Getting the most out of your people is not something that should be left to chance. Particularly if you’re a company with growth in mind. This is where a performance management plan comes in. Performance management covers a wide variety of methods that focus on improving your team’s abilities and keeping them motivated, loyal and accountable. It also helps identify areas that are ripe for development, whether it’s through regular feedback, or greater training and support. There is, however, no one-size-fits-all approach. Finding one that blends with your goals, values and company personality can pay dividends; both in the short and long term.
So, what do employers gain from having the right performance management system in place? Below, we’ve listed just four of the key benefits.
Improved Retention
If a team member leaves, they don’t just create an empty chair. They take the hard-won skills, knowledge and connections they’ve built up with them. Not to mention all the time you’ve spent training them. This makes retaining talent a key factor for any business.
Competitive pay and benefits are often seen as the main reason people stay; they certainly are important. But equally likely to affect their decision are areas like development opportunities and an understanding of the company’s direction and being fully onboard with that vision. Offering these to an employee means they’re more likely to seek personal growth with you, rather than taking their highly marketable skills elsewhere.
Engaging and Motivating Your Team
Contributing greatly to retention whilst also powering productivity, is your ability to engage and motivate your team. By setting goals and nurturing talented people, you keep morale high and make them more likely to be loyal to the company and its future. Successfully achieving this has been linked to ongoing feedback, coaching and demonstrating recognition of their contribution. It also helps reinforce a strong company culture; a powerful selling point when it comes to recruiting new talent.
Opportunities for Training
Put simply, well-trained people are more likely to do a better job, especially if they’re also engaged and motivated. A well-tailored performance management plan doesn’t just keep your team’s skills current and formidable, it also identifies those who require additional training – whether it’s for their current role or as part of potential future progression. Both of these are hugely beneficial to a business. Having a pool of talent that’s ready and willing for future possibilities makes them less likely to leave and more likely to be aligned with your goals, values and identity. A win, win situation all round.
Identifying Areas of Concern
Taking employees who are underperforming and changing that trend can boost a company’s ability to perform. The first step is identifying those whose ability doesn’t yet match expectation. Unfortunately, even experienced managers can find it difficult to address performance concerns without their intervention being seen as a slight on the employee’s abilities. Providing that person with the right support, however, stops a problem becoming an issue long before termination becomes a possibility. Better yet, it changes the underlying cause of the problem, whether it’s the need for more training, or a current gap in knowledge, into a workable strength.
If you’d like to discuss your own performance management plan, get in touch with one of our HR consultants.
