Ongoing performance development™ is crucial to success in the modern business world, because employees are the backbone of a company. At BetterWorks, we know that when employees, managers and teams are given the tools and opportunities to do their best while they grow within their careers, enterprises are more likely to achieve larger company goals. Businesses that evolve their performance management structures to foster ongoing growth and achievement create a workforce that is more productive. In fact, there are three characteristics that define employees who work in environments where ongoing performance development is the norm:
“Employees today are dissatisfied with the status quo of performance management.”
The truth is that employees today are dissatisfied with the status quo of performance management. For instance, research conducted by i4cp found only 55 percent of employees are satisfied with their performance management appraisals. It makes sense, because far too often, performance evaluations rely on frustrating ranking systems, incomplete feedback and a limited amount of data. Moreover, annual reviews do little in the way of ongoing performance development because employees receive feedback when it’s already too late to improve. The modern workforce wants constant opportunities for improvement and advancement, and companies that develop ongoing performance management practices are more likely to keep employees happy.
Ongoing performance development and employee engagement go hand-in-hand, and the data exists to prove it. According to research from Aon, career opportunities and performance management were the top two engagement drivers in 2014. When managers consistently motivate their employees to achieve their goals, produce work at a higher level and aspire toward new career opportunities, they are more engaged and productive at work.
Employee retention is a top priority for most enterprises because hiring new talent is costly and time consuming. Companies that hope to retain their best employees must have the performance management structures in place to drive loyalty. In fact, the Pittsburgh Post-Gazette reported data from recruitment firm Accounting Principals that found 26 percent of employees leave their companies because they don’t have career development opportunities.
While some companies simply lack the opportunities for upward mobility, others fail to communicate the potential for growth, and some don’t have the structures in place to help workers advance to more challenging, rewarding positions. However, when companies adopt a culture of ongoing performance development that relies on aspirational goals, goal setting software and engaged managers, employees’ loyalty will increase with their opportunities for growth.
Ongoing performance development has major benefits for enterprises and helps create the best possible workforce a business needs to succeed.