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The performance management processes of planning, monitoring, developing, and rewarding performance surface time and again as critical factors for success. For example, in the 1998-1999 Hay Employee Attitudes Study, "Competing for Talent: Creating A Work Climate to Attract, Motivate and Retain High Performing Employees," the Hay Group compares two groups of employees – those committed to the organization and those planning to leave. Many of the critical factors affecting employee retention relate to the quality of performance management. These include:
In another study of 100,000 employees of 2,500 organizations, the Gallup Organization pinpointed employee attitudes that are present in highly productive work groups and that relate directly to the rate of employee turnover, customer satisfaction, and productivity. Many of these attitudes reflect effective performance management practices. Employees in such work groups report high levels of agreement with the following statements:
As if these findings weren't enough to clearly show performance management as a critical process for organizational success, additional supporting data comes from the nationwide survey "Attracting and Retaining High-Technology Talent," co-sponsored by William M. Mercer, Inc. and the Pittsburgh High Technology Council. This report highlights best tactics for retaining experienced employees. Several of these tactics relate to effective performance management, including:
The results of these surveys show that effective performance management is critical to retaining good employees and achieving a productive work environment. To ensure that performance management is implemented effectively in your organization:
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