A guide to effective performance management and development for every team member

When you hear the words “Performance Management” are you thinking how can I drive results? How can I develop the talent in my team? How can I help my team members progress their careers?

Or like many other managers do you automatically think of Performance Management mainly as a process for addressing poor performance, missed targets, capability reviews or the first step towards managing someone out of an organisation?

Few organisations are genuinely using Performance Management as a tool for developing talent and guiding team members towards their career goals.  And this is largely why most managers struggle and a large number of businesses are struggling to develop or retain their top talent.

Whilst there are two words in performance management the tendency is towards focussing on the management and not the performance.  Managers struggle to balance these two aspects, focusing on those who are underperforming. A recent study by Deloitte revealed that 79% of senior leaders think performance management is a top priority but only 10% feel that their process is effective in driving high performance and development across the board. 

The key questions we address in this blog are; Why do managers find performance management tough? What happens if we shift the focus of performance management from a negative into a positive? And finally, how can organisations help their leaders to confidently manage rising stars and those who need extra support to achieve?

Why Do Managers Struggle with Performance Management for All Team Members?

Too much focus on poor performance

What we have been seeing through our conversations and our research is that there is too much focus on poor performance. Performance management processes are primarily about correcting poor performance, rather than a tool for developing the entire team. Gallup research found that only 14% of employees strongly agree that their performance reviews inspire them to improve.  If the process is geared towards examining failure neither side is likely to find the experience engaging, insightful or inspiring.  Employees aren’t motivated to bring their achievements or ideas to the table if the focus is on defending their position or explaining mitigating circumstances.

No time for development conversations

We found that managers avoid conversations around future development or rush through performance reviews stating lack of time as a factor. This can be worse for high performers who may be seen as needing less attention, even though they require development to maintain their motivation and growth. If they become dis-engaged they may start to look around for opportunities to develop outside of the organisation.

One size doesn’t fit all

The McKinsey study highlights that personalised feedback and development plans help employee engagement and retention, yet only 35% of organisations say they attempt to do this.  Managers struggle to adapt their feedback leaving team members with evaluations that don’t fairly reflect their efforts, achievements or potential.

Unclear paths for career development

One of the biggest changes Deloitte introduced when they overhauled their performance management process was shifting the question from 'What do you think of this person’ to ‘What would you do with this person?’ Performance management outcomes became future paced rather than focussing on the past and included that vital career development piece that often gets overlooked.  In many organisations, even when a manager wants to support and develop their potential talent, they get stuck on how to have career development conversations. Data from LinkedIn’s 2023 Workplace Learning Report showed that 94% of employees would stay longer at a company if it invested in their learning and development. If employee retention and talent development is high on your agenda, developing career pathways within your organisation are critical.

Tips for effective performance management and development for everyone

Shift the mindset - performance management is for everyone, not just your low performers. 

Build a culture and practice that recognises high performers need as much guidance as those who are struggling. Everyone benefits from regular feedback and development conversations.

Individual development plans for the whole team

Personalised development plans are essential for all employees, not just those who are struggling. Plans that focus on long-term career aspirations, areas for skill-building, and short-term goals help managers provide consistent feedback and support to high-potential employees, not just those who need improvements.

Regular check-ins with potential talent

Your high performers need regular feedback and career conversations to stay engaged. Research from the Society for Human Resource Management (SHRM) shows that employees who receive consistent feedback are 23% more likely to be satisfied with their jobs. These conversations should include discussions about career goals, potential projects and development opportunities such as mentoring or specialised training.

Recognition of achievements

Using recognition as a driver of employee motivation and retention. Recognising and celebrating the successes of your team help individuals and teams to feel valued and stay engaged.  Encourage managers to acknowledge achievements of their team in a meaningful way, whether this is through verbal recognition, promotions, or offering new opportunities. 

Managers who can coach

Managers who can coach and develop their team by spotting talent and encouraging them to take on leadership roles. Managers can work with team members who need guidance on how to make the leap from individual contributor to leader. Train your managers to coach their team, providing stretch assignments and coaching for leadership skills to boost future leadership pipelines.

Develop routes for progression and growth

If there is no visible career progression high performers leave. Data from LinkedIn’s 2023 Workplace Learning Report - 74% of employees feel they aren’t reaching their full potential at work due to a lack of development opportunities. Avoid this by providing clear pathways for growth whether this is through promotions, lateral moves, or new responsibilities.

Offer coaching and mentoring 

Coaching and mentoring are powerful tools for developing your team. A study by the American Management Association found that 75% of employees who received mentoring reported increased career satisfaction. This also provides future talent with additional support other than their manager helping them gain new perspectives. 

Balancing development for those who are struggling and talent

Remember those personalised development plans we talked about earlier? This is where they come into play. Employees who are struggling may need more structured feedback and immediate guidance, while high performers require forward-looking development conversations and opportunities for growth. To achieve this balance organisations must provide managers with training on adaptive leadership styles.  Teach managers how to adjust their leadership style based on individual team member needs, helping them support both under performers and high-potential employees.

Tools for effective goal setting

Give managers the tools so they can set clear and personalised goals for both performance improvement and long-term career growth. The emphasis here is on clear; what does success look like and does everyone understand and agree on how these targets will be measured?

Coaching techniques

Develop a coaching culture.  Having managers who can coach is linked to higher performance and retention.  Teach your managers how to guide through reflection and growth. With these skills they will be in a better position and more confident to help both struggling employees and high performers to reach their full potential.

To sum up, performance management isn’t just about managing underperforming team members.  It’s an essential tool for developing talent across all levels of your organisation providing managers with the right skills and mindset to create a workplace where every employee feels supported and enabled to take charge of their development and growth.  When performance management processes are designed and implemented in ways that seek to develop and enhance performance everyone wins.

If you’re excited about providing meaningful leadership development and coaching opportunities, get in touch for a consultation call. Together, we can build a stronger foundation for your future leaders and ensure they’re equipped to drive your organisation’s success.