Incorporate these performance management tools to boost productivity, engagement and performance long-term
Human Resources is an agile and constantly evolving field. It is exactly this agility that allows HR processes to make a real difference to employees. Employee work-life balance, wellbeing and productivity is hugely dependent on the processes and systems we put in place as HR professionals.
So we need to be on the ball. It’s vital that we keep an eye out for emerging performance management trends while researching efficient tools to streamline existing processes and improve productivity levels.
With that in mind, at Advanced, we have spent some time researching the best performance management tools used by modern organisations. If you incorporate and properly utilise all the performance management tools mentioned below, the result will be a happier, more efficient and more engaged business.
1. One-on-one performance check-ins
If you want to follow in the footsteps of corporate giant Adobe, who reduced their voluntary turnover by 30%, you should look at introducing one-on-one performance check-ins. This trend is taking over and has now been embraced by companies such as IBM, Google, Cargill, HarperCollins, IBM and ITV.
Regular performance discussions throughout the year improve relationships between managers and employees while building employee engagement levels and boosting productivity. In contrast, the traditional approach to performance management has proven to be a serious waste of time and money. We predict that reliance on a single annual appraisal will be a thing of the past in a few years.
2. The 5As approach to goal setting
For a while, SMART goals have been the go-to in terms of goal-setting. Unfortunately, they don’t work for all organisations, and they only tell part of the story. Businesses today are complex, collaborative and rapidly-evolving. This new decade calls for a new way of thinking about objectives, which is why we at Advanced recommend the 5As approach to goal setting.
This performance management tool and objective process must be collaborative. Goals should be set jointly — and should be assessable, aspirational, aligned, accountable and agile:
ASSESSABLE: This goal can be measured, so it is clear when it’s achieved.
ASPIRATIONAL: An aspirational goal is stretching, encouraging employees to test themselves and develop, ultimately driving high performance.
ALIGNED: All goals within the organisation should feed into overall organisational goals and objectives.
ACCOUNTABLE: Employees need to know that they are accountable for the goal itself, and they need to understand if the goal is shared with other team members.
AGILE: Goals should be near-term (achievable within four months) and reviewed regularly to keep them meaningful and relevant.
3. Real-time feedback
Fair and accurate feedback is critical to great performance. Studies have shown that it can increase rates of performance by a staggering 39%. However, it isn’t simply the nature of the feedback that matters — timeliness is also an important factor. We now know that feedback is more efficient when it is given as soon as possible. Unfortunately, all too often, feedback isn’t shared for weeks or even months.
Real-time feedback has been associated with a number of benefits, including increased retention, improved recruitment, better performance and an increased ability to handle change. Thankfully, real-time feedback is achievable these days, with the advent of tablets, laptops and smartphones. Using performance management software, feedback can be given by peers and managers at any time.
4. Personal development plans (PDPs)
How much time and effort does your company spend on developing PDPs? According to research, personal development is a key driver of employee performance and engagement. In fact, 87% of millennials state development opportunities are a critical component of what attracts them to a particular company. To attract and retain the best of the best, the PDP is a performance management tool you will want to incorporate into your business.
PDPs aren’t a performance management tool you should simply pay lip service to, and then neglect for another year. Instead, managers and employees should create SMART PDPs that can be updated and reviewed online throughout the year. By encouraging this in their employees, companies benefit from a workforce that possesses a sense of direction and focus in relation to their careers.
5. Reward and recognition schemes
No employee works just for a paycheck. It has been shown that 80% of employees work harder when they feel appreciated, while many workers feel more motivated by appreciation than money. Further evidence suggests that high-recognition companies have 31% lower voluntary turnover than companies with poor recognition cultures.
If you are looking to engage your employees and inspire excellent performance, look into designing and implementing a reward and recognition scheme. Remember, even if you’re a startup, there are inexpensive but efficient ways of rewarding your team.
6. A wellbeing scheme
Did you know there is a proven correlation between wellbeing and employee productivity? Employees can’t perform at their best when they feel at their worst. They can’t be productive when they’re burnt out, overworked and overwhelmed. A forward-thinking organisation knows this and puts measures in place to cater to employee wellbeing. Some companies do this in the form of flexibility; some have wellbeing coordinators. Your wellbeing initiatives will vary depending on your company culture, your budget and your employees.
7. An excellent onboarding process
Does your onboarding experience engage new hires from their first day? Does it set clear expectations and help new starters build a positive, trusting relationship with their manager? If the answer is no, you need to overhaul your current process, as onboarding is where you set the tone for an employee’s entire career within your organisation.
A great onboarding experience is one of the most crucial performance management tools, with research suggesting that companies who get it right improve new employee retention by 82%. The process should include regularly scheduled check-ins between managers and new starters, where employees will be able to ask questions and raise concerns. Managers can also use this opportunity to set goals and keep track of progress. The best onboarding processes are long-term and ensure new staff have a clear understanding of what’s expected of them.
8. Employee surveys
According to a survey, 74% of employees report that they are more effective at their job when they feel heard. Employee surveys are a useful tool to gather anonymous feedback on engagement, company initiatives and wellbeing, which management and HR teams can use to take action and make key organisational improvements. As well as giving employees real-time feedback, it’s essential to accept it in return and be open to enhancing the employee experience. In addition to surveys, a suggestion box is another effective way to hear directly from employees and make them feel valued.
9. Engagement, wellbeing and performance management software
Evidence has shown that employee engagement, performance and productivity are closely linked. Knowing this, it makes sense to manage performance and employee engagement in one platform — which is what we offer with our performance and employee engagement software.
Employee engagement software helps managers and employees discuss wellbeing and engagement issues during their frequent one-on-one check-ins. With this software, you can gather employee feedback, analyse it and truly understand your company’s engagement levels. Getting a handle on employee engagement will inevitably have a positive impact on productivity.
At Advanced Clear Review, we provide modern performance management software to companies all over the world. To see how we can help you and your business, book a personal demo of our performance appraisal software today.