Jen Patterson, owner of Patterson Consulting Group, is known for her ability to inspire leaders to take a people-first leadership approach.
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In any successful organization, effective performance management is vital. This process includes a variety of actions aimed at ensuring employees are achieving their objectives and contributing to overall business success. In my career, I've found there are three critical factors of performance management: well-executed performance reviews, proper goal setting and goal tracking efforts and strategies for getting struggling employees back on track.
Types Of Feedback For Successful Performance Reviews
Formalized performance reviews are essential to maintaining a motivated, productive workforce. They're an opportunity to help employees synchronize their efforts with the company's strategic goals. For effective performance reviews, there are a few types of feedback to include.
• Consistent Feedback: Regular check-ins and feedback sessions can significantly impact employee engagement and performance. According to Gallup, employees who receive consistent feedback, especially on their strengths, are more engaged and have a higher retention rate.
• Employee Self-Assessment: Employees who actively engage in self-assessment during performance reviews tend to have higher job satisfaction. This is likely because encouraging them to evaluate their own performance fosters a sense of ownership and accountability.
• 360-Degree Feedback: Often, when organizations include 360-degree feedback in their performance reviews, they see an improvement in employee performance and engagement. This multi-perspective approach to feedback can provide a more comprehensive view of an employee's strengths and areas for improvement.
Here's an example of using feedback effectively in a performance review. Emily, a marketing executive in a digital advertising firm, received a commendation from her manager for her exceptional project management skills and innovative campaign strategies. Then, she was encouraged to work on her data analysis skills because they would likely improve her campaigns' impact. Motivated by this thorough examination of her performance, Emily enrolled in an advanced data analysis course. Once she applied her new knowledge to projects, she significantly improved campaign precision and effectiveness.
The Benefits Of Setting And Tracking SMART Goals
SMART isn't just a buzzword when it comes to goal setting. It's a practical tool that drives positive change and growth, making it an essential component of any successful business strategy. Making goals specific, measurable, achievable, relevant and time-bound offers a clear and focused road map for both employees and organizations, enhancing motivation and productivity.
Statistics show that only 3% of adults set clear, measurable goals, yet their success rate compared to contemporaries who don't set goals is tenfold. A study by the Dominican University of California found that more than 70% of people who sent weekly updates to a friend reported more success compared to those who didn't share or document their goals. Regular tracking and sharing of progress can be a game-changer in goal achievement.
Sophia, a skilled graphic designer, received a goal from her manager to enhance her skills in web animation. Her target was to complete an online animation course in three months and implement these skills in two client projects. Sophia diligently pursued this objective, guided by her manager's recommendations, and she was able to exceed the goal by using her new skills in four client projects. The positive feedback and increased user engagement showcased her dedication and inspired her colleagues to pursue further skill development, fostering a culture of continuous learning within the design department.
How Improvement Plans Support Performance Management
Performance improvement plans (PIPs) help employees struggling with their performance get back on track. These structured plans provide underperformers with clear objectives and open communication, and it's an opportunity to align their goals with the organization's objectives. Here's why PIPs matter.
• Development And Growth: A performance improvement plan can help unlock hidden potential and transform struggling employees into valuable contributors. So it should be seen as a coaching moment and a catalyst for growth. When implemented effectively, employees will see PIPs can be an opportunity for skill development and career progression.
• Legal Protection: Statistically, when termination due to poor performance becomes necessary, having a well-documented PIP significantly reduces legal risks associated with wrongful termination or discrimination claims. To mitigate risk, organizations must ensure PIPs are specific, make an effort at accommodation and have room for employee feedback.
Here's a PIP success story. Joe, an employee at a tech startup, encountered a performance dip due to personal circumstances. Instead of taking punitive measures, the company provided a structured PIP that included mentorship and flexible hours to help meet Joe's needs. Thanks to this support, Joe regained his productivity and exceeded the PIP's goals within the agreed timeline. This approach also fostered the company's culture of support and understanding, leading to improved employee morale and performance across the board.
Performance management is a dynamic process that contributes significantly to an organization's success. Companies can create a motivated, high-performing workforce by optimizing performance reviews, supporting proper goal setting and using performance improvement plans effectively. This will help ensure employees feel valued and motivated to contribute to overall business objectives.
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