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Pros and cons of performance management
Employee performance management is practically one of the most crucial business processes. For this reason, you need to figure out what kind of employee performance management will be the most efficient for your company. Mainly, there are two types of employee performance management: qualitative and quantitative employee performance management.
Qualitative employee performance management means that the employee should set a goal clear in his mind and have enough time (normally at least three months) to achieve it. On the other hand, quantitative employee performance management can be done by measuring work progress by measuring indicators such as elapsed time and the number of tasks completed towards an expected output or result. It's also necessary to consider weekly work hours and possible overtime when using this employee performance management example.
Each company owner or manager should consider employee performance management examples depending on business objectives, industry specifics, work culture, available resources, etc. There are some pros and cons which you need to know about employee performance management before making your decision.
Pros of employee performance management:
- Employee engagement
- Higher employee motivation
- Enhanced ability to retain good employees
- Improved chance of controlling costs
- Increased transparency for managers
- Quick reaction to changes in the market environment
- More efficient planning and forecasting process when using employee performance management software
Cons of employee performance management:
- Employee performance management can't provide 100% accurate results
- Employee performance management has a lot of limitations because employee performance and employee productivity can't be measured and monitored all the time (there can be many unexpected factors that influence employee performance)
- Employee performance management takes a lot of time and effort
9 practical examples of performance management for businesses
Employee performance management examples can vary depending on the business industry, company size and objectives. This is why there are at least nine performance management examples that you can use for your own company: employee performance management by employee group; employee performance management by employee; employee feedback; employee recognition; goal-setting; peer review; 360-degree feedback; coaching; employee performance management software.
- Employee performance management by employee group means that managers are responsible for the employees' performance based on their groups (e.g., executive assistants, customer service representatives, customer support team etc.).
- Performance management by employee suggests dividing all employees into groups according to skills needed to achieve the company's objectives. For example, employee performance management for marketing and sales department employees should be different from those in the IT sector because business objectives and work culture can be significantly different.
- Employee feedback is a good employee performance management example that helps improve the existing employee performance management process: you should ask your employees what could be done better or differently to increase employee performance.
- Employee recognition is an employee performance management example that focuses on rewarding good employees for their great work. It can be done in many ways: formal employee of the month awards, employee bonuses, employee gifts etc.
- Goal-setting is one of the best employee performance management examples because it's closely related to both employee performance management software and employee performance management by an employee. Goal setting process can be done with the help of modern performance management software or using a manual method.
- Peer review is employee recognition that shows how co-workers appreciate each other for good employee performance. It's one of the best employee performance management examples because it boosts employee motivation and increases employee engagement.
- 360-degree feedback is an employee performance management example that includes evaluating employee performance with the help of several managers (manager, subordinates, co-workers etc.). 360-degree feedback helps evaluate each employee more accurately since there are several opinions about employee performance.
- Coaching is an employee performance management example that can be done with the help of employee performance management software (there is employee performance management software like BetterManager available) or without it (especially in small businesses). Coaching includes providing employees with advice and recommendations on how they can achieve better employee performance.
- Employee performance management software is a great employee performance management example that can help managers to manage employee performance and develop their leadership skills. Employee performance management software consists of employee feedback, employee recognition, goal-setting and employee coaching applications.
10 brands and their performance management strategies and examples
Top brands all around the world use employee performance management examples like employee feedback, employee recognition and goal-setting to develop their business strategies. Here are some employee performance management examples that top brands around the world use:
- Video games industry: Top brands in this industry create employee performance management examples by focusing on employee appreciation and setting employee goals. For example, Valve Corporation is a well-known software company that released an employee performance management tool called “Kudos” that lets employees recognize each other. Besides employee performance management examples like goal setting and employee recognition, Valve Corporation uses employee feedback such as employee performance management. A typical example is that employees can leave notes on a software project if they have a new idea about it, which the team lead may consider when he makes a new update project plan.
- Airbnb employee performance management software (which can be found on BetterManager) is employee feedback/review that has employee performance management by employee feature.
- LinkedIn performance management metrics include employee goal setting, where employees set their long and short-term targets. They are further evaluated on how successful they were in meeting those targets. Also, this employee performance management example includes 360-degree feedback as well as employee recognition.
- Facebook employee performance management software helps managers to provide employee feedback/review and employee goal setting; employee performance management example also includes employee coaching.
- Microsoft’s employee performance management strategy is employee goal-setting, where employee's progress toward their goals is constantly monitored. This employee performance management example focuses on contributing to business growth as well as personal development of employees.
- Dell provides managers with employee performance management software which includes employee feedback/review application.
- Uber employee, performance management example, includes employee goal setting and employee recognition, employee performance management by peer (employees appreciate their co-workers for good work).
- Twitter employee goal-setting is one of the best employee performance management examples because it's an employee goal-setting by employee feature which allows employees to set their targets and track their progress. Employee performance management example also includes employee coaching.
- Disney employee goal setting an example is an employee performance management technique where employees set goals related to the company’s business metrics and employee development. Employee feedback/review application also comes with this employee performance management software.
- IBM employee performance management software is an employee feedback/review application (360-degree feedback) that allows employees to provide managers with employee feedback and make necessary improvements. This employee performance management example also includes goal-setting application.
It can be difficult getting the right performance management tool for small and medium businesses. Rather than getting expensive software and educating your whole team on it, download Matter's free Slack app and start giving constructive feedback and Kudos all inside of Slack. It comes with unlimited seats and feedback and is perfect for any team size.