What is Performance Management?

This resource was developed by Bright + Early.

At its core, performance management is a system for making sure your team knows:

• What is expected of them
• How they are doing against those expectations
• How they can grow and develop at work
• How their work connects to the organization’s overall goals and mission

A strong performance management system usually includes:

1. Clear expectations for every role, documented in job descriptions, job levels, competencies, and career ladders.
2. Accessible and well-communicated resources that are easy to access and explained often, especially for new hires.
3. A process for evaluating performance, most commonly as annual or semi-annual performance reviews.
4. Professional development support, that helps people work on skill gaps, stretch into future roles, or dive further into areas they are passionate about.
5. Continuous feedback and coaching, so adjustments and growth can happen ongoing (and not just at review time).
6. Recognition and rewards, through praise, compensation, growth opportunities, and both intrinsic (pride, mastery, belonging) and extrinsic (bonuses, promotions) motivators.

Bright + Early is a friendly and forward-thinking HR consultancy providing embedded HR support as well as custom policy work, people programs, and compensation consulting for nonprofits and other values-driven organizations. If you’re looking to build your own career frameworks and performance management systems, they can help.