Employee Performance Management: 6 Steps to Skyrocket Growth

Employee performance is the number one factor that affects the productivity of a company. The very first question top management thinks of when it comes to employee performance is, what can they do to improve it.

But one thing that often gets left out is what are the factors that play a role in employee performance, to begin with. Once you have the answer to this question, you will be able to make changes in them to improve performance drastically!

So, in this blog, I will cover,

• What is performance management?
  • Employee performance
• Why are We Even Talking About Employee Performance: The Root Cause
• Understanding the General KPIs to Monitor Employee Performance 
• How can you measure employee performance?
• Why is it important to measure employee performance
• How to Manage Employee Performance by Focusing on Work Quality: Top 6 Steps 
• What are the factors that affect employee performance?
  • Employee engagement
  • Employee training and development
• How can you improve employee performance?
• How can you use OKRs to boost employee performance?

What is Performance Management?

Performance Management (PM) is a process that aims to ensure that a set of activities and outcomes achieve organizational objectives efficiently and effectively and it focuses on the performance of employees and sees if they meet the expectations set for their positions.

Performance management can focus on the performance of an organization, department, employees, or processes used to perform certain tasks. In practice, the use of performance management is to perform an appraisal of employees and the development of management. 

So then, what is employee performance?

Put simply, employee performance is how a member of staff fulfils the duties of their role, completes required tasks, and behaves in the workplace. Measurements of performance include the quality, quantity, and efficiency of work. When leaders monitor the performance of employees. They can paint a picture of how the business is running. This not only helps to highlight what companies could be doing in the present to improve their business, but this information also feeds into future growth plans.

However, placing a focus on employee performance doesn’t just benefit the business. It helps employees to reach their full potential, while also improving overall performance – which can have positive effects on morale and the quality of work produced.

Lastly, but most importantly, when employees are underperforming, customers may be dissatisfied. As a result, the entire business may be affected by poor performance and struggle to reach goals.

Why are We Even Talking About Employee Performance: The Root Cause 

Problem at the core- Employees Can’t Hear YOU.

Since we are talking about elevating employee performance, it is probable that employee engagement rate at work is not that impressive. Recently, one of Gallup’s reports has unleashed a news wrapped with shock! In its State of the Global Workforce Report, it surmised that 85% of employees are not actively engaged at work. So, it leaves only 15% of active employees as a residue at an organization. 

The reason behind such a low employee engagement rate at workplace boils down to impaired physical and psychological well-being of employees. And, that’s the very reason triggering them to resign or underperform. Employees might be having a hard time coping with certain physical or emotional problems. Perhaps, they have some big worrying factors in their minds.

Or, there could be some other issues too. For instance, the root cause might be the toxic culture of the company or cold, estranged relation with the company leadership. Well, you never know what the real reason behind employee disengagement is. 

The best part? You can always endeavor to find out the root cause of low employee productivity either by conducting a survey or adopting the “Me-We-World” Framework. 

While we have detailed everything about an employee engagement survey here, let’s see what this “Me-We-World” framework is!

Me-We-World Framework 

An individual gets afflicted with problems at three different levels:

• Me: That is, on a personal level;
• We: Crisis in teamwork or management follies in the company;
• World: Issues affecting an individual at a macro level, that is, influx of terrifying global issues 

Employees might stay aloof from work when something is tormenting them mentally or physically. A combination of various hurdles at each different level cumulatively forms the “Me-We-World” framework. 

So, where does the solution lie? Well, embracing a people-focused culture can make problems like low employee productivity or impaired engagement rate disappear magically. 

Embracing A People-Centric Approach 

As an employer, it is essential to communicate with your employees and understand their problems plaguing them. Large corporations all over the world are going for  a “People Over Profit” model. This is because, it is implicit that  giving greater preference to employee voice will automatically result in enhanced employee productivity. Needless to say, collective employee productivity will then propel the workforce to bring out their best work to the fore. 

Understanding Employee Concerns at an Individual Level

Before being identified as the employees of your company, they are first “humans.” Problems affecting them at a personal level fall under the category of “me” issues. Being empathetic and giving them a vent to express their suppressed thoughts is crucial to make them feel that the organization values their presence. 

Lending an Ear to the Collective Team Voice 

Falling in the category of the “We” comes the problems that the team at a whole is encountering at the organization. Any issues starting from restrained communication, toxic work culture to cold attitude of the company leadership team may adversely affect the job performance of employees. Investing time to address these issues first hand is of paramount importance. 

Paying Heed to the Issues Affecting All of Us Globally 

The “World” category takes into account the plight of the entire humankind dwelling on the planet. For instance, these include global disharmony, racial prejudices, climate change, and the list goes on. These harsh realities might exist outside the periphery of your office building but that doesn’t mean that your employees won’t get affected by these. So, how to manage performance of employee and tackle this hurdle? Well, the answer is simple. It is all about being empathetic, communicative, and co-operative. A people-centric culture in a company has the potential to soar heights. 

Make your employees feel empowered. In that way, they will grow a strong liking with the organization they are working for. This, in turn, will stimulate employee performance in unimaginable ways. 

Understanding the General KPIs to Monitor Employee Performance 

 To carry out efficient performance evaluation of employees, you need to assess the work they do on the basis of certain Key Performance Indicators or KPIs. Employee KPIs are like a yardstick that measures progress, but it’s important to remember that they are just one tool in the toolbox and not the whole picture. Therefore, even if you witness failing employee progress in the workers performance evaluation, try to delve deeper into the reasons behind it by striking a friendly conversation. It is better to keep stringency at bay, and invite empathy. 

1. The Amount of Revenue Driven 

To what extent is the employee contributing towards the generation of revenue for the company? This parameter is essential, especially, for employees belonging to the Sales Department. 

2. Work Quality 

Quality of the work delivered is also another vital aspect that employers need to take into account for managing employee performance. Some common parameters that you can use are- accuracy level, adherence to deadlines, maintenance of quality standards, etc. 

3. Efficiency

This KPI will measure the productivity of an employee. Basically, it is all about gauging the volume of work that an employee produces in a particular period of time. Further, it is also about the precision level of the work delivered. 

4. Time Management 

While starting off with staff performance management, make sure you are including time management as a component too. This will help you understand if employees are able to navigate through their work schedule by prioritizing their tasks at hand and completing them on time. Integrating advanced tools like process mining with AI can offer a deeper understanding of workflows, helping organizations identify inefficiencies and enhance overall productivity.

5. Teamwork 

Teamwork in an organization is essential so that employees work together efficiently and materialize the company vision into reality collectively. Using this as a KPI will help you know whether an employee has the ability to collaborate with others in the team, maintain proper communication with others, and chalk out strategies to bring about innovations. 

6. Punctuality 

Management of employee performance won’t be complete without assessing their punctuality. If employees start working late or stay away from work, it would hamper company growth. No wonder why punctuality emerges to be one of the crucial KPIs to be paid heed to while managing performance of employees. 

7. Customer Satisfaction 

Use customer satisfaction as an one of the employee performance indicators to understand if services rendered by your employees are resulting in the creation of a happy customer base. 

How can you measure Employee Performance?

Every role is different so the metrics used to measure employee performance will ultimately depend on the type of business the company and employees operate in. But in general, the main ways to gauge performance are:

Quality of work

The Standard of work produced is a key performance indicator.

Are employees putting in maximum effort to ensure high-quality results? Are performance objectives being met? Quality of work provides the basis to analyze all other elements of their performance.

Speed and efficiency

Looking at how much employees accomplish in an average week, month or quarter, how does this match up to your expectations? Are deadlines met, vastly improved on, or is time wasted? Are corners being cut to produce work quickly? Efficiency is the result of maximum output at least cost so this is vital to be aware of within your company.

Trust and consistency

Ask yourself if you trust your employees to do all their work to a high standard and deliver it on time. Do they work independently or do you feel that you often have to step in? Do they consistently display company values? Are they punctual and present to the expected standard?

High-performing employees can be trusted with autonomy and continue to produce strong results without much supervision. Keep these performance metrics in mind when conducting individual employee performance reviews.

The specifics of these metrics will differ depending on the specific job function. The goals of all your employees (and their supervisors) should align with those of the organization (and each other!). By establishing clear objectives and timelines for achieving them, each employee should understand exactly what is expected of them.

Suggested Read: Employee Survey- How to Craft the Best Questionnaire?

Why is it important to measure employee performance?

Tracking employee performance is important for multiple reasons. Some of them are…

1. It helps you understand whether or not the employee is on track with reaching his or her goal.
2. You will be able to track the percentage of goals that your employees are meeting much.
3. Tracking employee performance will give you a clear idea of how many employees are underperforming.
4. Similarly, you will also be able to keep track of your top performers.
5. Handing out salary increments based on performance becomes easier.

You can check out our performance based pay hike (salary increment) calculator by clicking here!

How to Manage Employee Performance By Focusing on Work Quality: Top 6 Steps 

Evaluating employee performance by focusing on work quality may fetch you the exact employee review reports you wanted. Work quality metrics are like a compass for managing employee performances, guiding you through the challenging terrain of productivity and ensuring you stay on the right path to driving company success. Shed light on the quality of employee performance by adopting the following:

1. Managing Employee Performance Via Objectives 

Management by objectives is a remarkable way to assess employee performance. This is a unique management model that involves transferring the organizational goals into individual goals. And, these are the very goals that get translated to objectives. The team leader or manager then assigns these objectives to the employees. Depending upon the extent to which an employee succeeds at meeting these objectives, the manager can give certain scores or points to them. This is an effective way to track the number of goals that employees have achieved. 

The interesting bit? Using this performance management technique makes employee performance results data-heavy, thereby adding an element of tangibility to the process. 

2. The 9-Box Grid Model 

The 9-box grid is an employee performance evaluation tool used in talent management and human resources to evaluate and categorize employees based on their current and potential value to an organization. It typically consists of a 3×3 grid, where one axis represents an employee’s current performance (e.g., low, medium, high), and the other axis represents their future potential (e.g., low, medium, high).

Employees are typically placed in one of the nine boxes based on their performance and potential. The boxes can be labeled differently depending on the organization’s preferences, but common labels include:

• High Performers, High Potential

  These are employees who are excelling in their current roles and have the potential to take on more significant responsibilities in the future. They are often considered high-potential talent.

• High Performers, Medium Potential

  These employees are doing well in their current roles but may not have as much potential for significant advancement or leadership roles.

• High Performers, Low Potential

  These employees are strong performers in their current roles but may not be considered for leadership positions or career advancement.

• Medium Performers, High Potential

  Employees in this category may not be top performers currently, but they show promise and potential for future growth and development.

• Medium Performers, Medium Potential

  These employees are considered average performers with average potential for future advancement.

• Medium Performers, Low Potential

  Employees who are performing at an average level but may have limited potential for significant career growth fall in this category. 

• Low Performers, High Potential

  These employees may be struggling in their current roles but have untapped potential that could be developed with the right support and development.

• Low Performers, Medium Potential

  Employees who are not meeting performance expectations and may have limited potential for career growth fall in this category. 

• Low Performers, Low Potential

  These employees are both under performing in their current roles and have limited potential for advancement.

This is a remarkable staff performance management tool that helps organizations make informed decisions about talent development, succession planning, and performance management. It allows them to identify individuals who may benefit from training and development to reach their potential or those who may be suitable for leadership roles in the future.

3. Net Promoter Score 

Net Promoter Score (NPS) is typically used to measure customer loyalty and satisfaction, but it can also be adapted to manage employee performance by gathering feedback from employees themselves. Let’s demystify the way you can use NPS to spearhead the management of employee performance. 

Employee Feedback

Implement NPS surveys among employees, asking a simple question like, “On a scale of 0 to 10, how likely are you to recommend our company as a great place to work?” This question helps gauge employee satisfaction and engagement.

Categorizing Responses

Employees can be categorized into three groups based on their NPS scores:
   – Promoters (score 9-10): These are highly satisfied and engaged employees who are likely to recommend the company. They are typically top performers.
   – Passives (score 7-8): These employees are somewhat satisfied but not overly enthusiastic. They are considered neutral and may need some improvements to become promoters.
   – Detractors (score 0-6): These employees are dissatisfied and at risk of disengagement or leaving the company. They may indicate performance issues or other concerns.

Root Cause Analysis

For detractors and passives, use follow-up questions to gather specific feedback on what can be improved. This information can be used to identify the root causes of performance or satisfaction issues.

Action Planning

Once you have categorized employees and gathered feedback, develop action plans to address performance and satisfaction issues. This might involve targeted training, better communication, career development opportunities, or addressing specific concerns raised by employees.

Continuous Monitoring

Implement regular NPS surveys to track changes in employee sentiment over time. This allows you to assess the effectiveness of the action plans and make adjustments as needed.

Recognition and Rewards

Recognize and reward high-performing employees who are promoters. Encourage them to be advocates for the company, both internally and externally.

Performance Appraisals

Integrate NPS data into performance appraisals, linking it to compensation and career progression decisions. This provides an objective measure of employee satisfaction alongside traditional performance metrics.

Benchmarking

Compare your employee NPS scores to industry benchmarks or historical data to see how your organization is performing relative to others and whether improvements have been made over time.

Using NPS to manage employee performance can provide valuable insights into employee satisfaction and engagement, helping to identify areas for improvement and create a more supportive and motivating work environment. However, it should be used in conjunction with other performance management tools and not be the sole determinant of an employee’s performance evaluation.

4. 360-degree Feedback 

360-degree feedback is a multi-rater assessment process that involves gathering input from various sources, such as supervisors, peers, subordinates, and self-evaluations, to assess an employee’s performance. Want to view employee performance from a multi-perspective lens? Well, this can work wonders for you in the process of evaluating employee performance.

Holistic Evaluation

It provides a more comprehensive view of an employee’s performance by considering feedback from multiple perspectives, offering a well-rounded assessment.

Identifying Strengths and Weaknesses

Employers can pinpoint an employee’s strengths and weaknesses more accurately, allowing for targeted development and improvement efforts.

Enhanced Self-awareness

Employees gain insights into their own performance and how they are perceived by others, which can lead to increased self-awareness and personal growth.

Objective Feedback

It reduces biases that might exist in traditional performance appraisals, as it includes input from various sources, promoting a more balanced and objective evaluation.

Goal Setting and Development

Employers can use the feedback to set clear performance goals and create tailored development plans for employees to improve their skills and capabilities.

Motivation and Engagement

When employees see that their feedback is considered, it can boost motivation and engagement, leading to better performance.

Improved Communication

It encourages open and constructive communication among team members, fostering a culture of continuous improvement.

Team Collaboration

It can highlight areas where team collaboration and dynamics can be improved, as feedback often includes insights on how employees work together.

Succession Planning

Employers can identify potential leaders or key contributors within the organization, aiding in succession planning and talent management.

Performance Metrics

360-degree feedback can provide valuable data for measuring and tracking performance over time, helping employers make data-driven decisions.

You can use this to gain a more comprehensive understanding of employee performance, foster professional growth, and make informed decisions about performance management and development.

5. 180-degree Feedback 

180-degree feedback, also known as manager or supervisor feedback, involves gathering input on an employee’s performance from their immediate supervisor or manager. While it provides a narrower perspective compared to 360-degree feedback, it can still be valuable in managing employee performance in several ways:

Managerial Insights

It allows supervisors to provide feedback on the employee’s performance and offer guidance on areas that need improvement, helping the employee understand their role better.

Alignment with Organizational Goals

The feedback can ensure that employees are aligned with the organization’s goals and objectives, as managers can emphasize key performance indicators and expectations.

Clear Performance Expectations

It helps in setting clear performance expectations, goals, and job responsibilities, reducing misunderstandings and improving job clarity.

Individual Development Plans

Based on the feedback, managers can work with employees to create personalized development plans, focusing on skill enhancement and career growth.

Feedback Loop

It establishes a structured feedback loop between employees and their supervisors, encouraging regular communication about performance and progress.

Performance Appraisals

Manager feedback is often a crucial component of formal performance appraisals and can contribute to decisions regarding promotions, salary adjustments, and recognition.

Performance Improvement

Managers can identify areas where employees need improvement and provide coaching or additional resources to help them enhance their performance.

Recognition and Rewards

It allows managers to acknowledge and reward good performance, which can motivate employees to maintain or improve their work.

Risk Mitigation

By addressing performance concerns early, it can help mitigate potential issues before they escalate into more significant problems.

Leadership Development

For managers themselves, providing 180-degree feedback can be an opportunity to develop their leadership and coaching skills.

180-degree feedback is a valuable component of performance management, as it involves a critical relationship between employees and their immediate supervisors. This focused feedback helps in setting expectations, supporting development, and making informed decisions related to employee performance.

6. Forced Ranking 

Forced ranking or vitality curve,  also known as “stack ranking” or “rank and yank,” is a controversial employee performance management technique that ranks employees’ performance on the basis of mere comparison with each other. No fair parameters are used to give the ranking, and thus its name- “Forced ranking.” 

What Factors Influence Employee Performance?

Employees don’t perform in a vacuum. Certain factors like the employer, immediate manager or supervisor, personal preferences, employee’s career aspirations and many other factors affect employee performance. We are not going to consider factors that hinder employee performance like personal problems because the organization cannot eliminate them completely.

Alternatively, we are focusing on factors that are in the control of companies. Companies being thoughtful about how to engage their employees can make all the difference. There’s no simple or easy way but there are certain key areas that employers can focus on to create powerful outcomes.

Let’s discuss the two primary factors that majorly affect employee performance.

1. Employee Engagement affects employee performance

The Workplace Research Foundation found a 10% increase in employee engagement can increase profits by $2,400 per employee. The numbers overwhelmingly prove employee engagement plays a vital role in revenue generation. But what constitutes employee engagement?

Factors that affect employee engagement and motivation  

• Positive environment

The first step is checking if your work environment is create a positive working environment. This would mean, a workplace where feedback is encouraged and achievable goals are set for all. You can see significant productivity improvement if your organization has a positive work environment.

Setting unclear and unattainable goals usually results in lower productivity and loss of individual motivation.

• Quick action on employee issues

The secret to any organization’s success is always communication. As a manager or founder, you have to power to define these communication protocols. Not just that, having open door policies in place will help increase workplace communication too. The executives should promote open communication across all levels. Team members should feel that they can raise issues. Not just that, employees should know that if they have a problem, their managers will act on them.

When employees feel directly connected to the organization, engagement increases and hence, productivity increases.

• Work versus personal life balance

Yes, while employee engagement may seem like a factor where you keep employees constantly engaged, you need to know when to let go and give them personal time as well!

Employees often tend to overwork themselves, especially in a work-from-home setup. Very often, employees don’t even have a defined, clear line between work and home schedules. Ideally, they need to prioritize their mental health as much as their work. One way is that you can break down large tasks into smaller goals before assigning them to your employees.

Similarly, strategizing and planning one’s day can also be helpful. Learn about how to increase employee engagement in startups by clicking here

• Company culture –

Employee engagement doesn’t happen all of a sudden, a company must focus on employee needs & wants over time and should drive a strong culture. Let’s have a look at some facts and discourse on the buzzword company morale and culture.

According to Glassdoor’s Culture Survey, 2019 report over 77% of adults across four countries (the United States, France, UK, and Germany) consider a company’s culture as the priority while applying for a job and more than 50% of respondents said that company culture is more important than salary when it comes to job satisfaction.

Culture is the backbone of the company that helps in employee retention and motivates your employee performance.

Company culture empowers employees to defy the odds and achieve greater performance. Also, culture needs to be cultivated regularly for long-term benefits, it’s not a one-time objective to achieve. The more the company invests in culture the more employees become engaged.

2. Training and Development

Training focuses on immediate improvements such as mastering a change in your business software whereas development focuses on long-term objectives. Employee performance depends on the training he/she gets from the company.

Companies have different levels of training and employee performance expectations depending upon the situation. Moreover, training doesn’t end at onboarding.

If employees receive no training after their first few weeks on their job, they will feel like the company isn’t investing in their development.

Companies must provide a seamless learning environment for employees which fosters employee career advancement.

Factors that affect work performance  

• Growth and development impact employee performance

As a manager and leader, there are a number of ways in which you can influence workplace productivity. They include various variables, such as the availability of training and growth opportunities. Employees need to think that their employers care about their professional growth and provide them with adequate learning and development.

• Empowerment, coaching and motivation from leadership

Appreciation and support from managers and senior leaders can be extremely motivating for employees, thereby resulting in more productivity. Motivation, regularly, will empower employees to take on more opportunities, leading to not only increased productivity but also personal growth. 

• Communication and collaboration and their effects on employee performance

You must have heard about peer-to-peer learning right? It is a massive part of employee learning and development Communication and collaboration are two key factors associated with employee learning and development at the workplace.

A constant flow of communication is necessary to keep teams updated, informed, and engaged. Lack of communication results in silos, therefore reducing employees’ ability to learn from each other. Collaboration, on the other hand, encourages employees to engage and innovate in the workplace. And engagement, combined with motivation, can lead to more productivity. 

Tips to Improve Employee Performance?

You won’t get lost in the vast ocean of confusions surrounding employee performance if you follow these tips:

Suggested Read: 35 Actionable Ways to Improve Performance and Drive Business Growth by 15x

1) Investigate why the employee isn’t meeting expectations

The list of reasons why an employee isn’t performing as expected can be endless. If you don’t get to the bottom of these, it’s almost impossible to take the right steps to improve them.

Start with an open and frank discussion and find out if the employee feels anything is affecting their ability to perform. It could be that they feel the business is holding them back from reaching their full potential, they could be lacking resources, don’t feel aligned with company goals, or aren’t receiving the proper guidance or training. It’s also possible that factors affecting work may be unrelated to work itself.

Personal reasons such as an employee may be going through a time of poor mental well-being or experiencing issues in their personal life can also impact performance.

By using practical and accurate time-tracking software within your industry, you can gain insights into how time is being utilized, identify areas of improvement, and ensure deadlines are met. If you are looking for functional time-tracking platforms, read this post for recommendations and insights on the top options available in the market.

2) Encourage continuous communication

Clear and effective communication is essential for improving employee performance. Receiving negative feedback can be challenging and uncomfortable — both for management and the employee — but it’s important to foster an environment of transparency and direct communication. It’s unrealistic to expect employees to change and improve without giving them concrete feedback and specific action points to work on.

Also, you should encourage team members to communicate their perspectives, regarding progress, deadlines, expectations, and available resources.

A culture that rewards collaboration and sharing ideas can improve the energy on your team, help you cultivate innovation, and improve performance levels for everyone.

3) Discuss both high and low aspects of employee performance

Performance reviews shouldn’t just be focused on what’s not going well – even though improvement is your end goal. Focusing just on areas for improvement could knock your employees’ confidence and could lead to resentment if they feel that their hard work in other areas is going unnoticed.

Be sure to let your employees know what they’re doing well and point out any stand-out moments in performance since their last review, as well as the areas for development. When you recognize their hard work, employees will know that they’re valued members of the team and will continue to put this effort into their work. Nevertheless, when you do discuss challenges and areas for development, you have to be clear about any problems.

The easy road would be to ‘soften the blow’, but by not being clear on what the problem is exactly, you’ll make any problems worse in the long term and the relationship could become more hostile.

Make sure that the employee leaves the conversation with a clear understanding of their strengths, any areas for development, and the steps that should be taken to get there.

4) Provide consistent feedback as they progress

The most efficient way to improve employee performance is to provide regular feedback. By frequently feeding back, you can help employees stay on track as they work to improve, rather than keeping issues to collect while you wait for an annual formal review. By then, the effects of poor performance may have been detrimental to the team or business.

Frequent feedback helps employees to become more comfortable with receiving feedback in general. It can also stop any negative connotations that people associate with receiving feedback. That’s because frequent feedback is more likely to be a mix of positive and constructive comments, which can help to keep employees engaged and encouraged rather than disheartened.

It’s important for performance improvement that employees know where they stand and how they’re progressing. They’ll then be more aware of how they’re doing. Your employees will also know what steps they need to take to improve further.

5) Job satisfaction has a huge impact on employee performance

Often, employees only want to put in what they’re getting out of a role. If they feel they aren’t getting paid enough, aren’t getting the benefits that they could be getting elsewhere, or feel like their workplace is lacking in resources – they may not try as hard to perform.

Take a look at rival employers to ensure you are offering the right benefits to keep your staff happy, engaged and productive.

How can a concept like OKR contribute to Employee Performance Management?

Continuous process management and OKR process elements are closely aligned with each other.

Although OKRs revolve around organizational and team-level performance, continuous performance management includes individual employee performance following are the basic elements as a foundation for continuous performance management.

• Continued recognition and appreciation
•  Regular conversations about goals
•  Teaching

Performance and development goals. Of course, you need to include how key outcomes in discussions around performance and development. When key results fall significantly short of expectations, it is important to examine the reasons from a performance perspective, rather than blaming this on the performance of the employee.

OKRs are a great way to understand where things went wrong and hence make a positive difference in the performance of the employee.

Frequently Asked Questions- Managing Employee Performance 

1. What is the importance of employee performance? 

Employee performance is intricately linked to company success. Supervising work performance of employees is essential not only for boosting employee engagement rate but also for stimulating employee productivity. Since a company can’t reach peaks of success without giving a push to employee productivity, conducting performance evaluation of employees is a must. 

2. What are the key elements of employee performance? 

The key elements of a standard evaluation process of managing employee performance include:

• Fixing goals;
• Communicating with team members;
• Conducting appraisal and analysis;
• Offering training sessions to employees;
• Tracking progress of employees;
• Ensuring positive adoption of changes 

3. What are the 5 steps of the performance process? 

The 5 steps of the performance process are- planning, supervising, developing, rating, and rewarding. 

4. What are the 5 C’s of performance management in HR? 

The 5C’s of performance management in HR include: Clarity, Context, Consistency, Courage, and Commitment. 

5. What are the three elements of employee performance? 

The 3 core elements of employee performance are- 

• Reviews 
• Goals 
• Feedback 

6. What is the 720 approach? 

720-degree performance appraisal is a method by which employee performance is evaluated from a holistic 360-degree accompanied by on-time feedback. 

7. What is PMS in HR? 

PMS stands for Performance Management System. The HR department uses this PMS to track employee progress and check if they have managed to achieve the goals. Further, it is used to assess the quality of work of employees and suggest apt feedback, as needed.

8. What are the 3P’s of performance management? 

The 3P’s of performance management in the domain of HR refers to People, Process, and Performance. 

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.