Performance management is not the annual performance review that it once was. Performance management has transformed into a consistent conversation and feedback loop between you and employees. This allows team members to direct their own career development toward company goals. Performance management helps you understand the strengths and weaknesses of your team, then adapt to best utilize their core competencies. Employees will flourish when you start using performance management that is driven by ongoing feedback and communication. 78% of employees said being recognized motivates them in their job (Source) and performance management is a great way to identify those successes.
Once a year performance reviews aren’t cutting it anymore, yet many businesses believe that performance reviews and performance management is the same thing. Annual performance reviews only gage an employee’s performance and loyalty, and most times they are inaccurate. Performance management is an effective, communication-based process to engage employees while giving them consistent feedback. If employees only receive feedback once a year engagement levels can drop dramatically resulting in loss of productivity and higher turnover. Employees are 2 times more likely to be actively disengaged if they don’t get instant feedback from their managers and are likely to spread that negativity to others (Source).
Implementing performance management practices doesn’t have to be difficult. In fact, it’s as easy as implementing a performance management strategy driven by ongoing feedback and communication. Only 44% of organizations do an effective job of using technology to deliver the performance management process itself so companies have a lot of opportunity for improvement (Source).
BirdDogHR offers a performance management solution to help organizations transition from the annual performance reviews to effective and timely feedback at all times. Learn more about BirdDogHR Performance Management or view the Performance Management: Then vs. Now infographic.