Often, the need for “performance management” arises for companies right after difficulties with employees do—including no-shows, tardiness, and issues with work quality. Once these problems pop up, employers want to know what they can (or need) to do next.

What if I told you that you could use performance management as a tool long before these issues begin–so you could also reduce the need for termination? In this article, we’ll discuss how to implement performance management from the very beginning of an employee’s tenure, and sum up some of the benefits of having a holistic performance management plan. Read on!

What is the purpose of performance management?

Performance management is the process an organization follows to make sure employees know the roles they play and the objectives they’ll need to follow to be successful. With performance management, your employees will be better equipped to complete the duties assigned, and your organization will be healthier as a result.

So, why is performance management important to your organization? Because performance management gives employees and employers a game plan to follow to reach individual and company goals.

The benefits of performance management include the following:

• Increased employee motivation
• Improved employee morale
• Increased retention
• Consistency among departments

The Performance Management Process For Employers

There is no single model that illustrates a performance management process perfectly for every organization, because successful performance management should be tailored to the organizations that utilize it. We see this in our own PEO clients: The way a biotech company in Boston does performance management looks vastly different than how it’s done at an auto-body shop in New Hampshire. And it should!

However, while the details of performance management differ for each company, there are five basic phases of performance management employers should make note of and implement in their organizations:

1. Onboarding: Employers should have a documented onboarding program in place to follow every time a new employee is hired. You can learn more about best practices for employee onboarding here.
2. Training and coaching: In addition to an initial onboarding program, employees should have ongoing training opportunities provided by their employer. This training serves both the employer and the employee: Employees are provided with the tools that help them achieve their goals, and employers get workers who know how to do the things they have been hired to accomplish.
3. Regular conversation with employees: Talking to your employees regularly helps you know how and where they may need support to effectively do their jobs. It also keeps them apprised of your expectations for their role and your evaluation of them as they strive toward those goals.
4. Corrective action: Most companies have annual performance reviews, but frankly, this isn’t enough. Frequent conversations on a regular basis—not waiting until it’s time for an employee’s annual review—help you take corrective action early. As an employer, it’s crucial to document this corrective action thoroughly should you need to take steps toward termination of an employee.
5. If necessary, termination: Termination should be a last resort for employers, and following all the previous steps in this performance management process can help you avoid it. However, if it does become necessary, it’s crucial to have a written plan in place and documentation to support the decision to end an employee’s relationship with a company.

Stop wasting time and money on revolving-door employees. Optimize your hiring and onboarding processes with the Employee Lifecycle Roadmap.

Implementing A Performance Management Plan At Your Company

While performance management sounds great in theory, employers may be unsure of how to turn it into an actionable plan. If you’re not sure what steps you need to take, Genesis HR Solutions can help. The benefits of partnering with Genesis HR for performance management include:

We have experience creating and implementing successful performance management strategies that suit your specific industry.

We know what works best for every type of company, from tech to nonprofit, and can provide you with insight and a checklist to make sure you’re doing the things you need to do.

We’ll help you minimize risk and reduce your exposure to lawsuits.

We’ll help you establish a performance management process that protects your company in termination cases. Documentation, in particular, will become even more important in 2020 and beyond. With Massachusetts’ Paid Family Leave laws coming in 2021, we’re already working with clients to ensure that their performance management plans include thorough, full documentation of poor performance. If they need to move toward separation, our clients have strong documentation to support whatever transition is needed compliance-wise.

We help your company grow through performance management.

Performance management allows you to give positive feedback to your employees, institute growth goals, and provide ways for your employees to improve. At Genesis, we assist you with performance management by discussing and creating training plans with you to improve your employees’ skills.

We can assist you in creating a complete performance management plan overall, and assist you in preparing for difficult conversations. With these tools, you will be equipped to have the candid conversations necessary to boost productivity and decrease turnover rates at your company.

To learn how performance management with Genesis as your PEO might work for your company, contact us today.