Enhance staff retention rates with performance management
Performance management should consist of planning, monitoring, developing, and rewarding performance. These factors of performance management can have a favourable effect on staff retention rates – and neglecting these factors can lead to adverse retention rates.
- Employees expect to fully understand their role and what is expected of them. This ‘planning’ aspect can be aided by managers.
- Managers should then monitor performance to provide time-relevant feedback and the associated regular coaching opportunities, so that ‘communication becomes more fluid and managers are kept informed regarding progress and any potential issues’ .
- This coaching should lead to future development opportunities for the individual to broaden their skillset, either through formal or informal training. After all, if your top talent believes that there is no room for advancement or promotion, ‘it is unlikely that such a driven individual will remain with you for long’ .
- Finally, employees should be praised for their efforts. ‘Taking the time to reward your employees for a job well done is a small price to pay when you consider how it can drive corporate results and boost employee engagement’ .
Conversely, poor communication, unclear deadlines, lack of recognition and excessive criticism, and limited opportunities for progression can harbour a feeling of sourness in the workplace.
Ideally, organisations should be looking to re-imagine the performance management process to keep up with the ever-changing needs of the modern worker. Employees expect to take responsibility for their own development within an organisation. Employers can aid this by implementing an online system that allows both employees and managers to contribute their thoughts, concerns or praise in a transparent manner, allowing both parties to add comments to the other’s additions. With the war for talent at an all-time high, organisations are competing against each other to retain the very best talent on the market. They can improve their reputation on the market by improving staff relations and communications, and many organisations are relying on online performance management tools to offer the ability to store and track communications in one system.
Online performance management tools should allow both employees and managers to align their objectives to ensure that common goals are being achieved – whether they include personal goals, team goals or even organisational goals.
Once in place, online performance management systems allow for efficient planning, monitoring, developing and rewarding of performance. Recognition and internal progression help employees to feel valued; a critical factor to improve employee retention rates.
 The HR Observer, ‘Improve staff retention with performance management’