Managing Employee Performance: How To Get a Better ROI

January 5, 2022 in Performance Management

Managing Employee Performance: How To Get a Better ROI

Managing employee performance certainly became more challenging during the pandemic. Performance conversations took a back seat in organizations where managers had relied on in-person check-ins to provide feedback and support development.

“In remote- or hybrid-work environments, you need to be much more intentional about your communication,” according to a talent manager whose organization faced struggles connecting in a remote work environment. “That’s particularly important with performance management because it’s easier to overlook the need to provide employees with feedback or set priorities when they’re out of sight.”

This type of employee experience is not a unique one. Many organizations quickly realized that in order to retain talent, they would need to implement technology to manage their distributed workforce during the pandemic. In 2022 and beyond, a performance management process that works, regardless of location, is no longer a suggestion. It’s a requirement.

Kick-off the year with a process that drives high-performance through growth and development. Because, when companies help employees to realize their full potential, it’s a great outcome for everyone. Here are four things to consider for your next performance conversation that will lend a stronger ROI, and happier people.

Establish a continuous cadence for more effective coaching

With managers spending an average of 210 hours a year on performance management alone, time is money. Implementing a review process that will help managers gain back productivity is already a great first step to getting a better ROI on performance.

First things first, it’s time for organizations to look at their performance review process as less of a once-a-year evaluation and more of coaching conversation. Regular check-ins don’t need to equal more time. Plus, the 2021 Culture Check-in Survey showed that rising leaders want more frequent touchpoints with their managers anyway. Coaching conversations that occur at least once per quarter allow everyone to perform more effectively. Managers can address performance issues early, track individual OKRs, and support employee development plans. Employees can address struggles, have their voice heard, and be further connected to their path to success.   

Focus on talent and career development

The Great Resignation continues. We saw 4.2 million Americans quit their jobs in October 2021 to seek better opportunities, according to the U.S. Bureau of Labor Statistics. Now, more than ever, the workplace needs great managers to retain great employees. Staying focused on growth and development is a key to not only retaining the talent organizations already have, but attracting new talent, too.

Even before the pandemic, HR leaders were looking at better ways to manage employee performance. As of July 2021, 70% of companies said they felt there should be a stronger link between performance management and other talent considerations. With uncertainty still surging through the workforce, that isn’t going away. Act now when it comes to understanding and honoring people’s development goals. In an employee’s market, talented people will flock to those who recognize it. It’s that simple. Not to mention, the cost of turnover may far outweigh the investment organizations could be making in an effective performance process based on coaching. 

Get the Ultimate Guide: How to Build & Maintain a High Performance Culture With Continuous Coaching

Don’t overlook relationships

Employee relationships may not be the first place you’d expect to look when you consider the ROI of a performance management process. Think again. According to Gallup, organizations can experience 59% less turnover just by having highly engaged people. While the math may look different depending on the organization, the cost to invest in employee success far outweighs the cost to replace and train new or inexperienced talent. 

While regular performance conversations are meant to track progress and drive performance, humanizing the process with coaching is the secret ingredient that gets organizations ahead. What are people’s personal goals? Who is important to them at home? What are their concerns? With people who feel 4.6 time more likely to perform at their best when they feel heard in their job, these are the questions managers need to be asking.

Create a sense of belonging

There is no quick fix to creating a sense of belonging. It’s a carefully curated culture that happens over time, and with work! Those that are taking a people-focused approach to performance management are likely experiencing this concept most. In fact, 47% of active job seekers cite company culture as their driving reason for looking for new work. 

Continuous coaching does more than just track progress. It defines the culture of an organization. Of course, culture is a complex concept, but there are three it-factors that run consistent through the good ones. This magic trifecta happens when employees feel empowered in their role, connected to their peers, and aligned to a career path. 

Reap the rewards

To date, the pandemic has shown a massive shift towards distributed workforces, making technology essential if organizations want to achieve a better ROI on their performance management efforts. The need for managers to have a method that consistently coaches, connects, and aligns their people isn’t going away. Consider a performance management software that enriches the lives of HR teams, managers, and employees. 

Get the most from your people — and your performance management process.

Learn more about how a continuous coaching platform turns goals into results and connects people to purpose.

Download The 2022 Culture Check Survey Report NowWe polled over 1,000 people. The results? See for yourself.