Performance Development: Unlock Your Team’s Potential


SHRM defines performance management as “the process of maintaining or improving employee job performance through the use of performance assessment tools, coaching, and counseling as well as providing continuous feedback.”

But far too many organizations stop at the first part — performance assessment — and miss the opportunity to actually improve employee performance. Only about one in four employees strongly agree that their manager provides meaningful feedback to them or that the feedback they receive helps them do better work. And only 21% of employees strongly agree that their performance is managed in a way that motivates them to do outstanding work.

Best-in-class organizations are integrating continuous feedback and development to enable more effective performance management. This approach is often referred to as performance development — think of it as the place where performance management meets career development — and it can be a great way to unlock your team members’ full potential.

The benefits of performance development

Performance development goes beyond traditional employee reviews to focus on fostering continuous growth, skills enhancement, and career progression.

Investing in a more robust approach to performance management has many benefits, including: 

  • Building emerging skill sets. Skills sets for jobs have changed by around 25% since 2015 — and this number is expected to grow to 65% by 2030. Effective performance management can help your team members identify and learn the in-demand and emerging skills they need to be successful in their current roles — and in their future ones. 
  • Increasing employee engagement. Performance development demonstrates the direct connection between feedback and career growth, motivating employees to go above and beyond at work. In fact, Gallup found that development is a top driver of employee engagement.
  • Reducing turnover. Continuous feedback and development shows your organization’s commitment to an employee’s long-term success, making your team members more likely to stay. The Josh Bersin Company found that organizations that offer ongoing skill development to their employees are 7.2x more likely to retain and engage their employees than those that don’t.
  • Improving business outcomes. Upskilling, engaging, and retaining talented team members through effective performance development practices can make a tremendous impact on your organization’s success. Companies that facilitate career development are 4x more likely to innovate effectively and 2.6x more likely to exceed financial targets.

Building a performance management program that encourages career development

Effective performance management is more than an annual event — it’s an ongoing process of goal setting, employee development, performance evaluation, and rewards. Each should be discussed regularly to nurture an engaged, motivated, and highly skilled workforce.

Align on goals and performance expectations

Just 50% of employees clearly understand what’s expected of them at work and only 21% strongly agree they have performance metrics that are within their control. Ambiguity and uncertainty around job expectations can hinder performance and negatively impact engagement.

Discussing goals and expectations with each of your team members is a critical step toward effective performance management. Employees should understand how their success is being measured and feel empowered to accomplish their goals.

Begin discussions on goal setting during your employee onboarding process by reviewing the job description, organizational goals, and your team member’s expected impact. Work together to build achievable short- and long-term goals, revisiting them during check-ins and performance reviews to gauge progress and make adjustments. 

Employees whose managers involve them in goal setting are 3.6x more likely than other employees to be engaged, making this a worthwhile step in your performance management process.

Build and maintain employee development plans

Every employee has opportunities to learn and develop — and most want to. More than four out of five employees (83%) say that improving their skills is one of their top priorities

Hold regular conversations with your team members to learn about each person’s professional growth goals, career aspirations, and skills they’d like to master. Then find the intersection of your team member’s development goals and your business needs to create a personalized performance development plan for each employee. 

Performance development should go beyond addressing areas for improvement to also include honing strengths, learning emerging skills, and reskilling. Employees’ top motivation to learn is progress toward career goals, so it’s crucial to get your team members’ feedback and buy-in around their development plan to ensure alignment.

Update development plans as your team members acquire new skills and identify additional opportunities for professional growth. The most effective development plans are flexible to accommodate evolving needs and interests.

Provide continuous feedback

Only 21% of U.S. employees strongly agree they have received meaningful feedback in the last week, with nearly half saying they receive feedback a few times a year or less. In other words, most employees don’t get enough performance feedback to understand what they’re doing well or when they need a course correction.

Effective performance development requires that feedback be given consistently so employees have the guidance they need to be successful in their roles. Things you can do to make sure this happens include:

  • Initiate casual conversations. Let employees know when you see commendable efforts or teachable moments in their day-to-day work. Frequent feedback lets your team members know how you feel about their current performance and guides their development. Record the feedback in your performance management system so it can be referenced during future performance discussions.
  • Plan regular check-ins. Schedule regular one-on-one meetings to discuss progress toward goals, challenges, and development needs. These informal check-ins are a great opportunity to go in-depth on performance development discussions so you can make necessary adjustments to employee goals and development plans. 
  • Conduct regular performance evaluations. Plan comprehensive performance reviews at regular intervals to assess your employee’s overall performance and goal attainment. If you do performance development well, employees shouldn’t be hearing any feedback for the first time during the review process.

Reward your team members for professional development

Rewarding your team members for professional development acknowledges their effort and demonstrates the value your organization places on learning and growth. It can also help you retain employees: Compensation and career progression are among the top reasons for turnover.

Offer raises and promotions as appropriate to reward your team members for developing their skill sets and gaining new experiences. This is particularly important if your employee’s new competencies or responsibilities qualify them for a higher pay grade or job level according to your compensation strategy.

Final thoughts: Effective performance management is an ongoing process

Gone are the days where an annual review is considered sufficient to manage employee performance. Modern teams encourage ongoing performance development to help employees achieve professional growth and meet evolving organizational goals. This approach can help you unlock your team’s full potential and drive your company’s success.



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