One of the most fundamental areas where HR has to add value to companies/organizations is to manage and improve the outcomes of the Performance Management Process. HR’s accountability clearly goes beyond the setting and maintenance of a process to manage individual performance outcomes. The resource I will share here is however mainly focused on the individual aspect of the Performance Management Process – including some links to the salary/compensation review process and the individual development process.
This generic Performance Management Process shows the various basic steps that would need to be followed over a 12 month period to create an annual process. There are references to the link with a salary/compensation review process and also the link with identifying and reviewing individual development needs and progress along achieving improvement goals.
Performance Management Process resource link.
Implementing a process like this would need a change management plan if your organization has never done anything like this before. Even if you have had some form of a performance management process in place, but would now like to expand on it to include some of the elements shown in the attachment, a change management plan would be recommended. Before you start you would of course ensure that the manager/director, who is accountable for the performance management process at your organization, is aligned with your ideas and suggestions and strongly supports the direction you would like to take.
The benefits of having a documented process for Performance Management (like the shared resource) are:
- It is easy for HR to ensure new employees, current employees, new supervisors and existing managers understand the process and their role in the process.
- It is a way to help stakeholders understand and then prepare for the input and activities that need to be completed in order to support the process.
- Linked to a balanced score card, this process can make it clear to individuals/departments how they collectively and as individuals support the attainment of larger organizational performance goals.
- Knowing that there are check-in moments or feedback and discussion moments around performance expectations, progress and development needs and activities can be a strong way to reinforce employee engagement as many employees tend to consider other employment options when they feel that their development and career progression goals are not being met by their current employer.