Skip links

Techniques For Effective Performance Management 2022

Techniques For Effective Performance Management 2022

The latest data shows that 81 percent of HR leaders have plans to make changes to their performance management system in the near future.


Are you part of this group? Do you even have a performance management protocol in place?


Read on to learn more about the importance of a solid employee performance management strategy. You’ll also find some tips on how to create an effective strategy for your team.

What Is Performance Management?

Employee performance management is an ongoing and collaborative process. It involves managers and employees working together to evaluate and improve team performance, increase productivity, and boost engagement.


The primary goal of all performance management processes is to establish and sustain a high-performance culture within the company. When properly carried out, these strategies bring out the best in each employee and help to align their strengths with the business’s long-term vision and mission.

Why Does Employee Performance Management Matter?

If you don’t have an employee performance management strategy in place, or if it’s been a while since you updated your company’s process, now is a great time to make some changes. The following are five of the greatest benefits that come with a practical and effective approach to performance management:

Align Employee and Company Goals

A solid performance management strategy with regular reviews and assessments ensures that everyone in the company is on the same page. They help employees to set clear goals that move the company closer to achieving its overarching objectives.

Increase Employee Development

The best performance management protocols don’t just guide employees through the goal-setting process. They also provide team members with the tools and training they need to expand their skills and continuously improve within their careers.

Increase Employee Engagement

When employees have opportunities to set goals, improve their work quality, and gain new skills that allow them to rise through the ranks of the company, they’re going to be more engaged in their jobs. This also helps them to be more productive on a day-to-day basis.

Keep Lines of Communication Open

A finely tuned employee performance management strategy includes regular reviews and keeps the lines of communication open between employees and team leaders.

This creates opportunities for consistent feedback. It also makes it easier for employees to express concerns and for team leaders to give praise and corrections.

Increase Profitability

When employees are continuously improving, are actively engaged in their work, are more productive, and feel comfortable addressing concerns with their employers, the entire company benefits. All of these outcomes contribute to a better bottom line and increased profitability.

Effective Performance Management Techniques

Now that you know more about the benefits of performance management, let’s break down some techniques you can implement to experience all the benefits listed above. Here are the most effective ways you can assess your employees and evaluate their performance:

360-Degree Reviews

A 360-degree review creates an opportunity for all of an employee’s peers to provide them with both positive and constructive feedback. This assessment gives each person a full-circle view of their performance, including the things they do well and the areas in which they need to improve.


A 360-degree review is a highly democratic performance review tool because it uses opinions and feedback from all team members, not just one manager or team lead.

Performance Appraisals

A performance appraisal is one of the most common tools for individual performance management. It is a fair, honest, and productive conversation between an employee and their supervisor or manager.


These conversations need to be collaborative, two-way discussions. Otherwise, it can feel like the manager is just checking boxes for the sake of saying they did a review, which isn’t conducive to improved performance and may even decrease the employee’s engagement.

Management by Objectives

Management by Objectives (or MBO) involves defining a set of specific objectives, then outlining how each one will be achieved.


Team leaders and managers can use these objectives to measure individual employee performance and make sure they’re upholding the standards they set previously.


MBO helps to get all team members on the same page and ensures everyone is working toward the same goals. This boosts motivation and morale.

Balance Scorecards

Balance scorecards are popular performance management tools that allow managers to clarify and communicate the business’s key objectives and priorities. They also make it easier for them to monitor progress by measuring how closely employees are delivering on these objectives.

Personal Development Plans

Personal Development Plans (or PDPs) are individualized plans that reflect each employee’s performance and unique needs. They help managers to work with their team members to set goals and create action plans that support personal development.

Role Clarification Sessions

Role clarification sessions involve managers sitting down with employees to discuss exactly what each person’s job role entails — and what’s expected of them.


This technique helps to get everyone on the same page. It also ensures there’s no confusion about what the employee should be doing on a daily basis.

Bonus Performance Management Tips for Team Leaders

It’s not enough just to use these performance management techniques. Here are some additional tips to help you get the most out of the strategies from the previous section:

Set Clear Expectations

No matter what kind of performance management approach you plan to use, one of the keys to success and long-term improvement is setting clear expectations for your team. If people don’t know what you want from them and what you’re trying to achieve, how can you expect them to perform and progress?

Be Collaborative

Performance management shouldn’t feel prescriptive. Your employees should feel that they’re active participants in their growth and improvement, rather than feeling like you’re talking down to them and telling them what they’re doing wrong.

Provide Appropriate Training Tools

Give your employees the tools they need to improve their performance, enhance their skills, and get better at their jobs. This might include providing access to certain types of tech, providing mentorship and job shadowing opportunities, or paying for continuing education courses.

Schedule Frequent Reviews and Evaluations

Don’t limit yourself and your team to just one performance review per year. The most effective performance management strategies include regular reviews, evaluations, and check-ins to see how employees are progressing toward their goals.

Recognize Good Work

Finally, don’t forget to recognize when employees do make progress or improve in some way. Employees are much more likely to stick with your company and stay engaged if they feel that they’re appreciated and recognized by their team leaders.

Level Up Your Performance Management Strategy Today

Are you ready to make some changes to your performance management strategy in 2022? Keep the performance management tips discussed in this guide in mind and you’ll set yourself and your team up for long-term success.