At the heart of a successful enterprise are teams of engaging and high performing talents. Employee engagement and performance play critical roles in ensuring the organisations can achieve their goals of continuous growth. In other words, from the initial recruiting process to onboarding, through employee development and even during the succession planning process, the organisations need to consistently promote and ensure high performance in every employee.
As a result, organisations need an effective performance management process in order to accurately evaluate the employees, and in the end, reward them handsomely or announce other talent decisions in order to keep motivating them.
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Many have pondered upon the question of how to do performance management well so that time-consuming HR related tasks (like data management and the likes) can be automated whilst add values to the development of an individual. More often than not, things are often left unresolved with more questions than answers.
Performance management vs. Talent management – what are the differences?
One might get confused between “talent management” and “performance management” as there are tons of similarities that make them overlap. Essentially, talent management is a broader term involving processes like recruitment, retention, development, and reward the employees. Performance management, in its simplest form, is the process of measuring and rewarding the employee for their performance.
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Employee performance management is a continuous process that requires constant monitoring and adjusting to help keep the employee’s results up to par and are aligned with the business objectives. When your employees receive appropriate feedback and rewards, they can be more motivated, more engaged in their daily work, thus ultimately, their performance is also increased.
Why is performance management essential?
Performance management helps set a clearer vision of the relationship between the employee and the organisation at every stage of his/her lifecycle. Data obtained from these stages can help aid the managers in creating a learning environment for the employees, notifying them of all the opportunities available within the organisation.
Advanced technologies have helped organisations tremendously in various aspects, and performance management is no exception. In today’s data-driven world, everything about a specific individual is unfortunately undermined. There are tons of information about the talents that organisations and the HR department have yet explored.
Through the use of the suitable management software, organisations can significantly reduce costs, time as well as the effort by putting the right people to the right position which can enable them to achieve their full potential, and the results can be used to plan for their future.
One of the most popular performance management tools would be the 360-degree feedback which can now be automated to collect and consolidate feedback from various sources in real-time to produce an accurate, unbiased evaluation on the employee’s skills and performance.