Goals – making them and meeting them – are essential to the success of any business. Without solid goals, your business might be able to reach its full potential. According to recent data, approximately 20% of small businesses fail within the first year, 30% by the end of the second year and 50% by the end of the fifth year. Having a strong employee base that understands your strategic initiatives and how their work impacts your ultimate goals can help in getting your business past the one-, two- and five-year humps. Performance management is one important way to make sure you and your employees are on the same page.
What is Performance Management?
Most people think of performance management as being an annual review. But real performance management is an ongoing, open conversation with your employees. The goal of performance management is to make sure your employees are performing at their best, and to stay on top of any issues that might arise on the job site or in the office.
Performance management is a process that involves several steps or stages and the backing of your entire company. The reward of implementing such a process is having employees who are highly productive and able to help you reach your goals.
Why Have Ongoing Performance Management?
Ongoing performance management produces several benefits.
- Improve Worker Productivity: Ongoing performance management helps encourage year-round behaviors that can have a big impact on your bottom line. Regular, actionable feedback motivates employees to do their very best.
- Lower Employee Turnover: Tracking employee performance is critical to long-term employee management, which helps reduce turnover. To gauge performance alongside engagement, a strong performance management strategy needs to note strengths, weaknesses and growth, as well as elements defined by Gallup to indicate high engagement.
- Align Goals with Strategy: When employees are working toward shared company goals the result is shared success. Ongoing performance management takes the guesswork out of what is expected of your employees. Instead of leaving employees in the dark, performance management helps define, discuss, deliver, manage and measure accomplishments.
- Support a Diverse Team: Performance management helps to ensure equitable treatment of all employees through consistent, standardized procedures. Managers can set, track and approve a variety of employee goals—from quantitative goals like quotas to qualitative ones like assertiveness—and see who’s exceeding expectations regardless of race, gender or religion.
How Arcoro’s Performance Management Works
Performance management measures employee performance to accelerate growth. Arcoro® Performance Management is a cloud-based solution that empowers team members to direct their own career development toward mutually agreed upon goals and competencies, while enabling managers to better understand the strengths and weaknesses of the overall team and keep them focused on achieving their goals. By benchmarking, tracking and evaluating employee performance over time, HR teams gain all the insight needed to make informed personnel decisions.
Visibility into company goals and competency progress helps ensure your organization stays on track and achieves positive results. Arcoro Performance Management centralizes goals, competencies and 360 degree feedback to create a career roadmap for employee and organizational success.
Arcoro’s Performance Management allows admins to create customized competencies so you have control over what metrics you’re basing performance on. You can even associate questions to competencies. The system also allows users to develop performance levels that can be used in succession planning when you want to guide an employee towards a long-term position with the company.
360 Degree Feedback
Using 360-degree feedback allows peers, clients, supervisors and even upper management to provide feedback about an employee’s performance. Arcoro’s software gives you the ability to solicit reviews from those outside your organization and configure report to include an individual and company-wide rating. The software provides an employee’s top and bottom 10 behaviors.
Arcoro’s performance management system gives your employees the ability to create personal goals. Goal progress can be tracked and updated with the ability to add comments and/or supporting documents. Goals can also be included in the review forms with the ability to add in new goals within a form or via goal management.
Individual Review Forms
Arcoro’s performance management system allows users to create and manage unlimited forms. You can configure your questions from several types and layouts. The autosave feature helps employees finish quickly and efficiently. Supervisors can use weighted sections to determine overall evaluation scores and supports ongoing reviews or recurring reviews. Automation makes it easy to schedule review form completion and send reminders.
The Arcoro performance management module allows you to create and manage all types of on-demand review like project based, skills assessment, discipline action form, employee recognition form and so on. You can review employee performance on a project-to-project basis and provide managers with feedback from a project lead’s perspective by an individual, group or both.
Find out more about how Arcoro’s Performance Management module can help your company reach its strategic goals by scheduling a demo.