Employee Performance Management: Benefits and Tips to Improve It Effectively

Employee performance management has evolved beyond annual appraisals into a continuous, data-driven approach. Managing employee performance today focuses on real-time feedback, goal alignment, and team collaboration rather than outdated individual assessments.

A McKinsey study highlights the shift from individual-centric performance management to a team-based model, reinforcing the need for organizations to rethink their strategies. Businesses adopting this approach see improved engagement, efficiency, and overall productivity.

To truly understand how to improve employee performance, exploring its benefits, practical implementation strategies, and direct impact on business success is essential.

Let’s get started.

Apa yang dimaksud dengan manajemen kinerja karyawan?

Employee performance management is not just about measuring and improving the performance of the employees. It is also about aligning individual objectives with the organization's and vice versa.

The performance management process is continuous rather than an annual review. The goal of performance management focuses on building your employees' ability to perform their work better. Skills improvement and professional development are both essential parts of performance management.

Namun, manajemen kinerja juga merupakan jalan dua arah. Anda perlu mengukur apakah seorang karyawan cocok dengan pekerjaannya dan apakah pekerjaan tersebut memanfaatkan keahlian karyawan secara maksimal. Dengan kata lain, hal ini melibatkan penyelarasan tugas dan keterampilan seseorang dengan tujuan tim dan organisasi karyawan.

Benefits of employee performance management

Pakar manajemen Peter Drucker pernah berkata dengan terkenal,"Apa yang diukur, itulah yang dikelola." Di zaman di mana perusahaan melihat kinerja lebih dari sekadar pendapatan yang dihasilkan oleh karyawannya, pepatah ini masih relevan.

Anda tidak dapat mengelola sesuatu yang tidak Anda ketahui. Mengukur kinerja karyawan adalah langkah pertama dalam mengelola dan pada akhirnya meningkatkannya.

Why should your company measure employee performance in the first place? One recent study published by Capgemini argues that employee performance, including productivity and engagement, is closely linked to the employee experience. In other words, high-performing employees and teams work in a high-performance workplace and vice-versa.

Menerapkan sistem manajemen kinerja karyawan akan menguntungkan organisasi Anda dengan cara-cara berikut:

1. Memberikan kesempatan untuk pertumbuhan dan perkembangan staf

Sebagai seorang manajer, Anda dapat memengaruhi kinerja organisasi Anda dengan memperhatikan kinerja orang-orang yang bekerja dengan Anda.

However, you must implement an employee performance management system to record and compare your observations to specific growth and development targets. Otherwise, you'll just be making uninformed guesses.

By using an employee performance management system, you'll have all the data you need to identify improvement opportunities and predict your employees' career trajectory.

For example, suppose an employee does poorly in numerical tasks but has excellent communication skills. In that case, you can either train them in numbers or steer them towards a career path that can maximize their strengths.

2. Menyelaraskan sasaran dengan lebih akurat

Before setting your goals, you must assess your team's skills, availability, and performance. By measuring and managing employee performance, you better understand your team's ability to accomplish goals. As a result, you can either adjust your goals to account for your team's strengths and weaknesses or hire additional resources to help you reach your targets.

The first step in employee management is recruiting or assigning the right person for the job. It is, therefore, essential to have a holistic approach leveraging business acumen for an effective role assignment process.

Once that is done, you should set performance goals with your new employee with the organization's larger goals in mind. This might not seem easy if the employee works remotely. Still, with constant check-ins and alignment sessions, they will understand how you will monitor their performance for the remainder of the assessment period.

3. Dapatkan pemahaman yang lebih baik tentang kinerja bisnis Anda

Orang-orang membentuk organisasi, dan kinerja kolektif merekalah yang mendorong pertumbuhan. Oleh karena itu, mudah untuk memahami mengapa Anda perlu mengukur kinerja individu untuk memahami kinerja organisasi dengan lebih baik.

Hal ini terutama berlaku untuk bisnis kecil, di mana hasil kerja dari beberapa karyawan dapat membuat perbedaan antara menghasilkan laba atau beroperasi dengan defisit. Melakukan penilaian karyawan dapat membantu Anda mengidentifikasi karyawan dengan kinerja terbaik dan karyawan yang perlu ditingkatkan.

Hal ini juga dapat membantu Anda mengidentifikasi kesenjangan pengetahuan yang menyebabkan bisnis Anda berkinerja di bawah ekspektasi dan kemampuan karyawan yang dapat Anda manfaatkan di masa depan.

4. Menyempurnakan kebijakan bisnis Anda

To build a company culture that attracts and retains great employees, you must combine your employee performance appraisal data with the employee experience. You can collect this at different touchpoints in the employee lifecycle. These points include periodic employee satisfaction surveys and exit interviews.

Ketika Anda menganalisis data pengalaman karyawan dalam konteks kinerja karyawan, Anda dapat memiliki pandangan yang lebih jelas tentang pengaruh satu sama lain.

For instance, if an employee says they wish they could have worked remotely more often in their exit interview, you can determine the lack of remote working options and suboptimal performance.

You can also make your analysis as granular as possible to identify previously unknown factors that affect employee performance. For example, a study published by the University of Oxford discovered that more windows (and natural light) in the workplace had a positive effect on sales and efficiency.

Anda kemudian dapat menggunakan wawasan ini untuk membangun budaya tempat kerja yang mendorong karyawan untuk berkinerja lebih baik sambil menjaga keseimbangan kehidupan kerja yang sehat.

5. Membangun budaya pengakuan yang adil

Using employee performance reviews, you can establish a culture of fair recognition in your organization. On the one hand, by identifying top performers and rewarding them, you show your workforce that you appreciate and recognize hard work. It is crucial to do this, as employee recognition is the number one factor driving employee engagement and productivity.

Di sisi lain, karyawan yang kurang dalam kinerjanya akan membutuhkan manajemen yang lebih dekat. Mengidentifikasi karyawan yang berkinerja buruk tepat waktu adalah hal yang penting agar Anda dapat membuat rencana pengembangan untuk meningkatkan keterampilan mereka dan mengurangi kesalahan.

Jika hal tersebut tidak berhasil, Anda harus memutuskan dan mengkomunikasikan konsekuensinya kepada tenaga kerja agar mereka dapat bekerja sama dengan baik. Kehilangan salah satu dari kedua hal ini dapat berdampak besar pada bisnis Anda.

How do you manage and improve employee performance effectively?

Good performance management entails more than just building a productive workplace. Understanding how to improve employee performance requires leadership, strong social skills, the ability to give constructive feedback, and teamwork—all essential for an effective performance management strategy.

1. Tetapkan tujuan dan sasaran yang jelas

Tanpa tujuan yang jelas, Anda dan tim Anda tidak akan memiliki gambaran tentang kemajuan Anda dan seberapa banyak hal yang harus Anda capai. Sebagian besar ahli manajemen percaya pada beberapa prinsip dasar penetapan tujuan:

Prinsip-prinsip ini memberikan para pemimpin ide yang baik tentang tujuan yang perlu mereka tetapkan untuk diri mereka sendiri dan tim mereka.

Anda juga dapat menggunakan kriteria SMART saat menentukan tujuan tim:

• Specific: What are you looking to accomplish, and what are the steps to it?
• Measurable: What are the key performance indicators of the goal?
• Achievable: Is this goal based upon realistic metrics? Is the employee equipped enough to achieve it?
• Relevant: Does it fit well in the employee's overall work profile and company priorities?
• Time-based: What are the deadlines for each goal?

Berikut ini adalah contoh papan sasaran SMART dari Hubspot -

Penetapan tujuan sangat penting untuk mengelola kinerja karyawan dalam tim mana pun, tetapi bahkan lebih penting lagi untuk tim jarak jauh. Tim jarak jauh mungkin akan merasa tersesat jika mereka tidak diberi arahan yang jelas mengenai tujuan dan sasaran perusahaan, karena mereka tidak berkomunikasi dengan tim inti setiap hari.

The goals you set for your employees will depend on their line of work. For example, if you employ graphic designers, you can gauge their work's quality and adherence to branding guidelines. If you manage a data analysis team, you can use data quality metrics as your basis for performance management.

2. Gunakan perangkat lunak untuk manajemen kinerja

You need a way to track progress efficiently, and ideally, the information you are gathering should be accessible to everyone. Using Google Sheets or Microsoft Excel is not uncommon for employee management, but dedicated performance management software will make things easier and more streamlined for you.

Real-time management: Some tools may offer the capability to monitor your team's performance in real-time, often through features like time tracking or integration with time tracking apps. It allows you to gain immediate insights into your team's productivity, project status, and individual contributions.

Berikut adalah beberapa faktor yang perlu dipertimbangkan ketika memilih perangkat lunak manajemen kinerja karyawan:

💸 Cost: Enterprise-level software, such as SuccessFactors or Workday, might be out of your budget. You can use performance management software targeted towards small businesses instead.

🔗 Features and integrations: Most employee performance management software have some level of integration with other HR-related systems, including payroll and employee recognition solutions. These integrations will streamline the experience for your employees and the HR team.

🔧 Ease of use and training: Performance management software has many moving parts, and getting lost in all the features is quite easy. Aim for simplicity when you're looking for a system for your team.

Sebagian besar perangkat lunak untuk manajemen kinerja karyawan memiliki pendekatan yang fleksibel dan dapat membangun dasbor sesuai kebutuhan spesifik Anda. Anda dapat mencoba demo untuk memilih produk yang tepat.

3. Memberikan umpan balik kinerja secara teratur

Providing relevant and regular feedback 📝 is an essential element of performance management. It can take many forms:

• Managers give feedback to employees as part of a performance review.
• Karyawan memberikan umpan balik kepada manajer mereka.
• Menerapkan umpan balik antar rekan kerja.

Anda mungkin bertanya-tanya seberapa sering Anda harus memberikan umpan balik.

Namun, jenis umpan balik yang dianggap berarti oleh generasi milenial tidak sesuai dengan kategori yang ditemukan dalam sesi penilaian berkala pada umumnya. Sebaliknya, diskusi harus berfokus pada pengakuan, arah karier, dan emosi karyawan, terutama di masa-masa ketidakpastian seperti pandemi global.

Also, how you give feedback can change the results to a large extent. For example:

• Alih-alih mengatakan sesuatu tidak berhasil, jelaskan alasannya dan tempatkan dalam konteks bisnis yang lebih besar.
• Alih-alih mengatakan "kerja bagus", katakanlah apa yang berhasil.
• Daripada memikirkan apa yang salah, ajaklah karyawan untuk mendiskusikan apa yang bisa mereka lakukan dengan lebih baik di masa depan.

Instead of talking like a boss, talk like a team member and avoid adverse and judgmental phrasing. Good performance management software comes in handy in managing feedback effectively.

4. Provide them with adequate work equipment

Providing the right resources boosts workplace efficiency and overall performance. Adequate work conditions also play a crucial role—office setup influences behavior, productivity, and morale.

Lack of proper equipment affects performance and compromises safety. Cutting corners on essential tools can lower morale and increase turnover. In physically demanding roles, quality equipment reduces injury risks, reinforcing ethical employer practices.

Some tools enhance efficiency, while others minimize time spent on repetitive tasks. Proper hardware and licensed software are essentials. For teams needing seamless communication, reliable tools improve workflow—meanwhile, employees handling written content benefit from supportive service providers.

5. Identify emotional vampires

Some people simply draw the life force from everyone in their vicinity. They’re not directly impacting productivity by underperforming or sabotaging the rest of your team, but they might undermine the office’s morale daily. It is necessary to provide a healthy work environment.

Penelitian bahkan menunjukkan bahwa individu-individu ini memiliki dampak yang jauh lebih besar terhadap rekan kerja mereka daripada yang diasumsikan sebelumnya.

The problem in spotting these individuals may lay in two things.

• Karyawan Anda mungkin enggan menjelek-jelekkan rekan kerja mereka (meskipun mereka tidak suka bekerja dengan mereka).
• They aren’t necessarily underperforming or performing poorly in your employ.

Jadi, pastikan Anda mengembangkan sistem umpan balik yang efisien dan memiliki tingkat kepercayaan yang tinggi terhadap karyawan Anda sehingga mereka akan merasa nyaman untuk menceritakan hal-hal tersebut kepada Anda.

Setelah Anda mengidentifikasi vampir emosional, Anda dapat melakukan dua hal.

• Pecat mereka agar mereka tidak merusak produktivitas seluruh staf Anda.
• Tawarkan mereka kesempatan untuk bekerja dari rumah atau tempatkan mereka pada posisi yang memungkinkan mereka untuk sesedikit mungkin berinteraksi dengan anggota tim Anda yang lain.

The first option is much more reliable because an emotional vampire can still substantially damage office morale, even in the virtual environment.

6. Show your team that you care about them

Many entrepreneurs assume the customer-is-always-right principle applies universally, but that’s not always true. If a customer is rude or unreasonable, they may not be worth the effort to retain. Trying too hard to keep them can drain resources and demoralize your team—a concept known as customer bullying. Prioritizing toxic customers over employees can hurt productivity and morale.

One of the best ways to show employees they matter is by making time for them. While your team is small, regular one-on-one meetings can be invaluable. These sessions help you align on priorities, address concerns, and reinforce that their contributions are valued.

Author Elizabeth Grace Saunders highlights that personal attention from leadership fosters loyalty and engagement like nothing else. Simple actions—asking about project progress, remembering personal details, or supporting team collaboration—go a long way. Leadership is more than managing tasks; it’s about building relationships that drive success.

7. An adequate reward for an adequate effort

It is only natural that people are more interested in what they can do for them than what they can do for you, which is why you need to start considering the intrinsic motives of your team.

First, people care about their finances, which is why the promise of a raise is compelling. Second, those who are more career-oriented may focus on the ability to rise in the ranks, which is why some room for vertical movement may also work.

Meskipun dua hal di atas mungkin bagus untuk motivasi jangka pendek seseorang, motivasi jangka pendek staf Anda dalam sebuah proyek juga bisa menjadi hal yang patut dipertimbangkan. Untuk inilah bonus ada.

Hal ini sangat efektif ketika tim Anda baru saja menyelesaikan sebuah proyek besar, dan Anda mengharapkan mereka untuk memulai proyek lain setelah proyek tersebut selesai. Dengan memberikan bonus kepada mereka, Anda akan mengingatkan mereka mengapa mereka bekerja ekstra keras untuk memberikan hasil kepada Anda. Di sisi lain, beberapa penelitian menyatakan sebaliknya.

8. Invest in employee development

More competent employees equal a more productive workforce. To ensure your team is always ready to tackle any challenge and keep up with the innovations in the industry, investing in employee learning and development is the best course of action.

Meskipun ini tampak seperti solusi yang mahal bagi sebagian pemilik bisnis, ini adalah praktik yang pasti akan membantu perusahaan Anda maju.

Courses, seminars, workshops, and mentoring programs will help your employees grow professionally, making them more skilled, efficient, and productive in the workplace.

9. Motivate using incentives

Incentives are a great way to reward the most productive employees for well-done jobs, and they show the whole team you value their hard work and contributions.

Incentives can include various benefits, from paid time off, bonuses, and raises to organizing team-building activities where your staff can relax and get to know each other better.

10. Organize regular performance reviews

Menjadwalkan evaluasi karyawan secara teratur memberikan kesempatan berharga bagi manajemen untuk memberikan umpan balik individual bagi setiap anggota tim.

However, these meetings are also helpful in finding out what troubles your employees, what they might miss in the workplace, and what would make them more motivated and driven to fully commit to their everyday tasks

11. Stay in the loop and communicate openly with your team

Boosting employee engagement and performance is a process that requires long-term dedication and attentiveness.

To make sure your employees understand their assignments and do their best to accomplish them in the most effective and timely manner, stay in the loop and openly communicate with your team.

12. Pembangunan tim dan komunitas

Hal lain yang perlu Anda ingat adalah bahwa loyalitas adalah motivator yang efektif, bahkan jika bukan hanya Anda yang loyal kepada anggota tim Anda.

Remember that working on a project with people they hold in high esteem might place your employees in a position where they feel the pressure to work extra hard not to let their team members down.

In this particular case, validation of their peers means more than any kind of positive feedback on your side. This is a benefit of being in a harmonious and well-composed team.

Di sisi lain, untuk mencapai hal ini, dibutuhkan banyak usaha dari Anda.

• Ini mengharuskan Anda untuk memberikan tim Anda beberapa aktivitas dan kesempatan membangun tim.
• It requires you to allow your staff to mingle outside of work. We’re talking about field trips, corporate parties, and other opportunities for them to get to know each other in a bit more relaxed environment.
• Yang paling penting, Anda harus membuat kantor Anda menjadi lingkungan yang mudah dan memungkinkan untuk menjalin pertemanan.

Berada di bawah tekanan terus-menerus dan merasa diawasi akan membunuh suasana di kantor. Pastikan anggota tim Anda merasa nyaman di kantor, dan persatuan tim akan meroket dalam waktu singkat.

Hal terakhir yang perlu Anda fokuskan adalah menghargai kerja sama tim dan bukannya usaha individu. Menikam dari belakang dan meremehkan rekan kerja karena persaingan hanya akan terjadi jika Anda menciptakan lingkungan yang mendukung praktik-praktik ini.

Angka-angka di sini cukup mengejutkan, mengingat 29% mengatakan bahwa ada seseorang di tempat kerja mereka yang membuat hidup mereka seperti di neraka, dan 14% menyatakan bahwa ada lebih dari satu orang yang membuat hidup mereka menderita.

Lebih buruk lagi, hal ini memulai lingkaran setan, mengingat sekitar 31% dari subjek tes ingin membalas dendam kepada seseorang yang telah menyakiti mereka, sehingga memperparah keadaan.

You'll create a team-friendly environment by rewarding teamwork instead of praising only the staff members who are constantly there for others.

Remember that you can expect your employees to continuously act like this if you endorse backstabbing behavior in your office. In other words, you can’t expect to reward such behavior and then act surprised once it takes over your office.

How to improve employee performance with Empuls

Good performance management entails more than just building a productive workplace. Establishing an effective employee performance management strategy requires leadership, strong social skills, the ability to give constructive feedback, and teamwork. Empuls enhances this process by providing tools that foster meaningful reviews and continuous improvement.

✔ Gather comprehensive feedback: Use Empuls' 360° feedback surveys to collect insights from managers, peers, and subordinates, ensuring well-rounded performance evaluations.

✔ Leverage data-driven insights: Empuls' HR People Analytics offers real-time performance data, helping leaders make informed decisions and drive employee growth.

✔ Monitor engagement levels: Keep a pulse on employee sentiment with real-time surveys, allowing proactive support to maintain high performance and morale.

A structured, insightful review process improves employee performance and fosters long-term success. Empuls helps organizations build a culture of feedback, growth, and continuous development.

Penutup

It is clear now that the benefits of measuring and managing employee performance take care of more things than one can imagine. The entire work environment is uplifted from employee development, improved relationships between managers and employees, synergy between teams, hitting targets, and beyond.

So, if you are wondering how to manage employee performance effectively, you can now start building a robust process and make it as continuous as it is supposed to be.