The Key Objectives of Performance Management

Many business leaders recognize performance management as a prime way to motivate learning and development within an organization, in addition to creating a culture of goal achievement and self-improvement.  Adopting performance management goals within your organization could prove to be very empowering, leading to better results from staff and, in turn, better experiences for customers.

To truly understand the objectives of performance management, it’s first important to have a clear understanding of what performance management actually is.

What is Performance Management?

In essence, it is the ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization.  Naturally, while that definition sums up the spirit of performance management, there are a lot of moving parts involved, and a more detailed breakdown of the elements to maintaining a steady workforce and contact center management software would include:

• Planning work and setting expectations
• Continually monitoring performance
• Developing the capacity to perform
• Periodically rating performance in a summary fashion
• Rewarding good performance
• Correcting poor performance

The concept of performance management rests on the simple principle that “what gets measured gets done.”  In an ideal system, a business creates a cascade of metrics and targets, from its top-level strategic objectives down to the daily activities of its frontline employees.  Managers continually monitor those metrics and regularly engage with their teams to discuss progress in meeting the targets.  Good performance is rewarded; underperformance triggers action to address the problem.

To understand the goals that drive that principle, let’s take a look at the key objectives of performance management:

1 – Setting and Defining Goals to Fulfill Organizational Objectives

Employ­ees shouldn’t sim­ply under­stand their own goals; they need con­text on how those goals align with the over­all strat­e­gy of the organization.  Not only will this help with their dai­ly deci­sion-mak­ing, but an under­stand­ing of com­pa­ny objec­tives and how their roles feed into the direc­tion of the com­pa­ny will give employ­ees a sense of mean­ing and pur­pose.  It’s crucial to set goals that benefit both employee performance and organizational performance.

2 – Developing a Performance Culture

Instilling an atmosphere where employees are focused on objectives, improvement, and development is one of the main objectives of performance management.  When performance is properly measured and feedback is timely and adequate, positive characteristics and behaviors are reinforced, and communication is constantly focused on development, the strengths and weaknesses of the organization will become more evident and, as a result, easier to improve or rectify.

3 – Encouraging Employee Empowerment

In the modern business landscape, providing employees with the appropriate tools to empower them to make decisions on behalf of the company is crucial.  A highly-trained employee with the power of decision will not only ensure higher customer satisfaction, but will also reinforce a certain level of autonomy, which can result in a more positive customer experience.  It’s all about encouraging employee buy-in, not only into the value-driven service their organization is providing, but also buy-in to the brand that they are representing.

4 – Promoting Improved Communication Between Teams

Performance management relies on good communication and can be used to promote good two-way channels between leaders and employees.  By promoting and fostering open communication, organizations are rewarded with employees who are focused and engaged.  It can also be used to improve accountability in your organization, as staff will feel more comfortable about being open and honest.

5 – Identifying Areas for Development

Another one of the key objectives of per­for­mance man­age­ment is evaluating where development opportunities exist.  It is vital to cre­ate develop­ment plans with employ­ees.  Focus­ing on devel­op­ment means man­agers and employ­ees can put effec­tive plans in place, lead­ing to indi­vid­ual per­for­mance improve­ment and, ultimate­ly, improved organizational perfor­mance.  Fur­ther­more, when it becomes evident the organization is invest­ed in their person­al devel­op­ment and career aspi­ra­tions, employ­ees will feel like val­ued and respect­ed mem­bers of the team instead of a replace­able cog in the machine. 

6 – Setting Appropriate Expectations for Both Managers and Employees

A truly efficient performance management system places clear and reasonable expectation upon managers and employees alike.  As such, managers should assign manageable goals to their direct reports.  For instance, it’s unreasonable to expect a poor performer to begin providing improved results right away.  Conversely, a star performer can’t be expected to maintain elevated levels week after week.  Additionally, setting unreasonably lofty expectations for managers will only result in poor management decisions.

7 – Establishing Positive Incentives for Good Work

You want to encourage your employees to do their best work, all the time.  One of the best ways to do this is through positive incentives.  Quotas, contests, and rewards can provide positive incentives in a number of different ways.

First, they can keep employees motivated when the calls get difficult.  Second, they can help maintain a higher level of morale throughout your entire team.  And third, they can make employees feel appreciated.

When your employees feel appreciated, they’re more than likely to go the extra mile to provide high-quality customer service when the need arises.  That benefits them, you, and the entire organization.

Using NICE Performance Management to Improve and Engage Your Employees

Help foster a performance-driven culture through engagement and insight with NICE Performance Management (NPM).  NPM propels the long-term success of your organization by comprehensively improving workforce optimization and customer satisfaction.  Highly personalized tools empower frontline agents, back-office staff, supervisors, and managers to efficiently meet performance goals.  The result?  NPM ensures that your organization consistently achieves better staff performance, higher CSAT scores, and greater employee retention.

NPM can transform performance by:

• Providing accessible and easy-to-use metrics and analytics
• Closing performance gaps with personalized coaching and actionable goals
• Ensuring accuracy and increasing visibility through out-of-the-box WFO integration
• Enabling behavioral change with robust, adaptive insights and actions

And the results are self-evident: NICE clients using NPM report a 50 percent increase in employee engagement and satisfaction.