How to implement a continuous performance management process step by step?
Performance Management is a collective communication process through which managers and employees align together to plan, monitor, and review an employee’s work objectives and their contribution towards the long-term goals of the organization.
Let’s understand more about Continuous Performance Management, its significance, benefits, and the steps involved in implementing continuous performance management.
Difference between continuous performance management vs performance management
In recent times, most Agile businesses around the world turn towards continuous performance systems to overcome the inherited flaws of the traditional performance management methods. Continuous performance management is a comprehensive approach when compared to the annual appraisal. The manager and the employee get the opportunity to give and take real-time feedback often, build a healthy relationship with periodic one-to-ones, and set near-term objectives and goals.
What Is continuous Performance Management?
Continuous Performance management is an ongoing process, that happens throughout the year, by planning objectives, reviewing progress, and providing coaching and feedback to fulfill the employee’s career goals and objectives. Managers support employees with continuous feedback, devise training programs and tools that pitch in for self-development.
Why is continuous performance management important?
Continuous Performance management is well-chosen by most organizations, who look for an alternate method for the annual appraisals. In recent times, leaders realize the importance of the manager’s role in providing continuous feedback that acts as a foundation for modern business success. And because of the below importance, most of the companies turn towards continuous performance management methods.
#1. Effective goal setting.
Allows the employees to set their individual goals and align them with the organizational goals through regular conversations and discussions with the managers. These goals are set through OKRs (Objectives and Key Results ) or SMART goals, with few ways to track the progress on their own.
#2. Encourages communication between Manager and subordinates
When Managers and employees get the chance to give and take consistent feedback, the relationship and the trust between both levels strengthens and they drive towards the organization’s goal effectively. On the other hand, they figure out the area of improvement, and training is provided to enhance the skills.
#3. Healthy work environment
The continuous Performance Management system provides a healthy platform for managers and employees to collaborate, converse and discuss their objectives and goals. A regular feedback system helps them to identify where they stand and what they have to improve to accomplish their goals.
#4. Improves Employee Productivity
Employee productivity tends to increase where is transparent feedback, healthy relationship and get independence in setting their goals. A Continuous performance management system gives the platform for the employees to have healthy competition within departments. When their performance is rewarded and recognized, employees’ work-life is happier which in turn increases their retention.
#5. Saves time and money
Companies spend huge money and time in retaining and hiring employees. Continuous performance management reduces attrition rate and employees are more loyal when their performance is recognized and rewarded through periodic assessments.
Continuous performance management has diverse benefits when compared to conventional performance management methods.
Types of process
A continuous Performance management system can be effectively followed by the following key features,
- Check-Ins – Continuous feedback improves the trust and relationship between the employees and team leaders. Managers initiate the discussions to keep the employee’s performance on the track.
- Priorities – Employees get the liberty to set their objectives and key results in focus with the organization’s goals.
- Performance Dashboard – To access the performance and recognize the outcomes in a single dashboard where the comprehensive view of Check-ins, goals, feedback, and an annual summary is exhibited.
- 360-degree feedback – Employees learn and grow with continuous feedback from their network of Managers, trainers, mentors, and colleagues to improve their performance.
- Summary reports – Managers can use the any-time summary reports to guide the employees with fruitful discussions periodically.
How to implement continuous performance management