How can you create a performance management system that retains top talent?

Set clear, SMART goals. Communicate expectations and KPIs clearly. Track and monitor progress. Have regular check-ins, identify lacunas, and seek interventions to close them. Give timely and constructive feedback.

The art is to create objectives which are inspiring, so they serve as direction ( like “spend company money as it would be yours”, and then SMART. Top performers like to achieve, and be measured, and REWARDED. C class players shy away from clear personal accountability, hence you will not be popular with a SMART goals.

I'm going to heartily agree with almost everything said here. Vivek however expresses I think the sentiment is the best. We must remember that the article is about top talent, not all talent. For me, top talent makes immediate connections to the org. vision, missing, and values. They are often the trendsetters and formal or informal leaders. I find using HARD Goals (Heartfelt, Animated, Required, Difficult) - Mark Murphy, more effective for the organization. Some distractors may say it is difficult to set clear expectations using the HARD acronym and I won't argue that point, rather I would say that the measurements may require unique or more subjective analytics.

Performance management is not merely a term but a strategic approach to align individuals with suitable roles by assessing their strengths, work characteristics, and cultural attributes. Effective performance management requires insightful questioning of managers or reviewers to extract the best from individuals. This reflective process involves evaluating employees' accomplishments, contributions, and impact against set expectations. Employers, in turn, must assess if they have maximized employees' strengths, recognized their potential, and provided opportunities for excellence. It is more than a routine; it's a continuous journey integral to a company's and employees' life cycle and overall experience.

Feedback is always like the BROCCOLI which everyone knows is good for health, but always ignored/avoided. Feedback given on time at regular intervals acts as a catalyst for increased employee's performance & morale. Constructive feedback is the most toughest, but it is the most sought out by employees as it focuses on the areas of improvement also highlighting the talent's strengths. Apart from sticking on to traditional performance process, employers are moving to "Instant feedback" process, where talent gets feedback at regular intervals that is very specific with key focus areas. Constructive feedback always fosters open communication, trust, collaboration by assisting in professional & personal development/growth.

The biggest takeaway to avoid losing top talent is to always give feedback in the moment if possible at all times. Positive reinforcement or addressing areas of opportunity will allow the employee to correct their behavior or continue to be productive. Either way, it makes them aware of your expectations. You don’t have to wait for an annual review if you think your employee deserves a raise. Give them when it makes sense financially and as long as they are exceeding their goals.

Often, giving timely constructive feedback is one of the most important actions thought of by a manager, peer, friend, subordinate. But converting the thought to an action requires reflection of behaviours demonstrated by the receiver, and equally the choice of words, timing and setting by the giver. Easier said than done until it’s authentic, factual and natural. With practice it becomes one of the most sought after, non threatening way of learning to experience true growth for the receiver. The givers gain over time as they see the results bearing fruits as they create successful resilient leaders of tomorrow. Thanks to all my leaders, mentors , team, friends and family who are being part of my feedback journey.

Performance feedback should not be a half yearly or annual ritual In fact, all conversations between an employee and his IS should have a significant focus on performance as well, which can help the employee to easily assimilate the trajectory of his performance journey and make course corrections through training, collaborations, etc. as may be required

Always make sure the feedback provided is documented irrespective of the different methods. The feedback should be clear, and precise and be available to both the manager and the employee.

On time recognition & rewarding talent will reinforce positive behaviors & motivates talent to outperform in their roles. Employees feel a lot valued & appreciated when their efforts are recognized leading to higher employee engagement score in organizations. Recognition & Rewarding high performers creates a culture of excellence.

Properly stringing the Performance-Reward relationship is always a big win in the Talent Management game. The reward here doesn't have to be necessarily monetary, opportunity for learning and growth is a big driver in this space too. Organizations looking to drive a high performance culture cannot do so independently of a properly crafted reward system.

It's important to understand your team member's preferences for reward and recognition. Not everyone is motivated by extrinsic rewards, so be sure to connect and individualize rewards and recognition accordingly. Generally speaking, high performers what to have challenging and rewarding work and assignments, work with other high performers and have some level of autonomy.

This is a great and important step to retain, recognize and train talent for career growth in the organization There can be multiple ways to provide rewards and recognitions ; all rewards need not be monetized

Differentiate performance do not be afraid to have the difficult conversations with those that are not meeting expectations and truly reward those that are excelling. This will drive engagement and retention from those employees you want to keep in your organization who are contributing to the company success. If all are treated the same your top performers will leave to go where they will be valued. You will promote a culture of mediocrity and who wants to work in an environment like that.

Remember that high performers often care deeply about the work they do and feel proud of their contributions to business and team objectives. If an error has been made or a development/improvement area has been identified, ensure the feedback is structured in a way that does not dent their confidence or cause them to feel disapointed. Frame all development areas and constructive feedback as a way for the employee to continue building upon their skills and going from strength to strength in future years.

As you think about the development opportunities, make sure you pay close attention to the purpose and goals of that development. It can't just be development activity for the sake of development activity. Getting this wrong can backfire and repel top talent. For example, if you offer robust development opportunities but fail to connect those development opportunities to authentic career development, it will feel like an exercise in futility to your top talent. In the end, they will leverage that development and all the resources that went into it as a means to propel themselves into better opportunities in another organization.

Top talent have a lot to offer to the organization. In addition to the traditional ways of developing talent, you can build their capabilities by asking them to be a mentor for others, cross-train others, lead a project team, etc. You increase the bench strength of the organization and they add to their leadership capabilities and skills.

L&D is absolutely crucial. This approach not only bolsters employee performance but also prepares them for upcoming challenges and aids in their professional growth. How to Do It: Conduct a 'Skills and Aspirations Audit' to map out each employee’s current skill set against their career aspirations and the organization's future needs. Develop a 'Personalized Learning Plan' , incorporating a blend of training courses, workshops, webinars, and other educational resources that align with the individual's career trajectory and organizational objectives. Promote mentorship and coaching programs that pair employees with seasoned professionals within the organization, fostering knowledge transfer and providing invaluable guidance.

For any development initiative think about where the person could apply the learned skills since day 1, think about follow ups to refresh key learnings.

Encourage entrepreneurial thoughts & ideas. If an employees fears to raise up and provide solutions, then it is a highly toxic environment and employees tend to quit. Have brainstorming sessions to show encouragement and involvement among employees. Show that the organization values these ideas and recognize those ideas as well. Create a positive environment reflecting the culture.

3 pronged approach - Implement a 'Participative Decision-Making Model' where employees are actively involved in making decisions that affect their work and the organization. This can be done through regular team meetings, suggestion boxes, or collaborative platforms. Establish 'Employee-Led Innovation Programs' where employees are encouraged to propose new ideas or improvements. Provide the necessary support and resources to pilot promising initiatives. Delegate meaningful tasks, giving employees the autonomy to plan and execute them. This builds trust and demonstrates confidence in their abilities. organization.

Empowerment goes a long way. It is easy to build future managers and leaders ( talent pipeline and succession planning) from empowered employees. Managers should also delegated authority down, and not up when they are not around. I have seen a lot of managers putting their peers in charge when they go on leave, instead of seconding one of their team members.

When you give employees the feeling of being participative and included, they go on a totally different tangent where they respect you as they are valued for every decision, thought, or comment shared, and this aids business growth. This will strengthen the bond between them and the org. Their connections with the managers would be very sincere, more detailed, and more value-added than just updates on regular daily work. There will be lots of ideas that will spark from their end, which managers will love, and the ability to solve problems will be more collaborative than a one-sided approach.

Employee involvement and empowerment not only creates a sense of ownership and empowerment, but a lot of times they have more information and data about a particular challenge and are best equipped to solution for the challenge. Allowing them to solution and implement ways to overcome their challenges is a powerful form of engagement and empowerment.

Monitor and evaluate but don't hover and micro-manage. You have someone excellent talent on your team. Well-done because you helped them get there. Now trust them. It's all about the approach.

Any HR system and most critically a PMS should be often to review and refinement from time to time. No system should be cast in stone. HR should have the foresight to accept and assess feedback to refine the PMS based on internal stakeholder expectations.

Above all the suggestions, when employers measure the performances of employees' performance areas, reviews and feedback from other colleagues, awards, and recognitions, and monitoring it, in general, employers have to standardize at pay level what actually employees deserve Also they need to ensure employees are being valued, accepted and inspired to retain talent.

Before diving into the intricate details of crafting, monitoring and evaluating a performance management system, it's imperative to deeply consider its true purpose. Performance management isn't merely an annual review or legality tactic. Instead, it's a strategic commitment to the long-term health and growth of your organization. In the heart of a robust performance management system lies the vision for genuine employee engagement, clear succession roadmaps, and shift toward a competency framework that values holistic development over mere performance metrics. It's about crafting a work environment where employees feel valued, guided and motivated to give their best, ensuring the organization thrives today and is poised tomorrow's success.

La surveillance continue et l'évaluation régulière du système de gestion du rendement sont cruciales pour garantir son efficacité, en analysant les performances des employés, en recueillant des commentaires et en maintenant l'alignement avec les objectifs stratégiques de l'organisation. L'adaptation constante des critères et des outils en fonction des besoins évolutifs renforce l'amélioration continue du système.

The most important element that contributes to the success of any Performance Management System is the organizational culture that embraces such system. Regardless of its methodology or alignment to the so called "best practices", PMS will definitely fail if loses its creditability and employees' trust. People should see in reality the system works to objectively evaluate employees, reward high performers, pay attention to the improvement of lower performers, and be one of the main trusted sources for people's development and career growth.

Retain top talent by creating a performance system emphasizing clear communication, aligned goals and ongoing feedback. Set transparent expectations, hold regular progress check-ins and offer growth opportunities. Acknowledge excellence with merit-based rewards and foster a positive work culture. Utilize a 9-box module for talent assessment, establish clear career paths and build a strong talent pipeline. Enable role changes based on skills and aspirations. Continuously assess and adjust the system, integrating feedback for ongoing effectiveness. Additionally, incorporate a development centre to enhance skill-building and career advancement.

It’s not the performance management system that will retain people it’s their line manager. Invest here most. Having guiding goals and regular conversations about performance built in to every day helps connect, reinforce and support individuals.

The system that works and retains top talent must focus on the following: 1. Strategy 2. Proper alignment where departmental and individual objectives are in tandem 3. Reward, the what is it in for the employees (WIFM) must be clear and always on the horizon. 4.Leverage on technology to avoid bias and manipulation