Best Performance Management Practices for Today’s Workforce

What is Performance Management?

Performance management is a set of practices used to measure and evaluate employee performance
and professional development. By clarifying expectations, identifying goals, and providing feedback,
performance management helps employees develop their skills and work more efficiently. It also
helps align individual goals and career progress with larger organizational goals.

Traditional performance management consists of formal, annual performance reviews. But for many
workplaces, this performance review process is no longer effective. In today’s environment, new
generations, remote work, and other changes call for new performance management models.
The practices that work best for your business will depend on your employees and unique business
needs. In general, though, performance management best practices are:

1. Share the big picture

Clearly explain how employee performance aligns with your organizational strategies, mission, and
goals. When you show employees how their personal achievements contribute to overall success,
they’ll feel more motivated and connected to your company.
2. Reevaluate and update KPIs
The rise in remote work has changed business strategy and individual role responsibilities. To address
this shift, reevaluate your organization’s Key Performance Indicators (KPIs). If necessary, define new
KPIs.
For example, you may want to measure the productivity of your newly remote workforce. To do this,
set new KPIs for things like self-discipline and effective communication. Do employees meet their
deadlines? How does their current performance compare to their performance in the office? Do they
respond to emails and messages on time? A few simple tests, like asking employees to respond to an
email by a certain deadline, can help you assess these metrics. You should update your KPIs anytime
you experience a major business change.
3. Set SMART goals
Goals and expectations are the foundation of any performance plan. After all, they drive success and
determine the future direction of your organization. Yet only 50% of employees know what’s
expected of them at work.
When you reevaluate your KPIs, take the time to set goals that reflect your current strategy and vision
for the future, too. Make sure your goals are well defined so employees understand what’s expected.
You can use the SMART method to set effective goals:
 Specific – The goal should be clearly defined and use exact numbers and figures when
possible
 Measurable – The goal should be quantifiable, with metrics you can use to track progress
 Actionable – The goal should be realistic and attainable
 Relevant – The goal should align with your broader organizational goals
 Time-bound – The goal should have clear start and end dates or deadlines

4. Involve employees in the process

Your KPIs and goals directly affect your employees. If they’re unrealistic, your employees may feel
alienated and unmotivated. You can avoid this by making sure employees have a voice in the process.
After all, employees who feel heard are 4.6 times more likely to feel empowered to do their best
work.
Ask your employees for their feedback and opinions through surveys or interviews. You’ll improve
employee engagement while gaining valuable input about your performance management.
5. Provide frequent, actionable feedback
80% of millennials prefer on-the-spot recognition as opposed to formal reviews. In addition, 63% of
Gen Z workers want constructive, timely feedback throughout the year.
Continuous performance feedback meets shifting workforce needs. It also provides better insight into
overall employee performance and strategy. You have more opportunities to check in with employees,
measure their progress, and provide feedback. How are they doing? Are they encountering any
problems? Do their goals still make sense? Based on their answers, you can then adjust their goals or
find new ways to support them.
Try using daily or weekly check-ins or individual or team meetings as touch points throughout the
year. This will create an ongoing performance management cycle instead of the traditional annual
review or quarterly check-ins. More frequent feedback benefits both employees and managers.
6. Recognize employees for their work
20% of employees said that feeling under-appreciated for their work hindered their engagement.
Another 74% wished that they received more recognition at work. Recognizing employees for their
work makes them feel valued. Sharing their achievements with the rest of your company can offer
further motivation. If you can, send out company-wide emails and announcements celebrating
employee achievements. This can be especially helpful for employees who need that extra push to
reach their goals.
7. Reward performance
Similarly, you can reward performance when an employee or team meets a certain goal or performs
exceptionally well. Rewards encourage strong performance and offer extra motivation.
Before you decide to reward performance, be sure to establish specific criteria that will merit a
reward. This will help you stay consistent and ensure your employees know what they need to do. For
rewards, consider:
 Bonuses
 Gift cards
 Company swag
 Extra vacation days or time off
 Donations to a charity of the employee’s choice

8. Offer additional training

74% of surveyed employees say they aren’t reaching their full potential due to a lack of development
opportunities. When it comes to performance management, consider future performance alongside
current performance. Providing opportunities for growth shows your employees that you care about
their future. You’re willing to invest in them and help them reach their goals.
9. Turn around poor performers
Even with a robust performance management system, you may have employees who consistently
underperform. If this is the case, there are a few steps you can take to turn their performance around.
First, address the issue as soon as possible. Sit down with the employee one-on-one and explain why
their performance isn’t meeting your expectations. Give them the opportunity to express (not defend)
their concerns and any personal matters. Then, work with them to develop a performance
improvement plan that includes:
 Clear goals – Identify training programs, tools, and other resources that will help your
employee improve their performance. Consider online lessons or guided mentorship from a
senior employee. Then, set goals with specific deadlines for the employee to work towards.
 Feedback – Check in with the employee regularly to assess their progress and offer support.
What improvements have they made? Where are they still struggling? The more specific your
feedback is, the more helpful it will be.
 Recognition – When the employee makes improvements, be sure to acknowledge their
efforts. Offering praise like a simple “good job” can assure them that they’re on the right
track.

10. Trust employees

Last but not least, trust your employees. Performance management means holding employees
accountable. But it also means understanding that no one performs perfectly every day. If an
employee doesn’t meet a goal or deadline, that doesn’t mean they’re incompetent or disengaged. If an
employee is struggling, communicate and ask how you can support them.
Of course, if performance becomes a recurring issue, then it may be time to have a more serious
conversation with the employee. If they aren’t trying to turn around their poor performance, it may be
time to let them go.
Performance Management with an HRIS
These performance management best practices set clear expectations and engage your employees.
You can easily manage performance with an all-in-one HRIS like SentricHR.

SentricHR talent management software combines performance management with goals, training,
payroll, and everything else you need. With our ready-to-use and customizable performance reviews,
you can assess employee performance at any time. Your employees can also access and complete
their reviews directly in SentricHR for full transparency throughout the year.

Typical steps in the

performance management
process
1. Goal setting: It’s about more than hitting milestones. Goals empower people to
collaboratively set individual and team objectives in the context of the evolving
business.
2. Feedback and coaching: Hitting targets is one thing, but it’s also how we achieve
goals that’s key. That’s why business leaders should implement practices people can
use to seek feedback on how they performed and what they can do better.
3. Performance evaluation: Managers and their teams must be equipped to assess
employees’ performance fairly, as well as how they contributed toward business
priorities. This then informs the next set of goals.

10 tips to improve the

performance management
process
Of course, evolving performance-review thinking isn’t accomplished overnight. Here are
10 straightforward tips for how to improve the performance management process.

1. Start slow, ideally with a single department. Try a new system driven by
cascading goals with one department or business function, such as IT or finance,
rather than roll out the new assessment process to everyone simultaneously. With
that one function, note the key learnings and adjust the new performance
management system as needed before rolling it out to other departments. By the
time the entire company uses the new system, it should be working well.
2. Use technology, particularly for cascading goals. It should be easy to keep track
of who’s responsible for what. That doesn’t mean using a Google spreadsheet. Use
a simple, intuitive performance tool that offers broad visibility and easy access for
everyone so that completing or modifying a goal takes mere seconds. Ideally, you’ve
also started with a department where one or more midyear changes in objectives are
 likely, so this will give you the chance to test out the technology in a fluid, real-world
situation.
3. Apply what you learn with continuous performance management to end-of-year
reviews. If you’re going to use a system of continuous performance management,
make sure you leverage its power in the time and place where it truly counts – at
end-of-year review time. Use the system to inform and report employee
evaluations, and compare the experience with the review process the year before.
How was it better and what were the deficiencies?
4. Keep it simple. Start with standard goal templates and then edit them to fit each
department. Many companies are looking for the same types of positive feedback,
such as being a good team player, good communicator, or effective project
manager. Modern performance management tools can provide goal templates that
are already 80% complete, which makes the process easier for everyone to adjust to
and continue to use on a daily basis.
5. Listen to your people. Find out how everyone feels about the new system, from
entry-level employees all the way up to the executive level. Does continuous
performance management help people do their jobs better? Also look at the
business. Does it perform better with people more in touch with their goals on a
rolling basis? Is retention stronger? Implement HR metrics that tell the story of how
the new system is performing.
6. Use technology to gain insights and identify issues early. Distracting or
irrelevant topics written or said during the performance management process aren’t
helpful and can create liability for the company. Implementing a legal scan feature
will enable the performance review system to flag certain words loaded in by the
manager, particularly problematic terminology that could lead to incomplete reviews
or legal disputes down the line.
7. Start thinking ahead in terms of your broader ecosystem. Don’t just think about
which departments or functions you’re rolling out a supercharged performance
management process to next. Think about how you’re going to augment the
performance management system with other cloud-based applications to create a
better overall experience, such as incorporating learning and skilling solutions. This
will allow you to make an improved performance management process integral to a
broader HR strategy that provides both a better view of the organisation and a better
experience for people.
8. Train managers and employees alike to develop buy-in. Managers are the
gatekeepers of the new process. If they don’t buy into it and explain its value,
employees won’t buy into it either when the new system rolls out across the
enterprise. Both managers and their people must be able to incorporate the new
system into their daily routines easily, as well as believe in the value it will
bring. That’s why executive sponsorship is critical as well.
9. Let the new process drive rewards and recognition. An effective performance
assessment system should leave no ambiguity in terms of how performance is linked
to compensation or recognition. And over time, HR should check if it’s being
consistent with who is rewarded in which ways and how often. The process must be
fair for people to embrace it.
10. Always look for improvement. The performance review is never going to be
perfect, so look at the data and talk to people about what worked well for them and
what didn’t, then make adjustments accordingly. The more you work at improving the
process, the more motivated and engaged people are likely to become with both the
system and their work.
Evolved thinking and embracing a new, effective, agile process requires a system that
can support it. The alternative of using outdated, ineffective, and inefficient systems – or
doing nothing – isn’t a viable option either. Companies that can tie a better performance
management system to better business results will quickly separate themselves from
those who chose complacency over the status quo.

7 Performance Management
Strategies for Manufacturing

1. Line-shift goals.
When tasks are routine, it can be easy to lose motivation or burn out. Team and
individual goals give employees a purpose that makes their environment fresh and
exciting.

Distinguish clear and concise goals for each line shift or individual. The goals that
get communicated the most are what your employees will pay attention to. For
example, if your goal is safety, encourage employees to keep their workstations
clean to prevent trips or falls. If the goal is output, create a goal that outlines the
desired amount of product produced per hour.

Be specific to help employees best reach goals and create business outcomes.

2. Individualized conversations.
The fast-paced nature of the manufacturing industry can make 1-on-1s difficult. But
creating space and time for monthly conversations with each employee is important.
This can be a simple 2-5 minute conversation to ask employees how they are doing.
Leveraging these conversations makes employees feel heard and appreciated.

In addition, regular check-ins allow leaders to stay updated with the challenges and
successes of their employees. This helps leaders provide the feedback and
recognition that employees need to stay productive and engaged.

3. Alignment initiatives.
Leaders should leverage transparent communication to align employees’ daily tasks with
organizational outcomes. By providing insight into the company’s broader vision, employees
will better understand the importance of their efforts. In turn, their motivation and
productivity increases as they see the fruits of their labor.

Also, your alignment strategies let employees know that their role is valued by the company,
from top to bottom. This boosts respect and appreciation to increase the employee
experience. Communicating the relationship between employees’ tasks and company-wide
outcomes is essential to safeguarding employee alignment and productivity.

4. Continuous listening.
Your employees need to feel valued and listened to. An effective way to do this is by asking
for and leveraging their feedback.

Your frontline employees are on the floor everyday, hands-on and pushing outcomes. They
have valuable insight into what processes and systems can be improved upon to be more
effective, efficient, and engaging.

Effective listening strategies are a win-win. The right employee feedback can increase output
and revenue, while making employees feel respected and acknowledged.

5. Regular check-ins.
A key component of any effective performance management strategy is regular check-ins. In
any industry, teams and leaders should regularly communicate to address agendas,
challenges, goals, and successes. To create high performing teams in manufacturing, leverage
on-the-spot conversations. This includes shift huddles, recognition, and quick team meetings
when possible.

These check-ins can serve as encouragement opportunities to boost employee morale.

Employees can also leverage check-ins to discuss possible concerns or roadblocks. When
leaders and teams are on the same page, productivity, safety, and employee engagement
levels increase.

6. Development and coaching initiatives.

Close internal skill gaps by providing certifications, training, and learning opportunities. Give
employees the opportunity to up-skill or re-skill. This helps employees feel like they have a
future at the company and makes your understanding of their high potential clear.

Another valuable way to encourage employee growth is by training managers to act as

coaches.

Create an environment of trust to ensure your coaching initiatives are effective and helpful.
Give feedback (and ask for it), offer solutions to challenges, ask questions, and provide
simple, direct tips to help employees build their skills. This approach helps build connections,
communicates respect, and helps employees grow.
 7. Performance management software.
Implement an integrated performance management software to streamline every facet of your
performance strategy. In doing this, you engage and motivate employees to do their best
work. You also give leaders the visibility they need into the workforce, performance, and
talent risk.

Look for a performance management platform that offers you these features:

 Goals make business objectives clear and align teams and individuals across locations,
departments, and levels. Effective goal-setting tools allow employees to create key steps and
track their progress on a platform visible to the entire organization.
 1-on-1s increase connections between supervisors and workers, create a culture of care, and
improve communication and alignment. The best 1-on-1 platforms provide customizable
templates to ensure that all points of interest are touched on in each conversation.
 Feedback helps you give and receive the performance feedback that could impact the metrics
you care about the most. Great feedback platforms leverage a transactional model where both
managers and employees can provide and gather feedback.
 Recognition elevates big and small contributions that impact business success, showing
employees that you see and value their hard work. Leverage a peer-to-peer recognition
platform to increase alignment and appreciation from top to bottom.
 Talent reviews help leaders understand the big picture of their talent, assess employee talent,
and prepare leaders for talent risk. Make strategic talent decisions with effective talent review
tools.
 Surveys enable leaders to listen to their workforce and build strategies, systems, and
processes that are realistic and meaningful. The best platforms provide regular surveys to
keep leaders attuned to their employees thoughts, perceptions, and suggested tips for
improvement, big or small.
 People analytics create more visibility and an increased understanding of what’s happening
across the workforce so leaders can understand, avoid, and manage risk and talent effectively.
Effective platforms make employee data visible in real time to identify workplace
opportunities and threats.

Benefits Of Performance Management in the

Manufacturing Industry
The manufacturing industry has been slow in adopting the monthly or weekly performance
appraisal for the employees. Strategic employee performance management will help the
industry get insightful data to make informed decisions. Following are a few benefits of
performance management that might help organizations to achieve their goals.
 Performance management in manufacturing helps you to align the company goals and values
to an individual’s goals.
 Goal setting improves the morale of employees and they feel motivated to put higher efforts
into their work to achieve improved quality and quantity of their work.
 The performance appraisal from the colleagues as well as the managers helps employees to
get a better view of the aspects where they can improve their performance.
 A performance management system improves the transparency of the review and ensures that
the employee gets an unbiased appraisal.
 The individual goal and the appraisals also increase the sense of responsibility and
accountability in the workers.
 The continuous performance appraisals allow you to gather important employee data which
helps HR and management to understand the upskill requirement for particular employees so
the performance can be increased with targetted efforts.
 Performance management in manufacturing also helps to harness healthy competition among
the workers which increases an individual’s drive for better performance.
 performance management in manufacturing also helps to evaluate the output of the
employees on various aspects such as quality of product, safety concerns, and customer
service.
 It helps you to gather meaningful data to improve the productivity of the company.