The start of a new year is an ideal time to reflect on your business’s current practices and set a course for growth and improvement. One area that is critical to success but often overlooked is performance management – particularly when it comes to ensuring that your managers and employees have the support, tools, and guidance they need to excel. It’s easy to assume that everything is running smoothly in terms of leadership and HR processes, but it’s crucial to assess how well these systems are truly working on the ground.
A disconnect between leadership’s perception and employees’ actual experiences can have a significant impact on productivity, employee retention, and skill development. By taking proactive steps in the right areas, your business can create a more aligned, effective, and motivated workforce. With the right HR team in place – like SH Consulting Group – you can lay a solid foundation for success in 2024.
Do: Empower Your Managers with the Right Resources
Why it matters: Managers are the critical bridge between your company’s vision and the execution of daily tasks. They help transform business goals into action, supporting teams and ensuring alignment. But without proper support, training, and the right resources, managers can become overwhelmed, struggling to stay effective and motivated. This can lead to miscommunication, inefficiencies, and ultimately a disengaged workforce.
How to do it: Investing in comprehensive manager training and providing ongoing resources is essential to help your leadership team stay effective and productive. Make sure managers have access to tools that allow them to better track progress, give constructive feedback, and align team goals with the larger business objectives. HR plays an essential role in ensuring managers are equipped with the right training, skills, and clarity to guide their teams with confidence. This includes leadership training, performance management systems, and actionable feedback processes to ensure employees feel supported and guided.
Don’t: Expect your managers to perform at their best without giving them the proper tools or guidance. Failing to provide adequate training and resources can undermine your entire workforce’s productivity, as managers will be less equipped to handle challenges, leading to frustration and burnout within their teams.
Do: Focus on Employee Growth and Career Development
Why it matters: Today’s employees aren’t just looking for a paycheck—they’re looking for growth, skill development, and opportunities to advance their careers. When employees feel their professional development is stalled, they’re more likely to disengage and even leave. If you want to retain top talent and build a loyal, productive team, investing in career development is essential.
How to do it: Create clear, structured career development paths for employees that align with both their personal aspirations and the business’s goals. Offer opportunities for skill development through mentorship, training programs, and career coaching. When employees see that they are being invested in and that they have a clear path to grow within the company, they are more likely to stay engaged and committed. HR can play a key role in designing and implementing these programs, making sure they are accessible to all employees and aligned with company objectives.
Don’t: Assume that employees will be satisfied with the job they have right now. Failing to prioritize career development can lead to a disengaged workforce, increasing turnover rates and making it more difficult to attract new talent. Employees who don’t see a future with your company may start looking elsewhere, taking valuable skills and knowledge with them.
Do: Invest in Purpose-Built Tools for Performance Management
Why it matters: Managing employee performance isn’t just about annual reviews or sporadic feedback; it’s about creating an ongoing process that allows for real-time tracking, feedback, and support. Performance management tools are designed to help managers and employees set clear goals, track progress, and align with company objectives. When these tools are used correctly, they create a much more organized and effective feedback loop.
How to do it: Invest in purpose-built performance management software that allows both managers and employees to have a clear, real-time view of their goals, progress, and areas for improvement. These tools make it easier for employees to track their development, receive actionable feedback, and access training materials. Additionally, they help managers stay organized and aligned with company goals, ensuring that they are effectively supporting their teams. Employees who have access to specialized tools for development are three times more likely to feel supported in building their skills and career paths, compared to those using generic systems.
Don’t: Rely on outdated or generic HR tools that don’t offer the same level of support or functionality. Without the right systems in place, it becomes much harder for both managers and employees to track progress, stay engaged, and develop the skills necessary for long-term success.
Do: Create a Positive and Supportive Work Environment
Why it matters: Creating a positive work environment is crucial for employee engagement and overall productivity. When employees feel valued, heard, and supported, they are more likely to be motivated, loyal, and committed to helping your business succeed. A positive workplace culture reduces turnover, promotes teamwork, and ultimately drives better business outcomes.
How to do it: Foster a workplace culture that encourages open communication, recognizes achievements, and supports employees in both their professional and personal development. Encourage managers to have regular check-ins with their teams, ensure that feedback is both positive and constructive, and provide opportunities for employees to voice concerns. HR should play an active role in creating a supportive environment by implementing initiatives that promote mental well-being, work-life balance, and inclusive practices. When employees feel valued and supported, they are much more likely to stay engaged and contribute to the company’s success.
Don’t: Overlook the importance of workplace culture. A lack of attention to employee satisfaction and well-being can lead to high turnover, low morale, and disengaged employees. Without a strong, supportive environment, it becomes much harder to keep your best employees and foster a productive, loyal workforce.
Do: Give Clear, Consistent Feedback
Why it matters: Feedback is essential to performance management. Regular feedback helps employees understand how they are performing, what areas they need to improve, and how they can develop their skills further. A clear and consistent feedback loop enables employees to stay on track and feel motivated to grow.
How to do it: Implement a system of regular, structured feedback that occurs throughout the year. Feedback should be specific, actionable, and delivered in a timely manner. Encourage managers to conduct regular one-on-one meetings with employees to discuss performance, set new goals, and offer guidance for improvement. HR can help train managers to deliver feedback effectively, ensuring it is constructive, respectful, and aimed at helping the employee succeed.
Don’t: Wait until annual reviews to provide feedback. Without ongoing feedback, employees may feel disconnected from their goals and unsure of how to improve. Failing to address performance issues early on can lead to a lack of direction and motivation.
Do: Invest in Your HR Team’s Development
Why it matters: Your HR team is at the core of your business’s success. They’re responsible for setting the tone for company culture, handling hiring and employee relations, and ensuring the overall health of your workforce. When your HR team is well-supported and well-trained, they can more effectively support your managers and employees.
How to do it: Provide your HR team with ongoing professional development, access to the latest HR technologies, and opportunities for growth. A well-trained HR team is better equipped to handle complex challenges, support managers with the right tools, and create a thriving, engaged workforce. By investing in HR, you ensure that your team is set up for success and capable of supporting your business’s growth.
Don’t: Neglect the development of your HR team. An underdeveloped or unsupported HR team will struggle to implement effective strategies, leaving managers and employees without the guidance they need to succeed.
Set Your Business Up for Success
Starting the year with a solid plan will help your business thrive throughout 2025 and beyond. By focusing on empowering your managers, supporting employee growth, investing in the right tools, and building a positive work environment, you’ll set the foundation for a strong, engaged workforce.
HR teams like SH Consulting Group play an essential role in making this vision a reality. They provide the support, guidance, and resources necessary to help your business – and your employees – succeed. Take the opportunity this year to invest in your HR strategies and watch your business grow.