3milesofroadΒ inΒ Β 
Management ConsultantΒ 2 years ago

Does performance management actually work?

Reading the headlines about all the companies "turning up the heat" in one way or another got me thinking... does this actually work? It appears that this method of motivating employees doesn't do much based on study after study. Curious if there are other ways companies incentivize productivity in meaningful ways or if we're all rabbits chasing carrots and getting rewarded with snack boxes and bananas.

3o2jnMOhLwrHuman ResourcesΒ 2 years ago
This is a really great question and one that gets talked about a lot in leadership/culture transformation (usually when execs leave and there are voids left in management). One thing I try to explain to my clients is human capital is exactly that, CAPITAL. How you choose to invest (or not invest) in the team they built directly impacts the bottom line. In study after study, results show that making strategic investments to strengthen the skills of employees greatly improves productivity, workplace satisfaction, and overall company health. Put simply, if a company is trying to be cheap and not spend $30k on training and professional development that could result in 10x that amount in revenue, they probably have other issues they need to resolve (like needing to adopt a growth mindset versus one of scarcity). One reason is that they value (and account for) humans as a cost rather than as capital.