Best Practices for Performance Management and Employee Feedback

Best Practices for Performance Management and Employee Feedback

Are you a business owner or an HR manager looking for the best way to improve the work culture at your workplace? You must then review your performance management and employee feedback practices.

A 2017 Forbes research reports that annual performance appraisals are ineffective in employee performance management and sometimes decrease employee engagement and motivation. It is necessary to look into other practices that will improve the work culture in your organisation. This article will highlight some best practices for performance management and employee feedback.

What is performance management?

Performance management is a strategic approach by company and HR managers to create and sustain improved employee performance, increasing productivity.

Performance management practices help managers and employees create, sustain, and measure their activities in alignment with the company’s goals and success. It is a system built in an organisation to measure and improve the performances of people in an organisation to reach the company’s goals, milestones, and objectives efficiently.

As an employer or an HR manager, you need to understand what your employees are doing, how they are doing it, and why they are doing it. With a system that defines roles and measures performances, effectively leading employees will be much easier for managers. For this reason, an effective performance management system is vital in every organisation.

10 Best Practices for Performance Management

With the widespread of technology, some performance management such as Trakstar, best for coaching; Reviewsnap, best for goal setting; and PerformYard, best for continuous feedback, exist to help HRs with their performance management practices. Some ready-made templates are also available for performance management practices.

However, effective performance management involves some universal practices, such as:

  1. Keep performance review and performance management separate

Performance review and performance management are different. Performance review is just part of the overall performance management process. To get the best performance from your employees, you must be willing to do more than just seek feedback and focus on a well-planned performance management system.

  1. Identify and focus on the goals of your performance management

If you want a successful performance management program, you must first identify the goals of your performance management program. When determining the goals of your performance management program, your company goals must be considered. You must specify the goals and make sure every employee does too. The goals should be the driver of your performance management program.

  1. Define and assign roles

Although every employee has a job role has the basis of their employment. You need to define and assign roles following your performance management plan. You can make a list of duties that are to be executed by each department in the company, and then you divide the roles among the members of the departments making sure the assigned roles are clear to them.

  1. Establish a performance plan in alignment with your goals

When strategising a performance plan, you must align it with the performance management goals you set earlier. With this, you can achieve your goals with a well-designed performance plan. Let your employees understand what they need to do and how to do it to meet your goals.

  1. Organise frequent coaching sessions

You can organise regular coaching sessions for your employees to help them keep track of the task at hand. Seminars and workshops should be introduced to help educate the employees on executing their tasks for better performance.

  1. Design a strategy for routine performance review

Performance review is essential, though it can be boring to the employees. You have to design a way to make the process attractive to the employees and ensure it serves its purpose. Performance reviews should be a frequent program and not all about evaluation. You can focus more on improvement and development and must ensure your employees get a clear message.

  1. Reward best-performing employee

The performance management system will reveal the best-performing and low-performing employees. You shouldn’t focus on improving the weaker performers; you must also reward the top performers. With this, you will set a standard to push the employees to do their best for maximum performance.

  1. Prioritise communication with the employees

Communication is the key. You have to build a good relationship with your employees with good communication. When your employees are free with you, they can share any information you need to know without holding back, which will help you make corrections for better performance.

  1. Ensure fair performance evaluation

When conducting performance evaluations, you need to be as neutral as possible. There should not be any form of favouritism or bias. This will help you get the best out of your performance management system.

  1. Craft a performance-aligned work culture

One thing you should also put into consideration is your work culture. What is it like working in your office? What are the basic operations like in your office? You must ask yourself these questions and align them with your performance plan. You must ensure that your work practice and processes will work with the performance plan you designed.

Tips for receiving employee feedback successfully

Employee feedback is essential in performance management. Every manager must watch out for feedback from their employees. Below are some tips to follow for receiving employee feedback successfully.

  • Ask for feedback on an ongoing basis.
  • Refrain from rejecting feedback. Assume best intentions.
  • Listen for understanding. Clarify what the feedback means.
  • Respond to feedback. Share your views. Jointly agree on ways to improve.
  • Thank the person for giving the feedback.


In every organisation, employee performance is paramount. When a company implements the best employee performance management practices, the company will yield high-performance results. At Earnipay, we offer financial services that will work with your company’s performance management system to bring the best performance out of your employees. You can head to for more details.

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