    Opportunity to lead projects

Many companies are beginning to understand that engaged employees are a formidable source of competitive advantage.

An engaged employee is more enthusiastic to expend more effort into their work, put in more hours, brainpower and energy. They have more commitment to do the best job they can and take on roles with more enthusiasm and energy.

They bring original concepts and ideas and infuse their team with enthusiasm and are less likely to seek employment elsewhere.