A company’s performance management process is integral not just to the operations of the business, but also to the relationships developed with, and among employees. Having a clear performance management plan in place sends a strong message to your staff that the organisation is invested in the professional development and career growth of its people - an important factor underpinning employee motivation and loyalty.
Learn the benefits of a comprehensive performance management process from performance reviews to making promotion decisions and managing pay rises.
The performance management process – integral to the success of your company
Having a strong performance management process in place is more than a human resources responsibility. It is tied to the operating success of the company, providing a framework on which bonuses, pay rises, and salary reviews are based, and this in turn directly impacts staffing costs.
Having a clear performance management plan for each employee provides a transparent framework for every staff member to know how well they have performed, where they can improve, which areas they need further training and professional development in – and how the company will support (and reward) them to grow and develop in their career.
Recognising when an employee is ready for a promotion is an important part of being a manager – leaving high calibre talent in the same role for too long can see them asking questions about their future with the company. This makes it essential to recognise the attributes that show a staff member is ready to take the next step.
Recognising which employees deserve a pay rise can help you retain your best talent. But sometimes you may be approached with an unexpected request for a salary increase, and it’s critical to know how to handle the situation professionally yet with empathy.