HCP Conversations Knowledge Series – Let’s Talk About Performance! (Part 3)

In the third of the HCP Conversations Knowledge Series – Let’s Talk About Performance!, the panel, joined by representatives from TAFEP, HCPartners and industry experts share their views on how performance management can drive business success and how the performance management process can evolve to drive sustainable organisational growth. This article is the last instalment in this three-part article series. 

Driving a Sustainable Performance-Based Culture: Panel Discussion

The panel discussion covered 3 key themes:

The Importance of Empowering Managers

As a key stakeholder to driving a successful performance management strategy, people managers play a significant role in shaping a culture where performance management is viewed as a long-term talent development process. This includes

• Viewing your people manager as a developmental coach, and putting in resources and training to develop them.
• Encouraging managers to invest in performance conversations throughout the year, maximising each touchpoint as an opportunity to provide feedback and guidance for employee growth. 

Managing the Impact of COVID-19 on Performance Management 

COVID-19 has seen businesses readjust their performance management process as employees work from home, reset and reprioritise performance objectives. It has heightened the importance of clear goal setting and cascading, so that employees continue to be aware of and work towards the KPIs and targets set out for them, regardless of working arrangements. This amplifies the importance of “everyday performance management” through check-ins to understand how employees are coping, and providing timely support and feedback to help them meet individual and business goals.

In times of business downturns, motivating and engaging employees becomes imperative. Yet with restrictions in finances, what else can businesses do?

• Consider non-monetary rewards to demonstrate appreciation for employee efforts and reward performance, such as peer recognition programmes.
• Have open and transparent conversations to seek the support of employees during this period. Reinvest in employees once the situation improves as a way of showing gratitude for supporting the organisation.
• Implement a flexible wage system to sustain employment during bad times, and reward employees during good times.

Evolving from the “Traditional” Performance Management Process

Some businesses today have successfully moved away from the traditional forced distribution aspect of performance management. What are some key elements that made it work?

• Clarity in criteria and assessment process: Managers need to be clear on the criteria to measure performance – both hard targets/KPIs and behaviours in line with the company culture that contribute to a positive assessment. Employees must also understand how success is defined in their role, and the criteria they are assessed on. This includes using a performance rating scale customised to the business context, that clearly indicates why employees are rated in a certain manner.
• Importance of documentation: Documentation supports the assessment process not only by reducing possible contention between managers and employees; but tracks discussions and builds accountability. It also moderates the standards across all managers, ensuring a fair and equitable outcome.
• Get employee buy-in: Employees must view performance management as a talent nurturing process with the goal of engaging them to help them grow and improve to achieve success in the long-run, regardless of how employees are ranked.

Performance management is a springboard into the future, and doing it well will be key to moving your businesses into a sustainable and secure future. As shared by the panelists, this cannot be achieved without the regular performance conversations today, systems to support employees in their training and career development; as well as having managers that understand the pivotal role they play to reap the benefits of effective an performance management process.

Read part 1 and part 2 of the article series.