Why Growing Companies Need a Performance Management Strategy
For a business to enjoy sustained growth, employees need to remain engaged and productive. If performance stagnates, growth comes to a halt. Early implementation of performance management ensures a stable and supportive culture that fosters productivity. Here is how management teams can convince executives to implement a talent management system.
The Basics of a Good Talent Management Strategy
For an employee performance appraisal system to work, Australia and New Zealand companies must focus on several key elements:
- Ongoing training exercises
- Individualised goals
- Regular feedback
- Appropriate recognition of performance
Creating a plan that proactively addresses these points is just the start. Here are a few reasons why performance management software would be an organisation’s best tool for continued company growth.
1) Demonstrate Why Talent Management is Necessary
The global performance-management consulting company, Gallup reported that “employees whose managers excel at Performance Management activities are more engaged [by up to 70%] than employees whose managers struggle with these same tasks.” Such statistics make it easier to convince executives when they question whether performance tracking software worth the time, money and resources.
To make a strong case for utilising employee performance tools, it’s essential to put together a solid presentation that covers:
- Problems that the business is currently dealing with, including high turnover, low productivity, employee dissatisfaction or excessive absenteeism
- The cost of a management system compared to the expected ROI
- How every level of employee will benefit from simplified talent management solutions.
Business case presentations should include as many relevant facts and statistics as possible to establish the value of investing in and implementing tools to manage performance across the board.
2) Establish a Custom Learning Management System (LMS)
The LMS solutions provided in Cornerstone’s Growth Edition equips ANZ companies with everything they need for ongoing employee development. From unique employee profiles to in-depth reports on employee goal tracking software, this type of tool provides essential insights and information for employers looking to improve business performance.
A leading digital marketing and web content management platform for Higher Education in Australia, TERMINALFOUR, said, “It’s great being able to enter goals for employees and better manage performance and behaviour.” This is just one of the many ways that using Cornerstone and other management software can help employers stay on top of performance.
Before a system can be put in place, companies need to establish an understanding of which tools are necessary by:
- Communicating clearly with staff at all levels to uncover and address ongoing problems
- Mapping out how to set individual goals that benefit the company as a whole
- Reviewing goals and observing how current management practices are helping or hurting achievement
- Hiring outside consultants to conduct an objective assessment of the business
3) Tailor Talent Management Tools to Your Staff
Traditional annual staff reviews may not be comprehensive enough to provide a picture of what employees experience throughout the year. A better approach is to keep communication open at all times so that managers are consistent with feedback and staff members feel comfortable voicing needs.
Not all review types fit all businesses. Depending on the culture, job functions and objectives of a particular company, an ideal review system could fall into one of several categories:
- Feedback from managers
- Employee self-appraisal
- Multiple sources of feedback combined into one comprehensive review
Regardless of the chosen review style, it’s important to give each team member concrete objectives that will keep them focused when working. This not only provides a clear way to measure performance but also ensures that the entire staff is working toward the bigger goals of the business as a whole.
Using this framework for a talent management strategy creates a better atmosphere for employee engagement. Greater satisfaction and lower turnover makes growing a small business much easier by establishing the consistency required to continue moving forward.
Read the second half of “Why Growing Companies Need a Performance Management Strategy” to better understand how your workforce can improve employee efficiency here.