The Latest Performance Management Trend—Will it Incentivise?

There is a new employee performance management framework taking root in some forward-looking organizations that proposes to link goals, rather than ratings distribution, to rewards. The result is a program that people believe is fair, is easy to understand and execute, and improves the HR function.

Six key elements of the framework include:

1. Understand and articulate the company’s purpose for performance management;
2. Set simple, measureable objectives;
3. Link objectives to reward outcomes;
4. Provide the tools, support and freedom to achieve set goals;
5. Regularly monitor and measure progress; and
6. Link to other HR programs.