As a provider of performance management software, we get asked questions about the subject all the time. Companies want to know how they can benefit from performance management, and how their managers and staff can learn to adopt tools and improve productivity.
Below, our People Science Advisor, Ananya Dhall has answered some of the most frequently asked questions we’ve received about modern performance management.
We’re always keen on helping out our customers (both potential and prospective), so if you have more pressing questions or concerns, feel free to book a personal demo with us. We’ll make sure to answer your questions and show you our software, too!
FAQs on Performance Management
Q1. How do you standardize the performance review process while scaling your organization?
A. HR tech platforms can help drive a standardized process while scaling up. Your organization should emphasize the importance of following a standard process top-down. This can be done via role modeling, discussing key activities and milestones in meetings, and constant communication.
Q2. How do you create a performance management process for a diverse set of employees, from tech to sales?
A. The best practices of performance management are not limited to a particular set of employees or industries. The underlying ethos of enabling continuous goal management and continuous conversations for development while driving transparency and accountability are significant in the modern world of work and surpass any boundaries of function, industry, or geography. So there is no one-size-fits-all when it comes to designing a performance management system - and the best ones are always unique to the organization and its context and its culture. Key expectations from a successful modern performance management process are:
- Clarity of what one is expected to achieve and the outcomes to be delivered.
- Real-time conversations including both advice for improvement and praise for a job well done.
- Fairness and transparency in reviews.
- Focus on elevating performance and not just rating employees.
- Simplified and efficient processes.
- Real-time insights that enable effective decision-making.
Q3. How do I manage salary expectations when the market is open to 3-4x the pay?
A. While higher pay packages and a high demand for talent is a reality we can’t ignore, the past few years have shown that people are also looking for a lot more than just pay. It’s important to understand your workforce. Managers should develop deeper connections and see what truly works for their team members/what they are seeking - for example, individualized career maps, relevant opportunities for self improvement and development, flexibility to work from anywhere/anytime, the chance to make a real impact in the world, or contribute to the company.
Q4. How do we build an effective process when setting OKRs for the first time?
A. Here’s our recommendation:
- Start small. Pick up OKRs for a select few functions with 2-3 objectives prioritized at first.
- Communication around OKRs and progress is key. It’s important to not just set it and forget it. Have regular check-ins, focus the conversations on driving performance improvement to achieve them. Having an in-house OKR champion who is responsible for this, as well as commitment from the leadership is key.
- Drive alignment. Objectives shouldn’t just be function-specific, business-as-usual activities. OKRs are about aspirational goals that a business wants to achieve. More often than not, they require cross-functional collaboration to be achieved. Ensure that you are driving alignment while articulating objectives.
- Keep the objectives aspirational and transparent. OKRs give organizations an edge when they align contributions, drive transparency around how individual efforts relate to org priorities, and rally the troops around the Big Hairy Audacious Goals. Break out of the status quo to build, improve, and innovate.
- Hold retrospectives. OKRs are iterative, so course-correction is key to the philosophy.
Q5. How many goals are too many goals?
A. We recommend no more than 3-4 goals to be chased at once. Otherwise, it derails focus and your degree of investment in each of them.
Q6. Can public appreciation go the wrong way in high-performing, small teams?
A. Appreciation can be used to keep the level of enthusiasm and engagement going in high-performing teams. Whether the teams are small or large, appreciation is proven to be received the best when done for more than one individual at a time.
- Praise the contributions or impact of 2-3 people at a time.
- Make the appreciation meaningful. Ensure that you call out their actions and the impact it had. Eg: Don’t just say, “Good job, Pete!” Say something meaningful like “I really appreciated you doing X because it helped us with Y.”
Want to make performance management more meaningful?
Check out Mesh - our performance management tool that can help you move from antiquated annual appraisals to regular, meaningful performance conversations. To find out more, book a free demo today.