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Is a Lack of Performance Management Undermining Your Business?

Talent Management

Is a Lack of Performance Management Undermining Your Business?

October 06, 2016 Mike Erlin

A performance management strategy keeps everyone in your company on track to meet objectives for productivity and growth. More than just an isolated process, performance management must be integrated with other aspects of employee development, including an ongoing learning plan. Implementing a smart performance tracking system gives you a platform for managing employee talent and maximising resources throughout your business.

Why Invest in Performance Management?

Setting up workforce management software and assigning personalised skill-building tasks to employees may seem like a waste of time, but a study by Harvard Business School shows it pays off. Companies with solid performance strategies increased net income by 756 percent over the course of 11 years, but those neglecting the process saw only a one percent growth rate. Managers in these companies spend as much as 27 percent of their work time either fixing mistakes made by under-trained employees or providing guidance to avoid errors. A performance tracking system gives these employees the tools they need to succeed and contribute to the company rather than hampering its efficiency.

Creating a Better Performance Management Strategy

You already have high-performing employees within your company. Implementing talent management helps you identify these individuals, pinpoint their strengths and create a benchmark for future hiring. Hiring in light of the competencies necessary to achieve company goals keeps your business moving forward at the desired rate. When you integrate your performance software with a recruitment platform, it’s easy to find the best candidates.

Since high performers provide 26 percent of your company’s output, it’s critical to know what you have and what to look for in the future. Improving performance with customised learning plans and feedback encourages existing employees to strengthen their skills and shows newcomers your company is strongly invested in their careers.

Leveraging Talent Management for Exceptional Results

When employees feel their supervisors and managers show a genuine interest in helping them improve skills and move up in the company, they become more engaged in their jobs and within the company culture. The resulting improvement in work environment further drives individual growth and encourages creative collaboration. Employees begin to connect with colleagues in more productive ways and approach the daily challenges of the company using the skills they built during performance exercises.

Proper talent management also ensures candidates for hiring are a good fit for the company culture. Bringing in complementary personalities preserves the positive atmosphere and eases the transition for new employees as they become familiar with their jobs.

Using Performance Tracking Systems to Deliver Feedback

Making consistent feedback part of your performance strategy creates a more highly engaged workforce and improves retention rates. About 71 percent of employees appreciate quick feedback on performance, and 43 percent of those identified as the most engaged get such responses at least once per week. Make sure your personnel tracking software includes an option to provide 360-degree feedback from everyone in the organisation. Using this style of performance review instead of restricting feedback to an annual report shows you and your staff where changes can be made to improve productivity right away.

Implementing and managing a successful performance management strategy requires a powerful solution such as Cornerstone’s personnel tracking software. With the option to integrate with a learning management system and assign modules to bolster specific employee skills, Cornerstone Performance has what you need to strengthen every member of your team. Feedback tools and recognition badges ensure consistent engagement to make the process more fulfilling for employees, creating a more positive work environment as everyone on your team works to improve competence.

About Mike Erlin
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