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A Willis Towers Watson study found that only 20% of North American employers believe pay based on merit improves performance. It might seem like a simple and direct way to motivate and retain top-performing employees, especially with bonuses based on performance, but it’s actually not as simple as it looks.
Back in 2018, the Performance Magazine editorial team interviewed Tom McKeown, CEO at TrenData, USA. His thoughts and views on Performance Management are presented in detail below.
Human beings in a free market society are always looking to move on or up. In addition to grading individuals on how they are doing in their current job, it’s motivating to let them know what levels they need to hit.
Performance appraisals are an opportunity for employers and employees to have a dialogue on past achievements and future development plans.
Using specific performance management tools such as the employee performance plan to include the necessary competencies and behaviors, performance criteria and the expected outcomes, can help avoid bias. Moreover, it leads to employee appraisals that are based on data and reflect on actual accomplishments and progress.
With more than 40 years spent working, every person in this world has at least once asked themselves what the purpose of all this is and what keeps them running.
Many individuals begin their careers in the field of Business/Performance Management. For others, such knowledge comes over time, as an added layer of specialization to their existing primary professional prowess.
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