Why Performance Management Matters

Your business is growing fast, and it’s time to think about implementing or revamping your performance management process that will create an amazing employee experience and help drive your business forward. Your employees are your most valuable asset to help your business grow. So what can you do to engage your top talent, help them work smarter, and be more productive?

The most important thing about the Performance Management process is that it really is “all about people” – how they feel about their job, how others feel about the job they are doing, and where they would like to go from there. It is the opportunity to reflect, to hear, and to be heard. An effective performance management process can help in unlocking the talent’s full potential and thus results in better business performance.

Performance management is more than just an annual performance review. It is a continuous, year-round process where managers and employees work together to plan, track, and review the employee’s career goals, work objectives, and contributions to the company. An effective performance management process ensures employees get the ongoing coaching, feedback, and development they need to succeed in their roles and deliver the results you need to grow your business.

Here are 5 reasons why performance management matters and how it can improve the bottom line:

1. Aligns strategic goals

A well-designed performance management process helps employees understand how their work contributes to the overall success of the company’s strategy and goals. This connection makes sure employees know what is expected to keep them focused on the most impactful activities that provide real value to the business.

2. Drives employee development

Performance management ensures employees are continuously developing their skills and capabilities and have the knowledge and experience they need to deliver top performance and success for the business today and tomorrow.

3. Engages employees

Ongoing employee development empowers employees to take the driver’s seat for their own performance and career advancement while contributing to the overall success of the business. The business result of engaged employees is a higher level of employee satisfaction and retention, which means employees are happier, more motivated to work harder, and less likely to leave the company for competitors.

4. Encourages performance conversations, feedback, and recognition

An effective performance management process encourages managers and employees to have regular ongoing conversations about goals and expectations, accomplishments and challenges, as well as development needs. This ensures employees get the feedback and recognition they need to continue to improve and succeed.

5. Improves the bottom line

When done properly, performance management helps increase employee productivity, improve employee engagement, and reduce turnover, which ultimately lowers costs and improves the bottom line.

 

How can we help?

360factors, Inc. helps companies improve business performance by reducing risk and ensuring compliance. Predict360’s performance management software product, allows companies of all sizes to manage regulations and requirements, employee performances, policies and procedures, risks and controls in a single cloud-based platform. It enables automation through artificial intelligence.

 

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