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Guest Blog by Liliana Chitnis with NamanHR.

Employee performance is directly related to business performance and success. But, most managers and employers don’t give performance management the importance it deserves. If you want to improve your bottom line and productivity, it’s time to give this aspect of organizational development some serious thought!

There are some common problems that business owners and leaders face when it comes to performance management. Let’s look at these challenges and how you can overcome them:

  • Challenge #1 – Setting Goals and Milestones

Without clearly defined goals, workers won’t know what they’re supposed to be working to achieve.

Solution – Understand what you want for your business. Break that down into clear and specific goals that can be reached by your team within a certain timeframe. Communicate these to your employees, so they are aware of what they’re trying to accomplish and can plan how to make it happen.

  • Challenge #2 – Strategic Planning and Focus

Goal setting isn’t going to work if you don’t have a plan in place to help employees focus on critical goals.

Solution – To be truly effective, your performance management process should be aligned with company objectives. Design a strategic plan to help your team understand how their efforts contribute to critical goals, and focus on prioritizing tasks that impact organizational progress the most.

  • Challenge #3 – Proper Evaluation and Feedback

Without balanced and timely feedback, you cannot manage your team’s performance effectively.

Solution – Annual reviews are not enough, since they only address recent issues and accomplishments. You need to evaluate employee performance and provide feedback regularly. This helps every member of your team remain motivated, take ownership of problems and make improvements without delay.

  • Challenge #4 – Regular Coaching and Training

Employee assessment and evaluation are ineffective if they aren’t supported with ongoing training.

Solution – Plan and implement learning and development strategies that help employees grow both individually and as a team. With the right mentorship, coaching and skill development programs, you can improve employee performance, engagement and productivity at the workplace.

  • Challenge #5 – Leadership and Management Support

If you aren’t helping employees solve their problems, they have no reason to help you solve yours.

Solution – You can boost performance management processes tremendously by encouraging leaders and managers to provide guidance, help and support to employees. This boosts morale and loyalty at the workplace, increases employee retention and encourages your whole team to work harder.

  • Challenge #6 – Reward and Recognition Programs

Motivation and confidence cannot improve without appreciation for positive actions and behaviors.

Solution – Lack of appreciation and recognition can demoralize your team,   leading to poor employee performance. Make sure you have well-planned processes in place for rewarding and promoting accomplishments, actions and behaviors that have an impact on your business success.

Because of the significant connection between worker performance and organizational development, you cannot neglect performance management. This isn’t just a formality put in place by HR, but an essential part of your company’s daily functioning and eventual success!

Author Bio:

Liliana Chitnis is a former HR professional who now works as a content marketing executive at NamanHR, an organization that offers end-to-end HR solutions to help companies build a strong human capital base. She strongly believes in the power of consistent training in the workplace. Liliana writes about various topics related to human resources and shares trends, techniques, and tips with her readers. She loves to read and practice yoga regularly, and occasionally binge on Netflix.


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