When employees start exiting a company en masse, everyone – from the newest hire to top executives – gets nervous. It doesn’t matter whether employees leave of their own free will or not. Going through the hassle of finding people to replace them is stressful and creates an air of uncertainty.
It’s no secret then that many businesses work hard to solve the issue of employee turnover. One solution is to add a lot of perks, but top businesses find that employee development has a higher success rate. Here’s how ongoing performance management reduces employee turnover:
“Imagine if only 32 percent of your employees were currently engaged.”
According to Gallup, employee engagement across the U.S. has barely budged since 2011, rising slightly from 29 percent to 32 percent. Although the increase itself is a positive sign, try imagining if only 32 percent of your employees were currently engaged. Businesses should strive higher, and ongoing performance management helps by frequently involving employees in their own development. They create goals that reflect their own career aspirations while simultaneously supporting the business, and they receive frequent feedback on their progress. When employees understand how to develop with a company, their engagement increases and they feel less inclined to leave.
Details the Path to Career Success
Your employees don’t want to stay at the bottom of the totem pole forever. Yet, without seeing the next step – or even knowing how to get there – employees are more inclined to find another business where advancement is both possible and visible. By going through the process of setting objectives and key results or SMART goals, employees can define a series of logical steps that allow them to advance in their careers. They know exactly what they need to do to get to the next level, and frequent check-ins with their managers let them understand their own performance, evaluate strategies and, as time goes on, take on additional responsibilities.
“Ongoing performance management helps employees develop their skills faster.”
Shows the Way to Improvement
Not only does ongoing performance management detail goals for employees to meet and therefore advance, but it also makes sure they keep improving throughout the year. Instead of an annual review that attempts to sum up both triumphs and mistakes over 365 days, frequent check-ins allow managers to celebrate achievements and correct actions shortly after they occur. This helps employees develop their skills faster while keeping mistakes to a minimum, making them more productive overall. It is this process of constant growth that prevents employees from falling behind and getting terminated for poor performance.
Supports a Collaborative Environment
Ongoing performance development™ is an experience in collaboration between management, executives and individual employees. It’s not a situation where people at the top dictate what everyone else does. Instead, everyone works together to create goals that benefit their aspirations and company as a whole. Having such a healthy, collaborative work environment goes a long way toward preventing employees from leaving.
In addition, ongoing management replaces rankings where employees are evaluated against each other. Instead of becoming competitors where the failure of one means the success of another, each individual contributes to the success of a group. They work together on goal setting and continue collaborating to achieve them.
If you want to keep turnover to a minimum, there’s no better way to do so than ongoing performance management. Combining goal setting measures with frequent check-ins makes employees feel valued and respected.