The benefits of individual-level performance management
Performance management is an essential component of organizational success. It enables managers to track, assess and improve the performance of their employees. Often, performance management is seen as a top-down process, with goals communicated from management to employees. However, the benefits of performance management become clearer when we look at it from a bottom-up perspective, focusing on the individual employee. In this blog, we dive deeper into this perspective and demonstrate how individual-level performance management contributes to achieving organizational goals.
Benefits for the employee
Both organizations and employees experience benefits from performance management. Therefore, let's examine performance management from the perspective of the employee. We highlight the advantages that performance management can have for employees and provide further explanation for each.
Gain a better understanding of the key responsibilities of their role;
Have the ability to self-correct when necessary;
Feel more valuable;
Experience increased motivation and productivity;
Feel appreciated due to attention given to their talents and motivations;
Enhance the work environment;
Adopt a more solution-oriented approach;
Improve communication and collaboration.
The importance of a bottom-up approach:
Looking at performance management from the employee's perspective is the bottom-up approach. This approach allows us to see the effects and benefits of performance management more clearly. An example that highlights the importance of this bottom-up approach is a conversation between an employee and her manager. During this conversation, they discuss three organizational goals and the corresponding indicators. Together, they examine how the employee's work contributes to achieving these goals. They also formulate personal objectives that align with the employee's growth ambitions. This provides her with a better understanding of the key responsibilities of her role and the ability to make adjustments if necessary.
Individual engagement and motivation:
The conversation between the employee and her manager has a positive impact on her sense of value and motivation. Here, we can also observe the benefits of performance management. She feels appreciated and acknowledged because her own motivations and talents are given attention. This feeling also radiates to her team members. There is a greater understanding of the shared goal, and the team atmosphere improves. They work together to resolve any uncertainties and collaborate more effectively. The individual motivation of each employee contributes to a positive team spirit.
Productivity and results:
Other important benefits of performance management at the individual level are increased productivity and goal achievement. By working together towards the same objectives and having a clear understanding of their contributions, communication and collaboration within the team improve. This leads to more efficient work and a higher quality of output. The management observes these positive effects within the team and can celebrate successes accordingly.
Want to learn more?
The impact of performance management is best seen when we adopt the bottom-up perspective. By involving individual employees in goal setting and providing them with insight into their contributions to organizational goals, we foster engagement, motivation, and better teamwork within the team. This directly benefits both your employees and your organization. If you want to learn how to implement performance management in your organization? Download our whitepaper on 'performance management' and read more about it!