Nine out of 10 organizations believe performance management is important or critical to individual and organizational performance, according to 2019 Brandon Hall Group research.
In fact, our data reveals that organizations with effective performance management processes are:
- Five times more likely to see reduced turnover
- Three-and-a-half times more likely to see improvement in market competitiveness
- Three-and-a-half times more likely to experience improved customer satisfaction scores
- Three times more likely to see increased productivity
- Three times more likely to experience financial growth
The catch is that only about one-third of employers are seeing those results; almost 70% are in the process of restructuring performance management in some way.
So what’s the secret to impactful PM? Join us for a webinar on Wednesday, Nov. 13, How Employers are Modernizing Performance Management, sponsored by Reflektive. Rachel Ernst, Vice President of Employee Success for Reflektive; Toby Marcus, Assistant Vice President, Learning and Development, Protective Life Corporation and I discuss how organizations can quickly create better connections between managers and employees to get everyone in the organization recognizing meaningful contributions to building a culture of performance.
I interview a lot of organizations and found that most are confused about what performance management really means. It’s not about performance reviews, performance ratings or decoupling pay and performance.
It’s about understanding the potential of employees and developing it in ways that help both the individual and the company.
That doesn’t happen when 77% of organizations are looking at performance through a rear-view mirror. It happens when managers use frequent (weekly or bi-weekly) check-ins for coaching, which happens in only 42% of organizations, providing learning opportunities (40%) and discussing goals, expectations and success strategies (36%).
Most employers struggle to train managers to do those things. That takes time. But progress can be made by forging manager-employee interactions. It happens by enabling everyone to recognize employees’ meaningful contributions to build a culture of recognition and performance improvement.
Claude Werder is Brandon Hall Group’s Vice President and Principal HCM Analyst. He focuses on Leadership Development and Talent Management. Brandon Hall Group is a leading research and analyst firm with Practices in Learning & Development, Talent Management, Leadership Development, Talent Acquisition and Workforce Management/Core HR.
We are a human capital management research and advisory firm with more than 10,000 clients globally. For over 25 years, we have been delivering research-based solutions that empower excellence in organizations around the world. Our vision is to inspire a better workplace experience. Becoming a Brandon Hall Group member means our team joins your team. Membership provides a host of resources and services and – most importantly — a seasoned team of thought leaders and client support professionals dedicated to your success.