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In the competitive workplace landscape, organizations are constantly striving for ways to enhance employee engagement and foster loyalty. A key driver of this lies in the way performance management is delivered by leadership. Performance management is significantly relationship based – studies have shown that approximately 73% of today’s next generation of workers (Gen Z) state they would resign as a result of not receiving consistent feedback. The historic approach of once-a-year performance reviews may have overstayed its welcome; the current workforce demands a more agile/employee-centric approach. Effective performance management can serve as a catalyst for heightened employee engagement and unwavering loyalty.
Frequent and Meaningful Feedback
Employees crave regular, constructive feedback that highlights their achievements and provides guidance on areas that need improvement. However, giving someone feedback that is not all sunshine and roses can be uncomfortable. Many leaders are hesitant to provide constructive feedback for fear of how their employees may respond. The reality is that not every employee on your team has mastered every skill or behavior for their role, and as leaders it is our job to assist them in growing their skills. Incorporating frequent check-ins and informal conversations into the performance management process creates an open channel of communication, fostering a culture of continuous improvement. By providing feedback as soon as possible, leaders will come across as more transparent and employees have the benefit of real-time examples. Further, the employee is more likely to apply the feedback because they trust the leader is coming from a sincere position of “I want to help you”.
Goal Alignment and Clarity
Goal alignment and clarity is one of my favorite topics within performance management. Large scale organizations attempt to deliver it, but this can go sideways due to the pure volume of leadership touchpoints. Mid to small organizations can have an advantage on this due to smaller scale, but if not planned and executed well they too can miss the mark. So, what are we talking about here? Connecting employees work outputs to the organizational goals and objectives. Data today shows employees want purpose through their workplace – over 70% of employees feel that their sense of purpose is largely defined by their work. Interestingly enough, 85% of executives in a McKinsey study said they were living their purpose at work, whereas just 15% of front-line workers felt the same way. [1] So why are front-line employees not connecting with the company’s purpose and mission in the same way as executives? Has the organization taken the time to understand and define their purpose? How has the purpose of the organization been tied back to operations and connected to the front-line employee’s contributions? Employees must see themselves in the organization’s purpose to identify with it. Does the employee have similar values, missions, and priorities? [2]
Employees are more engaged when they understand how their individual goals align with the organization's overall objectives. This engagement in turn drives employee’s desire to stay with their employer as they see their purpose reflected in the organization. Establishing clear and measurable performance goals provides employees with a roadmap for success. This enhances their sense of purpose and ensures that their efforts contribute directly to the organization's success. Incorporating employees in the goal-setting process empowers them to take ownership of their performance. When individuals actively participate in defining their objectives, they are more likely to be committed to achieving them. This participatory approach enhances engagement by fostering a sense of autonomy and responsibility.
How Do We Root Employees into the organization through Performance Management?
From personal experience, nothing made me feel more “valued” by my organization than when they identified me as not just a competent employee, but one whose skills they would like to develop further. By them taking both the time and money to invest in myself, my skills and my future – it truly meant something to me. The mere opportunity of receiving training and development from my employer made me excited, and created a deeper desire to “crush it”. Investing in employees' professional development enhances their skills and signals to them that the organization is committed to their growth; it creates an emotional connection. Performance management should include discussions about career aspirations, skill development, and opportunities for advancement. Additionally, organizations that live a culture of continuous learning will keep employees from becoming stale in their skill set and help the organization move forward. Employees want to acquire new skills and be looked upon as up-and-coming talent.
Have you established a learning strategy and culture that makes learning Accessible, Accommodating and Attractive?
Accessible: employees can take learning on the go, meeting employees where they are
Accommodating: the organization encourages learning and places high value on it by making time for it
Attractive: high value content that will move the needle on the employee’s knowledge and ability to apply the depth of knowledge
I would be remise if I didn’t mention technology in the arena of performance management. But let’s be frank-or not frank, the technology will NOT do the work for you. It can augment (a leader’s transactional tasks) but it cannot replace a leader’s observations (of employee behavior and strategic abilities). Use technology as it is intended, but do not allow it to replace human interaction and emotions. Technology can be a tool in recognition and showing appreciation, but nothing goes further than a personal thank you and acknowledgment of an employee’s contributions. As organizations we tend to talk ROI, KPIs, OI and other acronyms for successful businesses, but we tend to gloss over the value of a human connection with our employees. Taking the time to recognize an exceptionally performing employee is an extremely strong motivator. Understanding how your employees want to receive recognition shows that you value them as a person. Some may want public recognition, while others prefer a more private thank you.
Effective performance management is a relationship that has been nurtured through the right conversations where both parties are engaged in the process. It is not about everything an employee has not successfully delivered, but a balance of where the employee is in their development journey and how leaders can help them navigate through this journey. We have all had some point in our career where we thought “I can’t do this.” I hope you had someone in your corner saying “Try, make a mistake, and learn from it. I’m here to help you through it.”
[1] Forbes Employees Want Purpose at Work: How to Deliver on This Priority. June 22, 2022
[2] Forbes Employees Want Purpose at Work: How to Deliver on This Priority. June 22, 2022