In today’s business climate, public organizations are putting more emphasis on employee performance. In a climate of restructuring and downsizing, top performers are prized. And, with fewer employees on the payroll, managers are realizing they need to give extra attention to managing the performance of those who remain.
Clear expectations and outcomes, regular feedback, and praise and recognition are all no-cost tools that must be employed if an organization expects to thrive and prosper in this time of few resources. In fact, Bersin and Associates recently released a study that reveals that performance management is now at the top of organization’s priority lists. Forty-two percent of organizations have consistent, enterprise-wide practices for performance management. Another 29 percent have a process that is used by most groups throughout the organization. However, that leaves up to 30 percent of organizations with inconsistent or informal performance management practices.
This is troubling because the research also shows that organizations with defined performance management practices have experienced less downsizing, lower turnover among high performers, and, in for-profit organizations, twice the revenue per employee as organizations with informal or inconsistent practices.
The moral of the story is that if you are looking to do more with less (more productivity with fewer employees) it makes sense to look first to your organization’s performance management practices. Are the expectations for employee performance clear? Is feedback and coaching offered on a regular basis? Do employees clearly understand how their contributions add value to the enterprise? Are managers and supervisors confidently guiding the performance of each individual?
A few tweaks, a renewed focus, or a little training might be all that your organization needs to reap the benefits of a strong performance culture. What is your performance management system doing for your organization?