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Why Is Performance Management Important?


Improve progress toward goals and team objectives with effective performance management.

Performance management encompasses the process of improved progress toward the goals of your organization—but, how to do this? Involve your staff and team in goal-setting, while evaluating these objectives to ensure all are in line with your company mission. The key in performance management is feedback, both from managers and staff, to identify issues swiftly while keeping distractions at bay and maintaining focus on the goals set.

So, why is performance management important?

Resolves Employee Issues and Concerns

Consistent performance management allows managers and supervisors the window of opportunity to identify and resolve employee issues quickly. Technology makes it possible to track day-to-day performance in an effort to tease-out any problems while keeping the team on track. Office emails, casual check-ins, in-the-moment conversations and more formal performance reviews are some effective approaches.

Appraises Employee Performance

Perhaps the most compelling element of performance management for team leaders is the ability to garner a snapshot on individual and group productivity or progress. This sets the stage for employee rewards and reprisals, as needed, to enhance overall progress toward objectives. While an annual bonus is nice, unexpected rewards for a job well-done are inspiring and appreciated by staff—which may manifest itself in increased engagement and productivity at work.

On the flipside, performance management may also help identify team members that may not be performing as well as usual. Is there a reason? Do they need an incentive? Swift intervention when someone is not performing to their potential can stop this from impacting the team or taking focus off the task at hand.

Sets a Standard and Opens Doors

Perhaps the biggest complaint that employees and staff have at their workplace is that they do not feel heard by management. Performance management provides the feedback that is lacking in many work environments, providing the opportunity for constructive criticism and input that could make many employees much better at their jobs. This feedback demonstrates an appreciation, too, for a job well-done, which can go a long way toward motivating the team toward new objectives.

A schedule of performance interactions at designated times, and otherwise, enables staff to share their own thoughts, insights and opinions. This exchange of perspectives during the review process can help address concerns before they burgeon into full-fledged issues that compromise productivity and workplace satisfaction. Many staffers voice that they look forward to these interactions to air their concerns and be heard by members of management.

Promotes Solidarity & Growth

When people on a team strive toward common goals and are recognized for their achievements, it can promote a sense of solidarity that creates a feeling of loyalty and camaraderie. Give individuals the chance to shine with separate challenges or objectives but reinforce the performance of the team with rewards or recognition that help instill pride in a job well-done.

This also helps those who want to rise up and step up to take on more responsibility within the organization. Providing the team with ample opportunities to shine creates an environment that is productive and goal-driven. Choose metrics for your performance management that allow you to assess the performance of the team as well as the individual to promote and reward those that are due.

Develops Leadership

As for motivating members of the team, performance management allows leaders the chance to work toward developing tomorrow’s supervisors. Some advanced planning can help to bring staff skills up to speed and prepare them for more complex assignments and endeavors. Many prospective hires will be attracted to a work environment that allows them the chance for upward mobility within the company.

Helps Boost Morale

Naturally, supervisors want to create a pleasant work environment that fosters loyalty among staff; it not only draws in new talent, but it also improves productivity among the team. Performance management provides a purpose and acknowledges the work of each team member. When someone feels like their contributions matter, they shine. Help your team shine with the support and engagement that performance management facilitates.

The key to effective performance management is for HR professionals to consistently process and review performance. While annual reviews are one tool to use in performance management, this is not sufficient for improving productivity and progress toward company goals. Use a variety of methods, both planned and unplanned, to engage with employees and staff. And be sure to track and monitor progress.



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