Approximately 47.8 million Americans left their jobs during the Great Resignation of 2021. As a result, employers are searching for resources to improve retention rates such as performance management.
But, what is performance management, and how can it help businesses that are struggling to keep employees?
Performance management involves employee performance tracking to ensure maximum competency and productivity. While a great tool, it’s a tool that needs upgrading since the COVID-19 pandemic. Read on to learn more.
1. Improves Autonomy
One of the top benefits of employee performance tracking is the improvement in employee autonomy. Employee productivity tracking empowers staff to make their own decisions to get their work done.
This instills confidence while simultaneously boosting motivation in the workplace. When employees feel empowered, they are more committed to their work. The end result is a better work product.
2. Boosts Productivity
Many companies see a boost in productivity when they track their employees’ performance since it means more accountability. It also means more rewards for those that perform well, which results in quality work.
This also means more efficiency and fewer delays. Better productivity and efficiency save the company money as well as increase its competitiveness in the marketplace.
3. Helps Identify Areas of Improvement
Without performance tracking software, it’s difficult to understand how your business and employees are functioning. You can’t promote growth if you don’t look for areas of improvement.
Employee performance tracking highlights areas of improvement so you can act on them before they become a problem. This is especially useful in identifying under-performing staff who require additional training.
4. Builds Trust
Employee productivity tracking is an effective way to build trust between a business and its employees when done correctly. The key is to improve accountability and maintain consistency.
When staff see consistent use of these systems, they feel they can count on it and that it creates better fairness. Plus, it also offers them peace of mind knowing everyone is being held accountable for their fair share of the work.
5. Promotes Growth
Many workers want to take on positions that offer career mobility. One of the best ways to offer this is through employee performance tracking. For example, consider offering promotions based on this data.
Incorporating performance tracking software and rewarding high-quality performance shows employees you take growth seriously. This incentivizes them to pursue ongoing education and skill development.
6. Find the Right Employees for Promotion
While promoting growth within the company is important for a business, it’s essential that you find the right employees for promotion. Employee productivity tracking is the best way to find the right employees.
Not only does this give you an accurate picture of performance, but it also creates an equal baseline for all employees. It’s easier to avoid bias and prevents employees from being overlooked during the promotion process.
7. Increases Employee Retention
The combination of the factors above results in a boost to employee morale and job satisfaction. This also results in better retention rates which are great for maintaining a tight recruitment and retention budget.
You can also use high employee retention rates to attract high-quality applicants for future positions, especially since high turnover can make applicants hesitant to work for your company.
How to Establish Employee Performance Tracking
If your company is new to employee performance tracking, start by learning the right way to implement it. While it comes with plenty of benefits, it may take time to adjust to the system and to make sure it’s used effectively.
Set Your Goals
You have to understand what you want from performance tracking software before you can implement it. We recommend starting by setting your goals for the program. This will also help you introduce it to your employees.
A system that’s designed to improve accountability and performance will function differently than a system designed to find the right employees for promotion. Set clear goals at the beginning so you have a plan to follow.
Define Career Paths
If your goal is to find the right employees for promotion, be sure you have a system in place for this. Establish clearly defined career paths and share that information with employees.
Clear communication and transparency are important for retention, so be as transparent as possible. Make sure employees understand what it takes to move up to the next level.
Get Your Team Onboard
While a good system increases employee retention, you should avoid starting the program without giving your team a heads up. Even if performance tracking is meant to help make promotion decisions, it can be overwhelming.
Set time aside to discuss the program with your team. Highlight how the system works, what aspects of their job will be measured, and what the end goals are. Reassure staff that it’s a system designed to improve their jobs.
Find the Right Approach
The right approach combined with the right performance tracking software is a game-changer when it comes to establishing a new system or revamping an old one. Pre-COVID-19 tracking is also much different than it is now.
Employers who learn how to adjust to a post-pandemic business world can make the biggest impact on their process. See more here on how to adapt performance management for the post-pandemic world.
Make Time to Review
Once you have your system outlined, organized, and functioning, make sure you use it. Set aside time to meet with team members each month, quarter, or year depending on what works best for your company.
Discuss the details of your tracking and how the employee measures up compared to others at their level. You should also discuss plans for growth and set measurable goals.
Utilize Employee Performance Tracking
Employee performance tracking is beneficial to your employees as well as to your business. Not only does it improve accountability and productivity but it also boosts morale and increases retention rates.
To learn more tips and tricks to help your business grow, visit our blog.