What is Performance Management?
Performance management is the process of involving employees in accomplishing your organisation’s mission and goals, helping them to set and achieve their own goals for the business, and see how they can reach personal growth as part of this.
Measurement and tracking are a part of how most businesses are managed: agreeing and setting sales targets and budgets, market share, Client satisfaction – and many other areas that tell the Business Owners how things are going against the plan. So it should come as no surprise that there needs to be a programme that measures the Performance of Employees.
Why is Performance management important to SMEs?
- Your employees represent a very significant financial commitment
- There is a need to quantify the return you get on your investment and ensure that everyone is contributing to the success of the business
- It is vital that the workforce are all aligned with the Company objectives and moving in the same direction at the same time
Performance Management Programmes align the objectives and plans of the Business with the month-to-month focus of its Managers, and what its Employees do every working day.
How can Performance Management add value to Small and Medium Sized Businesses?
A robust performance management system:
- Aligns the Company’s objectives with the performance and output of Employees
- Sets and monitors goals – for the Company and the Individual Employee
- Helps the business clarify and reach its goals more quickly
- Identification of Skills Gaps and Training Needs
- Ensures productivity and value for the Company’s investment in staff salaries and related overheads
- Creates a developmental path for Employees
- Gives visibility on Performance Levels across the Business
- Creates and supports the culture in which Employees are always working on the right tasks and at the right time
- Alignment of Teams with a common purpose
- Provides a highly effective Management Tool for Managers
- Structures and Professionalises already motivated Managers and Teams
What are the symptoms of an SME with no Performance Management System?
- Poor service
- Poor communication
- Reduced Management confidence
- Less direction and support for employer
- Staff turnover
- Loss of good people
If your business is suffering from some of these issues, then it may be because there is no Performance Management System in place.