5 business benefits of good performance management

Most people really do not enjoy performance management at all. It’s time-consuming, confronting and awkward. Well, it can be for the vast majority of our clients.

To be clear, when we talk about performance management we are not talking about performance appraisals. We are looking at managing the performance of someone who is not delivering what the business is needing or what management is expecting. We will address career development and performance appraisals in another blog as performance management comes with generally negative connotations so we tend to separate the two out.

Performance management can be tricky but ONLY if the issue/s are left to ‘sort themselves out’. If this happens, the whole process can be very time-consuming and painful for all concerned.

Let’s look at the benefits to a business when performance management is tackled correctly.

  1. The biggest benefit to a business when performance is managed properly is that time is saved. As soon as the performance management is left to slide, time gets sucked up before your eyes and time of course results in $$$.
  2. Good performance management tackles expectations prior to anything going wrong. What we mean here is getting your culture, values and expectations very clear from the start. If all of this is sorted and you’re communication is clear, the company will have far less management issues to start with.
  3. Good performance management is critical to ’employee engagement’. Yes, this is a bit of a buzz word about town at the moment but to break it down, it basically means keeping your people because they want to be there and you’re happy to have them in the same boat as you!
    • If your superstar people see poor performance or behaviours managed poorly they with feel a sense of insecurity in the business either subliminally or consciously. All human beings whether they are 2 or 70 need boundaries and if these are not clear, lapse, or are not followed/executed properly people will feel uneasy and your ‘boat’ will be rocky. You could lose the wrong people in the process. This costs time, brand reputation and $$$.
  4. Smooth operations and efficiency will result in higher profits are the end result of clear, concise, fair and consistent performance management processes. It’s essential that you lay ground rules through strong position descriptions, expectations and appraisal processes all underpinned by company values which can be demonstrated to ensure you nip any issues around behaviours/performance early on.
  5. Trust and faith in the business will be far higher if the performance management of employees is handled correctly.

We hope these tips are helpful for you and that you can see the benefits of having an expert alongside to guide and support as it’s not a given that people know what they are doing here.

Most managers are not equipped too well in this area as their core skills are not performance management. To discuss how your business can implement an effective performance management system with the help of Coaching Combinations, get in touch either by phone on (08) 6188 7502 or by email here.

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