Why is performance management important?

Good performance management is important for all businesses. Why? Effectively managing performance and ‘setting the standard’ will help your business achieve its strategic objectives by aligning employees, resources, and systems with the organisation’s overarching goals and values.

While managing performance is essential to workplace success, many teams need a strategy that goes beyond basic evaluations. Effective performance management incorporates a complete system of goals, reflections and rewards that enables teams to do their best work.

Carrying out your performance management system may need to be more creative in this COVID period and you may need to conduct performance meetings via video-conference and/or implement new systems for the oversight of work. However, we know this is a worthy investment.

If done right, performance management has a direct impact on the efficiency of an organisation’s teams by providing team members a chance to improve their work. By effectively empowering teams to succeed in both the short and long term, a business can reduce its costs and grow the bottom line.

How can I build an effective performance management system?

Performance management systems can take various forms; and are often redesigned, re-launched and abandoned on numerous occasions within an organisation.

Essentially, the key to a valuable performance management system is to ensure all staff commit to the system, as opposed to merely complying with isolated conditions and protocols. 

To do this, they need to understand how it works as a business tool – particularly each of the components of performance management and their importance.

What are the components of an effective performance management system?

Planning

Planning helps a business achieve its goals. The same goes for staff. Clearly defining individual roles and responsibilities of employees, and regularly discussing measurable expectations and goals with them will set them up for success.

Coaching

Coaching helps foster training and development, and builds personal and team morale. It about supervising employees, and reinforcing or re-directing their efforts through recognition and feedback.

Evaluating

Evaluating employee performance helps remind workers what their managers expect in the workplace and track how they are progressing against their goals. It involves assessing employee performance against the criteria established in the planning phase.

Rewarding

Recognising effort and rewarding individual employee contribution and achievement plays an important role in staff engagement and a company’s culture. Rewarding staff for their hard work has a number of benefits including increased productivity, encouraging teamwork and helping you attract talented new recruits to your business. 

Disciplining

You don’t want a bad apple to spoil the bunch. Managing poor performance or misconduct is essential for business. It can also involve important learning and growth opportunities for staff and your business as a whole.

Workplace Wizards assists employers to proactively institute performance management strategies or can help organisations who are managing poor performance or defending dismissal-related claims.

Sadly, performance management does not correct the problem behaviour or conduct every time. If so, we can help you ‘move on’ the employee whom you need to dismiss – ensuring you manage it in a fair, empathetic and legally-defensible manner.

Managing an employee out of your business or defending litigation can be costly as well as resource intensive. 

How can we help?

All performance management systems require encouragement from strong leaders to help drive a workplace culture which values improvement. 

Workplace Wizards can assist you with creating and implementing performance management systems from the top down, protecting your business interests whilst saving you tens of thousands of dollars and hours in time.

For specialised assistance, contact at Michael Stafford on 0488 649 998 or at michael@workplacewizards.com.au to discuss how you can set the standard for your teams and make your organisation more effective.

Susanna Ritchie

Susanna Ritchie

Susanna is a Director at Workplace Wizards. Susanna has over a decade of experience in providing advice, training and support to clients in both private and government practice as well as conducting litigation in courts and tribunals.

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