Performance management and feedback are not only important for developing and improving employees internally, but they also play a crucial role in the recruitment process and retention of talented employees.
Through feedback and concrete performance management, employees are given a clear framework within which they can perform well. For existing employees, it's important that they receive constructive feedback on an ongoing basis - that way they have a clear direction to focus their efforts.
This can help develop the employee in a positive way, which further supports employee retention.
For new employees and the recruitment process in general, performance management and feedback is also essential, as the new employee wants to appear competent and aligned with the company's overall business strategy.
A clear framework is essential, which you can effectively provide through performance management and feedback.
In this post, we'll dive into the topic of performance management and feedback. What is it? How does it support employee recruitment and retention? And how can it also help develop a positive work culture?
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What is performance management?
Performance management is a strategic approach to ensuring that employees perform at their best and achieve goals for both individual performance and overall company success. It is a continuous process of establishing clear success criteria for work. This can include:
- Concrete goals and performance standards
- Review and assessment of the employee's work tasks
- Feedback based on the defined goals and performance assessment
- Recognition and further employee development - new goals and higher standards
The essence of performance management is to create a systematic approach to managing, measuring and improving employee performance in a way that aligns with the company's goals and strategy. This enables employees to know what is expected of them and how their performance will be assessed.
It's not just an annual review, but an ongoing process that involves both employees and managers. Continuous follow-up and evaluation of employee performance is an important part of performance management.
This can be done through regular conversations between employees and their managers, providing feedback, discussing challenges and successes, and adjusting goals and expectations as needed.
Feedback plays a crucial role in the performance management process. Employees need constructive feedback to understand how they are performing, what areas they can improve and what they are doing well. Feedback can come from managers, colleagues or even from employees themselves in the form of self-reflection. More on this in the next section.
Finally, performance management is also about recognizing and rewarding employees for their performance. This can be in the form of a raise, promotion, extra responsibility or something as simple as recognition and praise for their efforts.
5 tangible benefits of performance management
Performance management is good for many different reasons. Here are 6 specific reasons why your company should consider investing time and resources in establishing an effective performance management process.
- Boosts productivity: Performance management can boost productivity by setting clear goals and expectations for employees. It's important that the employees and managers involved buy into the idea of performance management - otherwise it can quickly lead to demotivation and employee churn, according to research in the field. Check out this scientific article by Grace Simpson, MSc. and Dr. Reckonel Simpson published in the Journal of Human Resource & Leadership.
- Improves job satisfaction: When employees receive regular feedback and recognition for their work, they are more likely to feel valued, which is directly related to their job satisfaction. The link between appreciation/reward and job satisfaction has also been described in the literature - see this scientific article by Swaroopa Dubisetty and K. Sreenivasulu Reddy published in the Journal of Management and Science.
- Identifies areas for development: Performance management and feedback can help identify areas where employees need additional training or support, which can lead to improved performance and productivity. By identifying any challenges, skill gaps or resource needs, managers and employees can work together to find the right solutions. This creates an environment where employees feel motivated and empowered to succeed in their roles.
- Stimulates collaboration: Performance management can stimulate collaboration within the organization. Goals and expectations are not just an individual pursuit, but should be a shared goal. By having clearly defined common goals, a department or group of people can help each other achieve the organization's vision and strategies, which can create a shared sense of purpose.
- Promotes effective leadership: In order to achieve the beneficial effects of performance management, it is essential that management sets clear frameworks and expectations, provides employees with constructive and useful feedback, and recognizes and rewards good performance. In this way, performance management promotes and necessitates effective leadership.
The role of feedback in performance management
Performance feedback - sometimes known as performance review - is an important part of the performance management process. It refers to the process by which an employee receives constructive and specific feedback about their performance against defined expectations, goals and standards.
The feedback can come from different sources, such as managers, colleagues or even the employee themselves through self-reflection.
The purpose of performance feedback is to give employees insight into their strengths, weaknesses, areas for development and potential for improvement. It also provides an opportunity to recognize good performance, which can have a positive impact on the employee's professional self-perception - which in turn can help motivate and retain the employee.
By receiving regular and constructive feedback, employees can adjust their behavior, improve their skills and achieve better results.
Effective performance feedback should be:
- Specific: Feedback should be precise and concrete so that the employee understands which actions or achievements have been successful and which areas need improvement. It's important to avoid vague feedback that doesn't provide clear guidelines - this risks the employee becoming confused about the company's expectations of them, which can make it difficult for them to reach a satisfactory level of performance.
- Constructive: Feedback should be given in a positive and constructive way that encourages the employee to develop and grow. It's not just about pointing out mistakes, but also highlighting strengths and suggesting concrete solutions or opportunities for improvement. Constructive feedback plays a crucial role in creating a positive and development-oriented work culture.
- Continuous: Feedback should be given regularly and continuously so that the employee has the chance to adjust their performance on an ongoing basis. Waiting until annual reviews to give feedback is rarely a good idea as it doesn't allow for immediate improvement - which is a missed opportunity for both the individual employee as well as the company as a whole.
- Dialogue-based: Feedback should be a two-way dialog. It's important to create an open and trusting communication channel where the employee also has the opportunity to ask questions, provide their perspective and discuss any challenges or concerns. Here, the employee can also take ownership of the defined expectations and goals, so that the performance assessment is not just an ideal that the company "drags down" on the employee - but rather a shared goal in line with the employee's areas of interest and competencies and the company's strategy and vision.
By implementing a culture of regular and constructive performance feedback, companies can effectively support the desire to learn, develop and continuously improve performance. It can also increase employee engagement and help retain talented employees. More on this in the next section.
Performance management: Retaining existing employees
Performance management can play a crucial role in retaining existing employees. By implementing an effective performance management process, companies can create a culture where employees feel motivated, recognized and experience professional and personal growth in their roles.
Performance management helps establish clear expectations and goals for employees. When employees understand what is expected of them and how their performance will be measured, they are more likely to feel confident and engaged in their work. Clear goals also give employees a direction to strive for, which can increase their motivation and job satisfaction.
To achieve fruitful results, regular feedback and coaching is necessary. By offering constructive feedback and support, managers can help employees improve their performance and develop their skills. This ongoing dialog creates a sense of appreciation and development in employees and can help build a strong relationship between employees and managers.
For the individual employee, performance management will also involve a concrete articulation of career goals and development plans. When the employee succeeds in reaching the set expectations, it is important that some form of reward and recognition is provided.
The articulation of a goal and the subsequent reward can be a powerful motivator for the employee, creating a more productive and efficient employee who will want to stay with the company.
Performance management can be a valuable tool for retaining existing employees. By establishing clear expectations, offering continuous feedback, promoting career development and recognizing good performance, companies can build an environment where employees thrive and want to be a part of the organization's long-term success.
Performance management: Recruiting new employees
Performance management is also a powerful tool in the recruitment process. By ensuring that new employees are well-informed, well-trained and have clear expectations of their role and performance, companies can achieve more effective onboarding and onboarding of new employees.
Clear expectations for new employees first and foremost ensure that the employee and company are a good professional match. Secondly, clear expectations also ensure that the new employee understands the criteria for success within the company.
It enables the new employee to understand their role and learn the necessary skills to perform their job effectively. This can include training on the company's values, culture, systems and working methods.
Of course, ongoing feedback, support and evaluation are crucial in this process. By establishing an open and positive feedback culture, companies can ensure that new employees receive the guidance, encouragement and direction they need to succeed in their role. Early evaluation and feedback allows for adjustments and adaptations to help employees achieve optimal results.
Read more about LEAD's Recruitment and Retention course
Do you want to be better equipped to recruit, engage and retain great people?
LEAD's course in recruitment and retention of employees in the public sector will fill your toolbox with concrete tools to work strategically and purposefully to create an attractive workplace, attract qualified candidates and engage and retain talented employees.
Sources:
Journal of Human Resource & Leadership, Managing the Performance Management Process: The Importance of Employees' Performance in Determining the Organization's Viability and Efficiency.
Journal of Management and Science, The Impact Of Human Resource Management (Hrm) Practices On Employee Satisfaction Level And Performance.
