1、How to Use Performance Management to Inspire Employee Growth2IntroductionGrowth is the engine of high-performing teams.But tapping into employee growth long-term hinges on organisations viewing it as more than a performance tactic.Employees want a career,not a job that views their skills as a transa

2、ctional process.They need opportunities to progress,learn,and challenge themselves.They want help in envisioning their future,and support for charting a course to get there.Undirected growth without a clear link to performance goals isnt an effective way to improve your bottom line.But when organisa

3、tions get this blend right,they create a workplace that centres growth in the context of the entire employee lifecycle.They understand how giving employees the resources and support to find the right growth path motivates them to focus their learning,set challenging new goals,and exceed performance

4、targets.Crucially,they understand how this balance leads to motivated,productive,and happy employees who are inspired to give their all when they come to work.In this ebook,well explain the link between performance management and employee growth.Well also provide four actionable ways to integrate th

5、e two processes successfully,so you can get started building a framework for growth that supports a high-performing,engaged team.Growth thats purely framed as business objectives doesnt give your employees the room or option to grow.3Why Investing In Growth Pays Off For PerformanceOrganisations ofte

6、n view employee growth as a path to better performance and this logic seems like it makes sense.After all,when employees consistently develop the skills needed to make their organisation more competitive,it should all add up to long-term business success right?Not exactly.This approach emphasises pe

7、rformance as the sole stimulus for growth.It sends a message that you value your employees output more than what they bring to the table,and it provides an incomplete picture of how growth contributes to the larger employee experience.And this has a knock-on impact on your employees intrinsic motiva

8、tion to bring their full selves to work.Growth is an essential building block of employee engagement.When employees feel theyre able to develop their skills and learn new things at work,it creates a greater sense of self-fulfilment and sense of meaning,which increase motivation and engagement.Resear

9、ch backs this up,too:Organisations that invest in growth experience higher retention and job satisfaction.They also see higher levels of organisational commitment,because when an employee feels like their organisation is invested in them,theyre more likely to return the favour.Growth boosts engageme

10、nt,and engagement fuels performance and its the same in reverse.Your top performers are likely to be among your most engaged,and theyll naturally be more motivated to seek out the development opportunities that help them bring their all to their role.The problem is,employees dont feel theyre getting

11、 enough growth,according to our 2021 career progression survey:of employees said they were either actively looking or considering looking for a new job if it offered them the growth opportunities theyre looking for.47%of employees said they would be somewhat or very likely to leave a role if they we

12、re dissatisfied with the progression opportunities available.76%4Percentage of Employees Looking for a Job That Offers Career Progression TransparencyGrowth and career progression are the driving factors behind why employees join and leave an organisation.And with the lingering effects of the Great

13、Resignation,an increasingly globalised workforce,and a volatile market for talent,the pressure has never been higher for organisations to step up to the plate and make good on employee development if they want to keep their best people.Performance appraisals and feedback have always been instrumenta

14、l drivers of employee growth,but weathering the coming challenges means implementing practices that support growth as a holistic process,as well as one that enables performance.That means providing employees with the opportunities and resources to meaningfully shape their careers,not just learn the

15、skills to guarantee hitting targets.And sometimes,it means paving the runway to help your employees take off if its time to leave.Integrating performance management and employee growth is central to this shift.When organisations view growth and performance as integrated concepts,theyre better able t

16、o tap into what motivates their employees,and provide the opportunities and resources that instil long-term learning.Along the way,this contributes to greater levels of trust,psychological safety,and engagement that sustain performance long-term,creating a workplace where employees feel motivated to

17、 give their all.25%37%Gen Z Millennials18%Gen X7%Baby boomers5How to Integrate Performance and Growth Integrating performance and growth successfully means youre better able to help your employees create and accomplish goals that fulfil your strategic objectives,while keeping their individual growth

18、 needs front and centre.Nurturing these two processes together depends on creating systems and norms that encourage goal setting,build mutual trust,and help your employees envision their future career whether they stay at your organisation or not.To help you integrate growth and performance successf

19、ully,weve developed a four-step framework to guide you in building the key processes,relationships,and structural components that underpin a high-growth,high-performing team.1.Introduce developmental reviews.Getting the balance right on performance and growth requires you to frame employees skills d

20、evelopment more holistically in the context of their larger career trajectories.In simpler terms,where do they want to go,and how can you help them get there?This is where developmental reviews come in.Developmental reviews are formal employee-led conversations that help shape employee career goals

21、and aspirations.Developmental reviews zoom in on individual goals that enable your employees to learn the skills and capabilities they need either for their current role,or to chart a path to a future one.Performance appraisals are a measurement-driven process that help organisations quantify how an

22、 employee is contributing to their company.They keep employees aligned to strategic objectives,identify top performers,and can often be tied to compensation like a financial bonus for exceptional work.Development-focusedAspirationalEmployee-ledDevelopmental ReviewsTailored to each employeeNot tied t

23、o compensationEnsure employee progress on personal objectivesIdentify skill/competency gapsMeasurement-focusedReflectiveLed by managers,employees,and peersPerformance AppraisalsStandardised across all employeesOften tied to compensationEnsure employee alignment to the organisations strategic objecti

24、vesIdentify high-performers6Performance appraisals focus on short-term strategic goals,while developmental reviews provide the longer-term investment that gives your employees room to grow.Developmental and performance reviews are complementary processes that,when implemented together,create a compl

25、ete understanding of your employee experience.Building Your Developmental Review ProcessResearch shows developmental feedback has a direct positive impact on how employees view and shape their work and roles,because it contributes to their motivation to seek new resources,expand their skills,and ide

26、ntify new challenges to sink their teeth into.Feedback is also associated with increased organisational commitment and career satisfaction.In other words,developmental feedback means your employees are far more likely to be invested in shaping their skills and learning processes to make their role a

27、nd work more meaningful.As a result,theyre more engaged and motivated to perform at their best.The best developmental reviews are characterised by four key traits:Continuous:Employees career aspirations change all the time,so its important to check in regularly to help shape their aspirations and ad

28、just performance targets.Employee-led:A 2019 meta-analysis of performance management research found that when employees are involved in the performance management process,theyre more satisfied with the feedback and perform better.This is why employees must have ownership over their career developmen

29、t to buy in.Individualised:Individual performance targets usually feed into a larger team-level or strategic goal but its not the case with developmental goals.These must be tailored to how each employee views their future career growth to help them connect their goals with their aspirations.Actiona

30、ble:The most effective goals offer a good level of challenge,but arent so challenging that theyre off-putting.Managers must help employees break bigger goals down into more manageable pieces so that employees have a sense of progress and achievement.While developmental conversations must be employee

31、-led,managers should provide prompts and questions that guide self-reflection and evaluation.7Guiding Questions for Developmental Reviews Which 2-3 of your strengths would you like to build on in the coming months?What were your most significant accomplishments during the performance period?What 2-3

32、 areas of development would most help you grow in your role or in your team in the coming performance period?Are there any specific projects,tasks,or responsibilities that you could take on to move toward your career goals?The frequency of developmental reviews will largely depend on your existing p

33、rocesses,but as a rule of thumb,you should give them the same attention that your organisation gives traditional performance appraisals.That means that if you run quarterly performance appraisals,youll need to schedule quarterly developmental reviews as well.This is because goal-setting and feedback

34、 processes are most effective when they feature regular check-ins.If your organisation follows an annual cadence for review processes,then weekly one-on-ones and informal development conversations on a monthly or quarterly basis are an impactful way of filling this gap while staying connected to cha

35、nging employee needs.2.Use individual development plans to set career goals.In the past,job progression has often been informed by hierarchy,performance,and tenure.But as companies continue to adopt flatter hierarchies and emerging roles reshape employee skills needs,its easy to see how career paths

36、 are becoming less clear-cut,and how upward progression is no longer always the primary career goal.Career progression is now more individualised than ever before,and industry research is showing its increasingly steered by employees,not at an organisational level.Employees have never had more freed

37、om to shape their career paths and skills to fit this evolving new context.But thats not to say they dont need a direction of travel to help shape their goals and aspirations.And this is why its key to have effective short-and long-term goal-setting processes in place.Goal-setting is most often cons

38、idered as a strategic or operational practice.When used effectively,its vital for driving performance.Goals encourage your Sales team to pull together to hit their quarterly revenue target,and mean your Customer Success team will try to maintain a high customer satisfaction score.These kinds of goal

39、s rely on extrinsic motivation,which is driven by an external force,like a reward or punishment.The Sales team might not get their commission if they dont hit targets,and Customer Success might miss out on an opportunity for a bonus.8But lets set the SMART goals and OKRs aside for a second;goals are

40、 an immensely powerful motivator even when theyre not attached to a performance-based target.This is because intrinsic motivation our internal motivation for doing something simply because we enjoy it has a significant positive impact on our desire to accomplish a goal.Managers can tap into their te

41、am members intrinsic motivation by helping them write individual development plans(IDPs).Creating an IDP Framework That Grows With Your EmployeesIDPs are collaboratively written documents that employees create with their managers to define short-and long-term career goals.They add shape to career as

42、pirations,and lay out the supportive and educational resources needed to support employee growth,helping employees feel more connected to long-term progress.Setting these goals collaboratively means employees get a say in what sounds fair,meaningful,and realistic,while writing them down makes employ

43、ees even more likely to commit.The result?Employees are almost four times more likely to be engaged and almost 20%more productive.One education-focused study even reported that writing goals down increased student performance by 22%.But to encourage employee growth and future goal setting successful

44、ly,IDPs need to evolve with your employee.This is why fleshing out your employees career vision and growth plans is critical.9The career vision portion of an IDP represents the image your employee calls to mind when they think of their future career.Its less defined by role,and more by what motivate

45、s your employee.As such,its about identifying the key motivators,conditions,and sense of purpose that define whats most meaningful to them at work.Meanwhile,the growth plan is the roadmap to help them get there.Its the short-term skills and direct actions they can take to enhance their role and perf

46、ormance.Its more closely tied to their role,career track,and competencies.As an example,an employee may have a career vision of becoming a manager or senior leader.The growth plan part of their IDP might include leading a major project,taking a course on people management,or working with a mentor to

47、 improve their leadership skills.When employees know the plan for their short-and long-term goals,it means theyll feel more committed,motivated,and supported in bringing those goals to fruition.3.Create career tracks that do more than set expectations.Effective employee performance evaluations rely

48、on having the frameworks and criteria that give you a guideline to measure employee progress.Job architecture is a key part of this process,because it helps employees understand their job level,key competencies,and provides a reliable criteria to measure progress.Job architecture comprises two key c

49、oncepts that drive further meaning and clarity around progression:levels and competencies.Job Levels help employees understand their position within an organisations greater hierarchy.They outline exactly whats expected from an employee in their role,and provide context on what they need to do to le

50、vel up.Competencies address the skills or qualities that ensure an employees success in their role.They can be framed in terms of general characteristics (such as adaptable or collaborative),or role-specific characteristics(such as project management or writing).In a performance appraisal,levels and

51、 competencies give managers and employees a clear framework to evaluate progress,and remove ambiguity around areas for improvement.They provide clarity on what an employee needs to do to meet expectations.Theyre great for measuring past performance but when combined,theyre also an effective tool tha

52、t helps employees focus on their future career,because they provide key information on the steps needed to advance.This is known as a career track.Career tracks give employees detailed information that fill in the what and the how of moving up a rung in their career.They help employees understand ex

53、actly which skills they need to develop or attain,and how expectations in performance differ from one level to the next.10Psychologically speaking,having clearly defined goals like in the form of a career track boosts our motivation and our performance.Clarity over the what,specificity on the how,an

54、d the promise of a new challenge all tap into our internal desire to set and tackle new goals.But its also because the future is a far more powerful motivator of behaviour change and performance than reflecting on the past.In a 2020 study on managerial feedback,researchers found that when we think a

55、bout past performance,we tend to focus on the factors beyond our control.But when we focus on successful future performance,we naturally shift into a goal-directed mindset.Plus,when employees have a clear understanding of their role,where it fits in,and whats expected of them,theyre much more likely

56、 to take constructive feedback on board.For your employees,this means that when future career progression feels opaque or ambiguous,its unclear how theyre being evaluated according to the requirements of their role.This decreases motivation,diminishes the impact of feedback,and negatively impacts pe

57、rformance.OwnershipCommunicationTechnical AbilityCompetenciesSoftware Engineer ISoftware Engineer IIPrincipal EngineerYou effectively execute tasks as an individual,maintaining a high level of quality.You set and meet timeline expectations for your work.You often own project-level goals involving mu

58、ltiple engineers.You break down ambiguous tasks into clear milestones to ensure progress can be measured.You transcend organizational boundries and proactively identify the best ways to drive business value.You work in close partnership with senior leadership to influence the overall directionof eng

59、ineering.When employees have a clear idea of the criteria needed to advance,they know exactly where to focus their energy.Career Track1176%But when employees have a clear idea of the criteria needed to advance and that criteria feels realistic and fair they know exactly where to focus their energy,a

60、nd how they can shift their behaviour to achieve their goals.4.Leverage one-to-ones to talk about more than work.Performance management processes can often feel like a pressure cooker of stress for both employees and managers.Research shows that employees dont always trust their managers to rate the

61、ir performance fairly.Plus,employee reactions to the feedback provided in the appraisal process is entirely dependent on how positively they view their relationship with their manager.This tells us that manager-employee relationship-building is a critical component to fostering performance and growt

62、h long-term.One-to-ones are the most high-impact,low-cost way of nurturing this relationship.One-to-one conversations are an important building block of a continuous feedback model.Theyre helpful for staying aligned on mutual goals,but theyre also an essential opportunity for managers to build trust

63、 with direct reports,exchange feedback,and talk in more informal terms about career goals and aspirations.12Creating Effective One-to-One ConversationsOne-to-ones are most effective when theyre ongoing,consistent,and employee-led.If theyre spaced too far apart or occur at irregular intervals,they do

64、nt give employees enough time to consistently build a solid relationship with their manager.Managers are more likely to miss the more subtle week-to-week clues that help them better nurture employee development.And while schedule conflicts are sometimes unavoidable,if a manager consistently cancels

65、one-to-one meetings in favour of other tasks,it shows employees that their needs are not a priority.This undermines trust and psychological safety,meaning employees will be less likely to share challenges and career aspirations.Employees must feel empowered to bring an agenda to the table,adding in

66、some light structural elements will help managers guide more fruitful conversations around their employees development that might otherwise fly under the radar.Guiding Questions for Career Development ConversationsFor more question ideas and support for running effective one-to-ones,download our tem

67、plate for career development conversations.Running Successful One-to-Ones in Hybrid or Remote EnvironmentsAs companies increasingly shift to hybrid or remote work,its having a significant impact on employees perception of their career development.For one,remote employees increasingly report that the

68、ir achievements feel less visible in a remote working environment.Video conferencing also leaves them feeling frazzled and burnt out.And if we add on the fact that Zoom calls strip away many of the natural human cues we rely on for relationship-building,its easy to see how employees might be feeling

69、 more anxiety around their career development and progression.How have you been feeling since our last chat?What tasks or projects did you enjoy working on since our last one-to-one?What tasks or projects have you found frustrating or enjoyed less?Do you feel that you got to focus on any development

70、al goals since our last meeting?How did that go?What kind of work would you like to do more frequently?How can I better support you in your role?13Removing this layer of in-person contact makes regular one-on-one conversations and other communication touchpoints especially critical.Without regular g

71、uidance and opportunities for mutual feedback,your remote employees are likely to feel that if theyre out of sight,theyre out of mind.Keeping performance and growth high in a hybrid working environment requires being sensitive and supportive to this background anxiety,and using one-to-ones as a plat

72、form to keep career aspirations and growth in focus year-round.Key Takeaways for HR Leaders and ManagersPerformance management tactics like reviews and goal setting arent just about measuring outcomes for the business.When adapted,they can offer clarity in other ways inspiring meaningful career grow

73、th that drives a workforce of engaged,motivated employees.Structures like IDPs,career tracks,and developmental reviews are not the same processes as performance management,but they can empower your employees in similar ways:OKRs and goals give teams clear,actionable targets that drive performance.ID

74、Ps fill the same need for individual employee growth.Traditional performance appraisals give employees an opportunity to reflect on their performance.Developmental reviews guide employees to reflect on what they want to see in their own careers,and make plans for their development.Competencies can b

75、e used to review output against expectations.But when combined with levelling,they create career tracks,which spell out what it takes to earn that next promotion.In many ways,performance and growth are parallel,symbiotic processes.Thinking holistically about them empowers you to get more out of both

76、.Lattice was built with this purpose in mind.We believe that performance,engagement,and development belong together.Thats why weve built our people management platform to integrate all three,making career conversations easier and more effective for employees and managers alike.To learn more about ho

77、w Lattice can help you seamlessly integrate employee growth and performance management,request a demo.About LatticeLattice is the people success platform that enables HR leaders to develop engaged,high-performing teams.By combining continuous performance management,employee engagement,development,co

78、mpensation,and growth in one solution,organizations get powerful,real-time analytics that leads to actionable insights turning managers into leaders,employees into high performers,and companies into the best places to work.The Lattice People Success PlatformLattice works with companies that aspire t

79、o put people first.Whether redefining the beauty industry or building self-driving cars,all of our customers have one thing in common:They value their employees and want to invest in the development and success of their people.To see Lattices platform in action,schedule a product tour.Trusted by the best places to workJoin 4,250+organizations that use Lattice to help power their people strategyRequest a demo