Why Performance Management Should Include Specific And Progressive Career Paths For Your Employees

If you’ve only viewed performance management as a tool to assess employees and the quality of their work on a project, you’re missing the bigger picture of the concept. Performance management is more than just evaluating employees. It can also be used to not only help employees build and maintain a career path but it is a great tool for reinforcing the company’s mission, values, and goals.

According to a recent article in Harvard Business Review, having a stable and defined career path for employees goes a long way towards attracting and retaining top talent. The article covered a study performed by Glassdoor that seeks to uncover why employees left previous employers.

What Employees Really Want From You

Your employees want the same thing you do, they want to receive competitive pay for their work and that they have a future in their career. If they feel they aren’t receiving either one, there is a very good chance they will leave your company.

As you probably already know, losing a good employee has substantial consequences, both long and short term, in lost production and revenue.

According to the Glassdoor study, pay is important, but it is not the only thing employees use to value their jobs. People also want to know there are opportunities for advancement and increased responsibilities. In other words, they want to be able to see a growth path which includes more meaningful responsibilities.

Employees left in positions for too long are far more likely to leave a company, even if they are receiving competitive pay. In a way, as you are using the principles of performance management to assess them, they are doing the same with your company. If they feel there is little chance they won’t be assigned to different positions, or move up, they will seek their career advancement someplace else.

Carve A Career Path For Each Employee When They Are Hired

In fact, creating a career plan for each employee is good for both your business and the employee. Nobody benefits from an employee who is left languishing in the same position for too long.

The Glassdoor study also showed that for every additional ten months an employee remains in the same position, the chance he or she will leave increases by one percentage point. If the employee does leave, you will incur recruiting and hiring costs to backfill the open position…not to mention the cost due to lost production hours.

This is not to say that pay doesn’t matter. Salary is important and making sure your employees are appropriately compensated creates a strong bond.

Company Culture Also Matters

Regularly examining your company culture and its impact on employee performance is critical. Does management encourage advancement? Do you offer a chance for staff to expand their skills? Are there people you can point to that have moved “up the ladder” to more significant positions?

A key element in this exercise it to tie it back to your company’s mission statement and core values. People want to work for positive organizations. They want to work in companies where the culture supports progression, innovation, and one that adheres to their core values.

At Equal Parts we work with small to medium-sized businesses to help attract and hire employee that fit. We also help companies develop career paths for their teams that inspire employees and expand their professional skills. Your company will undoubtedly reap the rewards of a highly engaged and motivated staff.

We invite you to sit down with us and discuss your performance management and how you can sharpen it, so you can not only hire great employees but also retain them for years of excellent service.