Frequently asked questions

Your questions answered

What is performance management?

Performance management is the process of making sure that workers contribute effectively to organizational goals. With an agreed set of priorities, responsibilities and measurable goals, managers and workers can review progress and determine how well the worker is contributing.

In performance management, workers who consistently outperform their goals and targets are recognized and rewarded. They may be promoted to take on more responsibility. Workers who underperform may be supported to improve their skills and delivery through coaching or training.

The role of HR systems in performance management

Modern performance management processes are often supported by HR Management Systems. These provide a digital record of progress, accessible by employees and their managers. Also, performance management systems may build in feedback from colleagues and customers to provide a richer picture of the employee’s contribution and development needs.

A two-way review process

Regular performance reviews between employees and managers help to optimize contribution and focus. These may be face-to-face meetings or remote reviews. Discussing and reviewing progress against objectives helps employees keep on track with their tasks and projects. Managers can give encouragement, praise, support and advice where needed. Workers have the opportunity to raise any issues and seek help.

Building a wider picture of employee performance

Performance management reviews usually include development and career management as a topic for discussion. Together, the employer and employee build up a picture of current skills and experience, aptitude and attainment as well as the worker’s personal goals and ambitions. A development plan can help advance the worker towards the next step in their career plan. This may include gaining experience in different roles or undertaking training or study.

When executed well, performance management engages and motivates employees, who know that their efforts and challenges are recognized and that they can access support directly when they need it. It also allows organizations to make a fair assessment of employee performance and the impact on company performance.

Help your people to perform at their best, day in day out. See how you could manage your people’s performance, skills and development with Sage People. Back to top