10 Performance management strategies to foster growth

For a business to thrive, its employees must be able to perform to the best of their abilities. To help with this, you can start implementing performance management strategies. Simply put, a performance management strategy is a systematic way of monitoring employee performance and making sure their efforts align with the company's goals.

It’s essential to any workplace as it boosts overall productivity, commitment, and retention rate. Read our 10 handpicked performance management strategies to discover how to leverage and maximize your employees’ potential today.

Why is performance management important?

The recent years have posed significant challenges. Companies had to navigate the changing work landscape — from battling cybersecurity issues to recovering from the pandemic, and more. In the 2024 Global Talent Trends, Mercer, the top provider of human resource management, reports that increased productivity is the catalyst for 98% of organizations to introduce work design changes this year.

This is where performance management comes into play. In essence, it’s all about establishing solid communication between the manager and the employee to optimize efficiency at work.  

Performance management strategy #1 - Share the company vision

The best way to unite your team is through a shared vision. By communicating this to your employees, you can make sure their efforts are aligned with the company’s overall goals. It also creates a sense of solidarity among your team, knowing that you’re all working toward the same thing. 

A shared company vision serves as the employees’ driving force for performing well. When they’ve taken the company’s goals to heart, it becomes their guiding principle in every task they do. One great way to consistently communicate the company's vision is by integrating it into your refresher courses or monthly assessments.

With mobile-first learning platforms like SC Training, information is delivered in bite-sized lessons that can be taken any time of the day, without disrupting anyone’s workflow. Its manager dashboard provides actionable reports so you can monitor individual progress, all in one place.

Track every interaction using the top performance management platform.

Performance management strategy #2 - Create clear goals

On a more concrete level, it’s also important to create clear goals. This performance management strategy is an effective way to keep your employees motivated as it offers transparency while giving everyone a clear picture of what they’re working toward. 

Adopt popular goal-setting frameworks like Objectives and Key Results (OKRs) or Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) criteria to help you manage your team efficiently. You can use these to assess their performance and draft improvement plans when necessary. Overall, having clear goals keeps your employees active and focused.

Performance management strategy #3 - Host regular meetings

Because performance management techniques are all about maintaining solid communication between the manager and the employee, conducting regular meetings gives you a pulse of how everyone’s doing. It also helps address concerns early on so you can develop solutions to keep everyone on track with the team's goals. 

Initiate weekly or monthly meetings according to what suits your team best. To guarantee that meetings run smoothly, distribute copies of the agenda and study these management training topics to drive your team’s success.

Performance management strategy #4 - Appreciate achievements

Appreciating achievements is one of the best performance management strategies to incorporate. Organizational research shows that when employees are praised for their achievements, it creates a healthy work environment and inspires them to do better. Who wouldn’t want their efforts to be recognized by their boss? You can reward them by giving out bonuses or promotions.

But remember that appreciation doesn’t always require a grand gesture — it can be as simple as giving them a shoutout on the channel, congratulating their work anniversaries, or initiating a team lunch. Trust that these small efforts will make a huge impact on your employees.

Performance management strategy #5 - Establish mutual trust and respect

To promote a culture of belonging and security in the workplace, it’s essential to establish mutual trust and respect with your employees. They need to see their leader as someone who understands their struggles and won’t abandon them during hard times.

If you want to learn how to build trust among your team from a manager’s perspective, there are plenty of free courses to help improve your interpersonal skills. Strategic performance management is not just about evaluating employee performance — it’s a two-way dialogue that requires your active participation too.

Performance management strategy #6 - Give timely feedback

While it may seem intimidating to do regularly, research shows that 87% of employees are less likely to leave when they feel highly engaged in their role. Compared to those who don’t receive feedback, employees in constant communication with their boss feel more challenged and satisfied. Giving timely feedback is one of those performance management methods you shouldn’t miss.

It’s difficult for employees to know which areas to improve when they’re unaware of their shortcomings in the first place. As a leader, it’s important to communicate with your team effectively. But remember, you’ve got to be smart about it! When feedback is given poorly, it leads to feelings of incompetence and frustration.

You can avoid these by taking up free training performance management programs to facilitate smooth conversations at work.

Performance management strategy #7 - Use digital documentation

Let’s face it, we’re all living in the digital world now. So many projects and assignments can be done without the need for paper. Not only does this allow for smooth access across teams, but it’s also cost-effective and easy to monitor in the long run.

So why not incorporate digital platforms into your workflow? With platforms like SC Training, measuring employee performance has never been easier. Its admin experience allows you to monitor their analytics all in one place while also giving your team a space to voice out their concerns through the survey feature.

Performance management strategy #8 - Invest in continuous learning

A key component that drives a company’s success is its employees. Investing in continuous learning allows your team to grow their skills so they can perform better at their jobs. At the same time, it also sends the message that you care for their professional growth. A win-win scenario for all.

Upskill your employees with performance management methods like mentoring sessions, webinars, or online training. There are plenty of platforms out there that make workplace learning feel more like a game – not work. A good tip is to select those with gamification features so you can keep your team engaged while making sure they’re getting the essential training they need.

Performance management strategy #9 - Offer mental health support

Assure your team they belong to a safe space. While others may see this as a challenging topic to bring up, it doesn’t have to be the same for you. In recent years, mental health awareness has become a vital element in the workplace. Having survived a global pandemic, we’ve all had to battle feelings of isolation, burnout, and loneliness.

Remember that performance management strategies aren’t limited to tangible results. It’s also about making smart decisions when things get tough for your team. Make sure to prioritize communication, and offer flexible development plans and sufficient mental health resources. Let employees know you’re with them every step of the way.

Performance management strategy #10 - Use a centralized performance management platform

If you haven’t integrated performance management techniques like this into your current workflow, now is the best time to do so. It streamlines the management process and offers a centralized database for everyone to follow. You can set team goals, performance reviews, and training in the same space. 

A great tip is to choose a centralized performance management platform that keeps things simple and allows you to incorporate existing digital documents so you don’t have to switch workflow stations. Not only does this save time but manpower and money too!

What is the most effective approach to performance management and why?

While there is no one-size-fits-all approach to strategic performance management, here are three proven ways to maximize team productivity:

• Be transparent. As a manager, the change starts with you. Keep your communication lines open so no employee is left in the dark. Not only does this show your willingness to be held accountable, but it also inspires your team to practice the same. 
• Foster a healthy working environment. Creating a safe space at work makes your employees feel heard and recognized. Promote work-life balance and offer steady support during both the good times and the bad. 
• Develop flexibility. With all the emerging trends each year, you must learn how to adapt to the evolving landscape. Acquire new skills and competencies so you can face every challenge head-on. 

Enhance your performance management strategies with the best training platform. Sign up with SC Training today.