HCP Conversations Knowledge Series: Lets Talk About Performance (Part 1)
How did HCPartners develop an effective performance management strategy that supports business goals?
In the second of the Human Capital Partnership Programme (HCP) Conversations Knowledge Series – Let’s Talk About Performance!, we explored how Human Capital Partners (HCPartners) successfully developed an effective performance management strategy that supports the business in achieving its goals. This article is the first instalment in this two-part article series.
Performance Management as a Business Strategy
HCPartners demonstrated a commercially astute HR function capable of obtaining the necessary support and buy-in from business leaders that aligns the HC strategy with business objectives.
This stronger commercial acumen was translated into an effective performance management strategy, where HCPartners
- Viewed performance management as a people-centric practice to maximise the value that employees bring to their team and wider organisation.
- Developed a strong performance-rewards culture where business leaders were often involved in the process
- Aligned team and individual goals between employees and managers with the organisation’s corporate goals.
This cultivates the right environment that enables employees to excel and the organisation to meet business goals by providing clarity to employees on how they connect to the overall business purpose and HR on the necessary support required to meet business goals.
While systems and practices are essential, a key differentiator for an effective performance management practice is the alignment between culture, values and systems. This involves establishing an organisational culture that provides steadfast support to employees in their personal learning and development that views every touchpoint as a growth opportunity.
The outcomes? A strong performance-rewards linkage that drives business goals and motivates employees to perform at a higher level for better rewards; better engagement of talent and a talent pipeline built for sustainable growth.
Review your Performance Management Process
The HC implementation toolkit encapsulates key learning points from the research study, with a 4-step implementation plan to develop a performance management strategy that fully supports your business objectives:
- Step 1: Setting a strategic performance management philosophy
HR plays a strategic role in ensuring that company goals can be met through HC programmes.
- Step 2: Cascading and communicating goals
Create a more engaged and motivated workforce and greater alignment between business units and individual employees by providing a clear line of sight.
- Step 3: Managing performance
A strong pay-for performance culture reinforces desired behaviours while supporting managers as the main link between employee performance and business outcomes.
- Step 4: Evaluating and rewarding performance
Managers’ ability to evaluate and reward performance, as well as optimise touch points for growth and learning is key to success.
The performance management process should not be solely centred on employee past contributions but perform as future-focused stay conversations that support and engage employees in ways to grow, learn and improve. Download the Human Capital Implementation Toolkit here to strengthen your existing performance management process and reap the business benefits!
Look out for the next instalment in this two-part article series.