Effective Performance Management Processes

Actual Comments on Why Employees Leave:

“Career path was very limited. Performance evaluations were required to be completed on-line, but only one boss in my six years with the company actually discussed my review with me. Why waste people’s time if the company does not make a concentrated effort to use this as a tool to improve and/or help advance an employee’s career?”

The Solution

This comment covers two items – career advancement and performance evaluations. Both items could have been attended to with an effective performance management process.

Performance management is the foundation of performance excellence. It is a comprehensive process that can lead to a high performing organization if it is linked to organization goals and objectives, is part of the culture through leadership support, and is executed well.

Key components of the performance management process include:

• Planning and goal setting –an inactive process for defining clear goals and desired performance. Individuals should be able to see how their work is important to the broader organization goals and objectives.

• Assessment and feedback – manager feedback and assessment of employees’ performance. Feedback should be provided through the year so there are no surprises during the annual process. Ongoing discussion between managers and employees will accomplish this task.

• Performance and recognition – determining the level of rewards appropriate to the individual’s performance and contributions. Rewards vary by organization and can come in the form of merit increases, bonuses/incentives, special awards to name a few. The size of the rewards is generally determined based on the organization’s ability to pay and employees’ performance.

• Development and career opportunities – development comprises of learning experiences designed to enhance employees’ skills and competencies. A learning environment where managers coach individuals will lead to performance improvements and individual growth. Career opportunities involve exploring and providing opportunities for employees to pursue their career goals.

(This blog post is brought to you by HSD Metrics, an exit interview company that helps companies reduce employee turnover by providing automated reference checking, exit interviews, and by measuring employee retention. The comments from exiting employees that are featured in this blog are collected from actual exit interviews conducted using ExitRight®, HSD Metrics’ exit interviewing service. If you are interested in learning more, contact us today. Because we place the privacy of our clients at the top of our priority list; the names of all involved parties are kept completely confidential.)