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When your employees feel happy and valued, they provide better service to your customers. Your customers are happier with your company and spend more money. Everyone wins in this scenario, but it isn’t always easy to achieve. It takes implementing, monitoring, and adjusting a performance management policy that brings out the best in people.


What is Performance Management?


Performance management simply means a process where employees and managers work together to create an employee’s work objectives and how well they enable him or her to contribute to the organization. It is often a complex process that requires several actions from both parties. However, it’s possible to break it down into a high-level five-step process. These steps are as follows:


Goal planning:

During the initial phase, an employee and his or her direct manager should meet to discuss the employee’s future performance goals. This could start with a review of the formal description of the employee’s job duties and then comparing them to what he or she actually does most days. From there, the conversation should steer towards the employee’s stated goals along with the tools and standards required to reach them. It’s now time for the manager to step in to discuss short-term responsibilities that could help the employee meet long-term goals. Other factors may also come into play, such as how well the employee’s primary duties reflect the mission statement of the company.


Monitor progress:

Monitoring doesn’t need to have a negative connotation when it’s done correctly. It just means that the employee and manager should meet regularly to check progress, identify barriers, decide if the employee requires additional support from managers or co-workers, and determine if his or her responsibilities still match well with company goals. Conversation should be natural and comfortable without the employee feeling that it’s only the manager’s input that matters.


Employee development:

The employee and manager should have identified some growth areas in the previous step. During the development stage, they should work together to locate new training opportunities, create a plan for regular coaching, and decide which new responsibilities the employee should take on. Regular feedback keeps the employee motivated and helps to prevent misunderstandings that could stagnate his or her growth rather than move it forward.



This refers to the official ratings that an employee receives during a performance review. Before the manager delivers the rating, the employee should clearly understand the options such as meets, exceeds, or doesn’t meet standards. It’s also important that employees can rate themselves and to feel comfortable voicing disagreement with their superior. A 360-review, which involves collecting feedback from customers, co-workers, and other managers, is another option for the employee’s performance review.



When an employee meets or exceeds a goal, it’s custom to reward him or her with a bonus, raise, promotion, or some other form of recognition for a job well done. The performance review process should remain consistent for all employees and the rewards to one employee should act as incentives to others to want to achieve the same thing.


Without performance management, employees can become disgruntled and quit. This type of revolving door is never good for business. Although a strong program takes time, effort, and resources, the payout is productive employees who feel dedicated to the company.

Palmetto Payroll offers a variety of services that we’re happy to tailor to meet your business needs. Located in Columbia, South Carolina, we serve clients throughout the state. Please contact us today and let us see how we can help your business.