Performance management is a continuous process of communication between a supervisor and employee. Some of the steps include setting expectations, defining objective and goals, reviewing results and providing feedback. An effective performance management system is crucial for attracting and retaining talent. When successfully implemented, it can also boost an organization’s overall performance.
Interestingly, many companies are changing their approach to performance management.
According to PayScale’s 2018 Compensation Best Practices Report (CPBR), a full 10 percent of companies surveyed this year plan to eliminate traditional reviews.
However, the CPBR also revealed something else, something startling: Only nine percent of the 7,000+ respondents reported they currently use a real-time, ongoing feedback process. This is important to note, as the CBPR showed that top-performing companies were more likely than average companies to provide this type of real-time employee feedback.
Only 9 percent of respondents reported they currently use a real-time, ongoing feedback process.
If you want to join the ranks of the top-performers, you’ll need to commit to a modern, real-time, performance-based pay strategy that:
- Aligns performance to business goals and business cycles
- Ensures that employers are paying for results
- Relies on clear communication
- Incorporates creativity into the total rewards programs
A key to modern pay is a solid performance management system that’s focused on good communication and good relationships between managers and their employees. It’s crucial to get performance management right if you’re going to connect it to pay.
Want the step-by-step on managing pay for performance? Grab your copy of “Evaluating and Rewarding Employee Performance at the Speed of Business” today!
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Do you use an ongoing feedback process? We want to hear from you. Tell us your thoughts on performance management in the comments.