A Performance Management approach in managing talent is the most conversational type of process. I say ‘conversational’ primarily because it is a process in which the manager and the employee actually sit and chalk out the objectives and then set goals. The joint goal setting is what makes this such a vital, and in many ways, a fulfilling experience for all parties involved. And because it is conversational in nature, it is more likely to help retain and grow talent.

The Performance Management approach has been quite a success with many modern-day organizations mainly because, in this process, both the management and employees jointly set, agree on goals and work out a clear path to achieve them. Once the goals are set, performance review meetings are also held frequently to track progress and to see if any training needs are required to reach the set objectives. Employees have ample opportunity to highlight issues and constraints; and to deliberate with their managers to arrive at a mutually agreed solution. There are no surprises and everyone is on the same page in terms of the goal path. This process is fulfilling and transparent, both for the organization and its employees, and moreover, it leaves less scope for discontent and ambiguity. 

This is a very employee-centric approach and lets each individual know that he or she can grow in the company, by focussing on their skills and training requirements. This further leads to higher employee satisfaction and hence a happier and successful organization!

Two key benefits of Performance Management

A great way to nurture talent with zero slippage: Unlike the annual performance review process, the Performance Management approach is not daunting for an employee. Because of the constant conversations, the employee and employer both identify issues early on and work towards them. Human Resources teams today ensure that managers have performance review meetings with their direct reports every month.

Furthermore, Performance Management focuses beyond monetary increments and covers key areas such as —

1. Career opportunities for growth: The process gives employees the scope to understand the kind of growth ladder that is open to them. They can make some time for tapping into the organization’s knowledge pool. The frequent joint discussions allow the mangers to gauge the sentiment of employees, thus helping in key decision making processes for secondments, promotions and more.
2. Opportunities to work in a customer environment: Specific skill sets and a lot of tact is required to work in the customer service environment. Customer-facing roles hold a lot of prestige and are critical in the entire relationship management with the client. With continual performance management reviews, managers can gauge which employees are ready/best suited for a customer-facing role, as they will essentially be the company’s brand ambassadors.  

Ensures that the company goals and the employee goals are aligned: Despite corporations outlining their strategic goals for the year, employees need help to contribute to that vision. Employees sometimes are in ambiguity when it comes to how they can strengthen the company’s vision. The best way for a company to help employees perform at their optimal level is to make them feel involved in the process. With the help of Performance Management, managers constantly guide an employee to perform better and address key areas thereby realizing the company’s goals.

In such a format, appraisal is seen as a two-way feedback. The primary focus is for the manager to connect with the employee and give him feedback on performance, improvement areas and opportunities. Employees are also encouraged to give a formal feedback on their needs from the manager, and the organization as a whole. This helps the C-level management in formulating goals based on adequate feedback from each and every individual in a company, irrespective of size.

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