Studies have shown that focusing on the development and progress of employees results in better performance. Investing in your employees ultimately translates to positive financial benefits for the organization. Companies that create a Continuous Performance Management (CPM) can improve their workforce and inspire their team members, increasing productivity and profitability.
While many companies claim to value their employees, engagement and retention data often tell a different story. To address this, executive leaders must prioritize employee development as a crucial investment in their profit chain.
But what does a good investment in employees look like?
People through Performance
According to a McKinsey Global Institute (MGI) study, an effective employee performance process is crucial, according to over 1800 companies surveyed. In addition, a recent People + Performance (P+P) study shows that investing in employee development can result in higher productivity, engagement, and innovation. At the heart of this study, McKinsey explored how successful organizations maximize human talent's potential.
As the People + Performance study reveals, achieving positive business takes more than just hiring and developing the right talent; you need to create the right conditions to unleash the passion of your people. Hiring and onboarding talent is only the first step in creating the conditions for high performance.
A Holistic Approach to People Management
Talent Development and HR leaders face many challenges when creating conditions for people to thrive at work. Challenging issues include ensuring Diversity, Equity, and Inclusion (DEI) is embedded into the culture, recognition programs that promote physical and mental wellness, compliance training, dealing with hybrid and virtual work experiences, and the next generation of leaders. Today’s successful organizations need a holistic approach to solving the diverse challenges of a 21st-century workforce. Leaders across the organization need the ability to integrate all of these initiatives into their culture while pursuing critical business objectives. Many organizations are adopting technology platforms that address these challenges through one integrated space.
Many companies have left many old ways of doing things behind, like annual performance reviews. There is a significant shift to Continuous Performance Management (CPM) to address multiple business challenges. CPM helps teams and individuals align to practical goals and OKRs (Objectives and Key Results), which makes organizational strategy transparent. This approach makes companies more agile and efficient while developing employees.
Linking Performance to Profit
But it takes more than buying a software solution to improve performance toward organizational goals; it takes a combination of learning and development of people while pursuing those organizational goals. According to Josh Bershin, a thought leader in HR Tech, companies need to reimagine performance management software solutions by developing people and leveraging their skills to execute strategy and drive profits.
Your organization’s performance software should enable ongoing feedback and coaching opportunities for the people executing the strategy–not just the executive leaders overseeing the strategy. By providing regular feedback and support, managers can identify areas where employees need to grow and provide opportunities for learning and development.
Pushing on-demand learning courses into the workflow gives employees the resources and tools to do their jobs effectively. Real-time learning allows employees to apply their learning through their performance. Making learning a part of everyday work develops employees without having to take them away from work. In addition, it helps people build skills.
Inspire Your People to Perform at a Higher Level
Investing in the people of an organization is crucial for its success. An organization's success depends on its employees' continuous performance–not how excellent your strategy is. Passionate people who work are more likely to stay committed and motivated to produce the best results possible.
Continuously improving performance allows individuals to identify their strengths and weaknesses and develop new skills, creating a culture of consistent improvement. When individuals feel like they are being developed, it gives them a sense of belonging and that their contribution is valuable.
Your employees are not just a resource but a valuable partner that needs investment as a human being. Genuine investment in employees is necessary for fostering loyalty and productivity that supports the growth of any organization. Are you continuously prioritizing your people’s performance, not only for their benefit but also for the benefit of the organization, the success of your organization, and the clients you serve?
Investing in employee development is crucial for business success; implementing CPM can enhance effectiveness and create performance transparency that inspires your workforce. Prioritizing employee development aligned with a compelling performance process should be a foundational component of your business strategy.
See how we Inspire People and Performance at inspiresoftware.com.