Performance Management for Employees: 3 Ways to Make It Better


Performance management is a process that helps companies meet their goals—and every employee’s performance of their own goals plays a crucial role in that. That’s why forward-thinking enterprises are revamping their performance management processes to tie performance management to the management and achievement of specific goals. In this blog, we look at three ways to improve performance management for employees.

What Is Performance Management?

Investopedia defines performance management as “a corporate management tool that helps managers monitor and evaluate employees’ work.” The goal is to create a working environment where employees can do their best work so the organization can meet its goals.

The Need for Better Performance Management for Employees

Traditionally, enterprises relied on ad hoc check-ins and annual reviews to determine employee performance. But the last year has shown that this way of performance management is no longer ideal.

Employees are leaving their jobs at record rates. In August 2021, nearly 4.3 million workers voluntarily quit their jobs. That’s enough people to fill 61 professional football stadiums. And if 2021 has been any indication, those numbers will continue into 2022.

Why is this happening? It’s complex. But one major factor is that employees are no longer satisfied with the status quo. They want to be heard. They want to be recognized for their contribution toward the company’s goals. They want to get value out of their work and they want frequent feedback and recognition. 

Forward-thinking organizations are listening, and they are improving their processes of performance management for employees in three major ways.

Performance Management for Employees: 3 Ways to Make It Better

1. Make Communication Better

An enterprise’s business goals can change at a rapid pace, making it challenging for employees to keep up if communication is infrequent or only done during year-end reviews. By the time employees learn of the new business objectives, it’s often outdated information. And managers may give employee feedback too late to make a real difference. This leaves employees frustrated because they don’t know what’s expected of them and are always behind the times.

Modern performance management processes help resolve these issues by fostering better communication. Feedback sessions happen consistently so that employees always know what’s expected of them. If anything changes, employees will find out in time to adapt and make the necessary changes so that they can be successful. Employees also get the opportunity to let their voices be heard, which gives them a sense of ownership in their work.

2. Foster Professional Growth

When an enterprise transforms its performance management process to better suit employees, they create a culture of learning and growth that makes workers want to stay.

94 percent of employees would stay at their current jobs if their employer would help them learn. It’s clear that employees aren’t content with jobs that offer no advancement. Instead, they seek career paths that lead to more responsibility and promotions. 

But professional development can’t happen when an enterprise uses an outdated process of performance management for employees. Without clear goals and timely feedback, how can employees know how they are doing and what skills to improve?

Consistent check-ins can help employees feel less anxious and stressed knowing exactly where they stand throughout the year instead of finding out if they are performing well during an annual review. They also allow managers to discuss possible development opportunities with employees who show potential.

3. Greater Engagement Between Managers and Employees

Enterprises can boost retention when employees feel more engaged. To make that happen, they need a well-structured performance management process that gives employees insight into what’s expected of them and how they are performing at all times. One way to do this is by setting up frequent reviews.

Giving reviews more often is an impactful way to help employees understand where they need to improve and where they are excelling. Plus, this process helps to highlight employees who are performing well, making it easier for managers to reward, compensate and promote deserving workers.

Another useful tool is an online portal that employees can access for instant feedback and updates. This is especially helpful for employees who work remotely and may not see their managers face-to-face every day.

Greater engagement also makes employees more empowered. Since they are getting more feedback and reviews, employees know what work needs to be done. As a result, there’s less need for micromanagement, and an employee feels like they are in control of their own success.


The world of performance management for employees is changing. Enterprises find that they can achieve their goals and improve retention when their employees have better communication, deeper professional growth and greater engagement.

Performance management and goals management software makes it easier for enterprises and employees to align goals. A user-friendly platform provides deeper visibility into an employee’s performance, which helps create timely feedback and justified reviews. It also encourages collaboration, which makes employees feel like they are a vital part of the organization.

HRSoft’s performance enablement solution, PERFORMview, drives better business results for enterprises. See how it works by requesting a demo today.