7 Essential Strategies for Managing Employee Performance

One of the greatest challenges newly promoted managers face is not knowing how to appropriately manage underperforming employees. Stepping into a managerial role can be both exciting and daunting, especially when it comes to performance management. As a new manager, you’re not just responsible for your tasks but also for guiding your team toward success. Effective performance management is key to achieving this goal.

Here are 7 essential strategies to help you navigate this crucial aspect of your role:

1. Set Clear Expectations

The first step in effective performance management is establishing clear expectations upfront. Don’t wait until an employee is failing to meet performance standards to communicate your expectations. Make sure each team member understands their role, responsibilities and the goals they need to achieve.

Giving your employees a goal like “increase sales” or “be more efficient” may seem self-explanatory but can actually lead to more confusion and frustration down the line, as the employee may feel that they are improving, while you may feel they’re staying stagnant. Instead, give them quantifiable benchmarks to achieve. For example, rather than the directive “increase sales,” say “Close $____ worth of sales by June 30.” 

Not only does this make it much easier for the employee to see how they’re measuring up to their expectations, but it also requires your employees to be more mindful about their performance expectations. That way, even when they do fall short, they will often be able to explain the barriers preventing them from reaching these goals. 

Tip: Utilize SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) to set clear objectives that align with your organization’s vision.

2. Foster Open Communication

Open lines of communication are vital in performance management. Regular one-on-one check-ins can create a safe space for dialogue, allowing you to address issues before they escalate and provide support where needed. Regular feedback creates a precedent of open communication and allows employees to make timely adjustments to their performance. Consider implementing regular team meetings to discuss progress, celebrate wins, and brainstorm solutions to challenges.

Tip: Formal performance appraisals can provide a framework for evaluating employee performance over a specific period. These assessments help in identifying strengths, areas for improvement, and areas where additional support or training may be required.

3. Provide Constructive Feedback

Positive or negative feedback is the most efficient and effective way to manage employee performance. Feedback is an essential tool for development. As a new manager, it’s important to deliver feedback that is both constructive and actionable. Focus on specific behaviors and outcomes rather than personal attributes, and make sure to highlight areas for improvement alongside positive reinforcement.

Having tough conversations is an inevitable part of managing employee performance. Navigating these discussions with tact, empathy, and professionalism helps your employees feel supported rather than attacked. Be sure to listen actively to your employees, discuss performance issues delicately and collaborate to remove barriers. 

Consider documenting your feedback writing. A written summary of the discussion you and your employee have during the coaching process serves two important functions. The first is to ensure that both parties are leave the meeting with a mutual understanding of expectations. The second is to maintain an easily referenceable document that you and the employee can use to measure their work. 

Tip: Use the “sandwich” approach: start with a positive note, discuss areas for improvement, and conclude with encouragement. Take our online Performance Coaching course for more strategies on giving positive and constructive feedback.

4. Recognize and Reward Performance

Employee recognition is a powerful motivator in performance management. Acknowledging your team’s efforts can significantly boost morale and motivation. Implement a recognition program that celebrates both individual and team accomplishments. Recognitions programs are proven to enhance individual performance, drive desired behaviors and build a positive workplace culture.

Tip: Encourage peer recognition, allowing team members to appreciate each other’s contributions, fostering camaraderie and teamwork. On a tight budget? Here are 10 Ways to Recognize Your Employees for Free.

5. Invest in Employee Development

Investing in your team’s growth is crucial for long-term success. Encourage your employees to seek out continuous learning and professional development opportunities. Whether it’s workshops, online courses, or mentorship programs, provide resources that align with their career aspirations. Keep in mind that development doesn’t have to be associated with advancement, development can simply mean developing their skills within their current role.

Tip: Establish a professional development budget per employee and give them the freedom to determine how to best utilize those funds to achieve their career goals.

6. Addressing Continued Underperformance

If an employee fails to improve their performance after verbal coaching, it’s essential to lean in and take quick action to address the ongoing performance issues. Consider moving to written corrective action to document the performance issues, the impact of those deficiencies and your expectations for immediate correction. Schedule regular follow-up meetings to review their progress and provide real-time feedback. This structured approach not only shows your commitment to their development but also provides a clear path to improvement.

Tip: To learn more about writing and managing corrective actions and preparing for terminations, take our online Effective Performance Management and Lawful Terminations course.

7. Monitor Progress and Adjust

Performance management is not a one-time event; it’s an ongoing process. Regularly monitor your team’s progress toward goals and be willing to adjust strategies as needed. This adaptability demonstrates your commitment to their success and can lead to improved outcomes.

Tip: Use performance metrics to track progress and identify trends. This data-driven approach can guide your decisions and help in providing tailored support to team members.

Conclusion

Effective performance management is a crucial skill for any new manager. By setting clear expectations, fostering open communication, providing constructive feedback, recognizing achievements, investing in development, and addressing continued underperformance, you can create an environment where your team thrives.

Ready to take your leadership skills to the next level? Explore our library of online courses at Solvere HR Academy, where you’ll gain the insights and tools new managers need to lead your team to success. Your journey as a manager is just beginning, and with the right strategies, you can make a significant impact on your team’s performance and engagement.

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Solvere HR Consulting provides practical HR solutions that optimize your organizational capability and profitability through your most valuable asset — your employees. Learn more about us at www.solverehr.com.

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