How important is performance management for your business?

Just like all other aspects of your business, performance must be constantly monitored. It is perhaps the main indicator that your company is on the right path and it’s taking the right measures in order to keep growing and fulfilling your vision.

Performance can be tracked by means of sales numbers, social media engagement, marketing leads and more. It is important to always check this numbers, as you can get an idea of where your business is in point of performance compared to where you want it to be.

Managing your companies’s performance is particularly important for your employees. Creating and maintaining a formal performance management program helps both managers and their employees see eye-to-eye on expectations, objectives and progress, and most importantly, how all those things align with the company’s vision.

Nowadays, the focus on measuring and encouraging employees’ performance and productivity is unprecedentedly high. Companies all over the world are taking part in an industry-wide initiative meant to understand and quantify how much their employers are really doing and how efficiently they are doing it.

Naturally, this formal performance management system draws on a set of pre-established rules and objectives, against which each employee can be measured and evaluated. It should encourage learning and development, in the interest of higher business performance. Ultimately, employees should be motivated to improve their skills, competencies and delivery of results.

So should you make performance management a priority in the long list of business tasks and objectives? Yes, because it encourages an ongoing form of accountability from your employees. Instead of a sudden rush to meet the established objectives before an periodical meeting / review, constant performance monitoring prompts a steady yet continuous push for progress.

Such a system improves communication between managers and employees. By making a habit out of gathering more often to discuss objectives and progress, they can get a better idea of the current performance situation and propose measures to be taken for its improvement. Also, it helps lay down a set of rules so that both employees and managers can easily understand the process and stipulations for how performance evaluations are performed.

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