Summary
This article discusses effective long-term performance management strategies during crises, focusing on the relationship between cost-cutting measures and maintaining employee motivation and performance. Many companies tend to react swiftly to downturns with job cuts and frozen salaries, which can demoralise the workforce and hinder recovery. Instead of purely managing costs, HR needs to realign performance management to strengthen employee engagement and drive results.
Source: Human Resources Manager
Key Points
- Focusing solely on cost reductions can lead to talent loss and poor performance.
- Clear communication of goals and changes helps maintain employee engagement during restructuring.
- Differentiated goals for various teams encourage better performance rather than a “one-size-fits-all” approach.
- Identifying and retaining key personnel is crucial for maintaining organisational strength in challenging times.
- Regular performance feedback is fundamental, moving away from annual reviews to ongoing check-ins.
- Variable compensation should incentivize contributions to efficiency and innovation in challenging times.
- Empowering leaders with the right tools and training can foster a productive organisational culture during restructures.
Why should I read this?
If you’re in HR or management, this article is a must-read! It sheds light on how to effectively steer performance management amid crisis, highlighting practical strategies to foster engagement and resilience. In today’s turbulent business climate, knowing how to balance cost control with talent retention is essential for any leader’s toolkit. Don’t miss out on these insights that could help transform how your organisation navigates its next tough challenge.
