Continuous performance and 360-degree feedback models have replaced most enterprises’ traditional annual performance and appraisal systems. To check on the performance, goal-alignment with the organization, and professional development, measuring and managing the performance of the employees through continuous feedback has proven invaluable. There are several reasons why you should incorporate such a feedback system in your organization. 

Why is Performance Measurement Important? 

An enterprise is only as good as its workforce, and the fair measurement of the performance of coworkers and managers is critical to business growth. Typically, performance is measured against three parameters – objectives, quantitative productivity, and productivity by profit. However, as the business grows, these three may not be enough, as they are more about productivity and not enough about employee performance. An underperforming employee hurts more than the profit or productivity. Underperformance redistributes the workload to the others in the team and increases the team’s stress levels while decreasing the team’s morale. 

Growing enterprises have employees performing different roles with distinct responsibilities. Comparing performance between members in such teams can be challenging. Fortunately, a robust employee management system can help define performance management parameters by enabling continuous feedback and assisting the employee self-monitor and course-correct wherever necessary.

Employee performance measurement and development 

Enables employee growth and development – Performance measurement alone will not enable growth. But, combining it with performance development through continuous feedback can help the employee self-assess and develop those skills that need improvement. Even negative feedback can be effective if it is delivered properly.

Goal alignment and business growth 

Employees function better when they have a 360-degree vision of the goals, be it their own or the organization’s. Managing the employee’s performance through feedback includes providing insight into the employee’s strengths and weaknesses with a clear idea of strengthening areas lagging. In this way, the employee can set their goals and align them to the team’s and enterprise goals. Measuring employee performance is also a way to optimize individual potential.

Building a culture around top performers 

Measuring and managing employee performance at work: Why it matters 

Performance measurement provides deep insights into what makes an employee successful and about performance levels. Building the organization’s culture around such performers empowers the employee and the team, keeping the high performers motivated and with longer staying power.

Building a culture of fair recognition 

A precise performance measurement process is a fair one. It also helps ensure compensation decisions, role trajectories, stretch goals, and internal role changes. When the process is fair, the low performers also get constructive feedback and targeting training to improve. 

With business growth riding on the performance of employees across all levels, performance measurement and management should be scientific and data-driven. Only such systems can mitigate potential biases while making the entire process transparent and ensuring high-performing employee retention.

How to build and retain high performers? 

It is a given that employees feel motivated when they have a goal to strive for and have the required guidance and support to reach their goals. 

Set goals/ OKR  

Using employee goal management software makes it easier to track, measure, and manage progress . Goal tracking also gives you greater visibility and critical insights into the progress. Such visibility can help the management to devise and drive growth initiatives. Moreover, the agile solution with actionable analytics and reports can be the answer to reaching the objectives and expected results. 

Appreciation and instant recognition 

A rewards and recognition platform is a great tool and acts as a springboard for motivated and better performances all around. Instant feedback is always preferred over delayed once-a-year feedback. Instant feedback also ties in smoothly with a continuous feedback system as it offers peer recognition, increasing employee engagement. 

Collaboration and digital feedback 

A continuous feedback platfor is conducive to collaboration and growthm. It is also the immediate recognition of good work and appreciation that boosts employee morale and productivity. Real-time conversations in one-on-one meetings keep communication channels open, enabling transparency and positive reinforcement. It enhances the work environment and fosters a growth culture.

Holistic understanding of employees with AI 

When it comes to people, we have emotions, interpersonal relationships, and the working dynamics in the enterprise. Fair performance management requires a deep understanding of the employee within the team and the organization. A tool with an in-built NLP-based sentiment analysis brings the necessary objectivity and rationale to the process. 

Employee engagement survey 

The best and most productive work environment is a people-friendly one. Using quick surveys to read the team’s pulse makes it easy to promote a strong employee engagement ethos and a healthy work culture.

Automated performance reviews 

Appraisal processes begin with reviews and end in appraisal letters, with many steps in between. An automated and intelligent solution is more expeditious as it streamlines the process and completes it with little to no HR interventions. 

To conclude: 

Performance reviews are meant to engage, encourage, and motivate employees to increase productivity and help them grow in the organization. And, when the review process also reveals how employees demonstrate the enterprise’s core values, you have a winning team across the board. Using a fully automated tool to ensure that the process is fair, streamlined, and efficient can help enterprises remain true to their core values even as they grow their business.

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