Momentum is gathering as organizations realize that even the slightest emphasis on effective performance management garners a large return. The theme of entrepreneur Brent Tilson’s article in Forbes is that performance management “is the ultimate key to building a high-performance company” when done effectively. This message alone is one that has undeniably gained momentum and Tilson explains how and where to begin. The “five simple steps” are find, develop, direct, motivate and retain. Tilson further explains, the real challenge is finding a performance management system that can keep up as “business picks up steam.” Performance Scoring is the versatile performance management system that ties these steps together for a high-performance company.
Finding & Developing Talent
The first step is finding the best talent, and Tilson immediately recognizes that “competition for talent is undeniable” today. Couple this with the fact that “high performers produce four times greater results” and importance begins to mount. Performance Scoring is a tool that differentiates a company from others and will attract the best talent. The millennial workforce values employee engagement and development above all else, leading to the next step: developing top talent. Hiring top talent is detrimental without “developing employees to reach their full potential” and maximizing value. With Performance Scoring’s Factor System, employee development is measured objectively to ensure productivity and performance are continuously being developed.
Directing & Motivating Talent
Directing performance, the third step, is where the gaps in performance management begin to appear. Tilson writes that “a highly effective workforce requires consistent direction and alignment” from its leaders. Direction from management is an area where the summation of under performance is generally miscommunication. As Tillerson points out, only when every employee knows objectively what they are responsible for “can management effectively direct performance.” As foreshadowed by the development step, Performance Scoring’s Factor System is truly putting performance direction into action. The fourth step of Tilson’s article, motivating excellence, runs parallel to directing performance. This is the most intangible step, and as such it’s often overlooked and taken for granted. Tilson explains that motivation and morale “are mutually reinforcing aspects of a highly effective organization” rather than being interchangeable. With integration of employee engagement and development in a company, a motivated workforce also becomes apart of the company culture.
With the execution of the first four steps, the lion’s share of the final step (retention of top talent) is also in execution. Tilson estimates, turnover costs “as high as 150 percent of annual salary” to put a number to attrition. Without effective performance management, companies are “depriving themselves and their employees of the opportunity for optimal success” and unlocked potential. To inhibit an individual from unlocking their potential are a summation of factors that drive top talent away. With the focus on employee engagement and development, Performance Scoring ensures retention of top talent, all while increasing productivity, performance and revenue.