Performance management boosts staff retention

Staff
retention improves in companies that have performance management systems in
place according to research.

Nearly
one-fifth of the HR professionals questioned by the Industrial Society, report
an improvement in staff retention rates following the introduction of
performance management systems.

Patrick
Burns, policy director at the Industrial Society, said, “If you are part of a
system where you have, say every six months, a discussion with your line
manager about how the job is going, how you are doing in the job, your
aspirations and the organisation’s values then that shows a commitment on the
company’s part, which would make people keener to stay in the organisation.
There is no question that retention is linked to performance management.”

The
report Managing Best Practice: Managing Performance also reveals that
only one-quarter of organisations link pay to the performance of staff and
nearly half do not link performance to customer needs and requirements.

Nine
out of ten senior managers are involved in performance management and almost a
third of employee representatives and union leaders also have an input in
performance management schemes.

The
Industrial Society polled 444 HR professionals.

By
Paul Nelson

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