Performance Management Motivation: How and What Every Startup Must Know

The birth of a company can be a fun time - but also an extraordinary experience. There is so much to do and many things to remember, everything seems important. When everything is extraordinary, it's important to go back to basics and remember that in essence all of your people - your people, their efforts and their loyalty - at the center. If you want to promote a high level of employee involvement and create an environment that encourages high productivity, investing time and effort in creating a motivating performance management system is important.

This is what every entrepreneur must know about performance management, what to avoid, and what tools prove effective.

What you should consider when starting a performance management system from the ground up

So where do you start when you create a performance management system? Before you can make any significant decisions, you should first determine the specific values of your business. Your values are important to every aspect of your organization and affect everything from your recruitment to your overall goals. Therefore, it is important that you think about it seriously. Regardless of whether your company values transparency, creativity or flexibility, these are all values that can be incorporated into your performance management system.

It helps to ask yourself the following questions. They help you to control and influence your performance management processes in the future:

-Will the performance discussions of my company be annual or more frequent?
-What attitude will my company have for flexibility?
-How much autonomy do I give my employees?
-How can I ensure a culture of authentic and transparent communication?
-How does my company address the training needs?

Motivation performance management practices

Certain processes have proven to be motivating, resulting in more performance and commitment. Science and studies exist to support these processes, and companies around the world have begun to implement them and receive the reward.

Here are just a few examples that you should consider as part of your performance management system:

1. Regular Coaching Talks - Employees need regular feedback and must earn it. When feedback is fast, specific and regular, employees can be better prepared and exceed expectations. Regular coaching sessions also enable employees and leaders to build a trusting relationship. This is important when you consider how critical leaders are about employee engagement.

2. Clear SMART Goals - According to the study, only about half of employees are unbelievably aware of what is expected of them at work. When employees do not know what to do, they are unable to satisfy their managers and make meaningful contributions to their business, even if this is important to them. Companies that work closely with their employees and set SMART goals are much more productive, and their employees are much more confident in their roles. Keep this process collaborative and create transparent organizational goals to help employees align their goals.

3. Recognition Programs for Employees - If you want enthusiastic employees, extrinsic motivators like money will only get you so far. According to one notable study, 70% of respondents said that their most meaningful recognition was "not worth the dollar", while 83% of respondents said recognition of their work was more rewarding than financial reward. Another source confirms that as little as a handwritten thank-you can have longer-term motivational effects than money.

To really motivate your employees, they need something more intrinsic, such as the recognition of a job well done. Take the time to thank your staff for their efforts and you will be rewarded for making every effort to continue this mile.

Outdated and non-inspiring performance management tools
Because performance management is a constantly evolving field, there are certain performance management tools that are outdated and irrelevant. These include:

1. Performance Assessments - It may be tempting to include the use of performance ratings because HR prefers certain metrics that can be used as an indicator of a team's performance. However, ratings that reduce the number of employees and disregard the different subtleties and complexities of a given role are more of a disadvantage than helpful. It has been shown that performance ratings trigger a fight or a flight reaction among employees. This is not the condition your employees should be in if they want to perform well.

2. Stack Ranking Systems - Luckily, stack-ranking systems, also called "rank and jerk" systems, are quickly losing out. In such systems, employees are evaluated and each year, on the basis of these evaluations, a certain percentage of the workforce is dismissed. For example, the lowest 10% in your business could be fired every year, regardless of how well they actually worked, how much they have improved, and how much commitment they are making. Such systems lead to uncertainty and unhealthy competition and should be avoided.

3. Annual reviews - Like the stack ranking, the annual reviews are also canceled. At a time when employees expect constant communication and feedback, the annual individual reviews no longer provide value or service. They are not helpful, they try to accomplish too much in one session and are feared by employees and managers alike. For this reason, many companies are switching to continuous performance management.

Performance management is not easy or straightforward - it's a business that can easily go wrong, causing employees to become frustrated and completely different from their own. Well done and with enough effort you have the opportunity to start a business filled with dedicated and enthusiastic employees who come to work every day to successfully develop and grow your business.

Performance Management is a changing field - keeping up with trends

After we discuss the basics, it's important to keep up to date with the latest information. Performance Management is a growing area. What motivates and involves one generation does not always have the same effect on the next generation. In addition, with technological changes and advancements in fields such as human psychology, it is very important that human resources departments maintain the latest performance management trends and adapt accordingly. Organizational change is never easy and requires a lot of time and effort, but the willingness to accept change keeps the company competitive and relevant in the long run.