Pin It

Why Is Employee Performance Management So Important?

Managing the performance of your employees is very important. Ever since the first motivational theories were published, HR managers have been looking at different ways to keep employees motivated and happy in the organization. However, this is much easier said than done. Earlier studies showed that most people were motivated by money. They were motivated to work harder if they were getting paid more. However, subsequent studies showed that other factors, such as social benefits, working conditions and praise for performance also played an important role.

Today, employee performance management plays a much deeper role. It tells the HR manager whether an employee works according to the standards of excellence set by the company. Over the past few years, thousands of employees have been laid off by different companies. Ever since the fall of the economy, recovering companies have only wanted employees who are completely devoted and dedicated to their jobs. That is one of the main reasons why employee performance is now under intense scrutiny. Therefore, using a performance management system is extremely important nowadays. Here are a few reasons why.

Track Performance

You will obviously want to know which employees in the company are performing better than the others, and which employees are lagging far behind.  Tracking employee performance is essential for many reasons. For starters, it will give you an idea about whether an employee deserves a raise or a promotion. It will also make it easy for you to determine whether an employee needs to be let go due to consistently poor performance. Rewards and recognition are essential in any organization. This can only be done if you are able to track the performance of your employees properly.


Surveys, either open or anonymous can help you figure out what your employees are thinking. Be it about each other, about the organization or about their managers and leaders. Building a cohesive environment in the workplace is essential for the long term success of your company.

Analytical Information

Another reason you should implement an employee performance management system in your office is because it will help you gain insight into, and advanced analytical information about, your employees. This can help you plan the development of your employees and track their performance in detail. With the help of Engagedly’s performance management program, you will be able to know more about your employees than you ever did before!