Aligning Employee Performance to Business Outcomes

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  • When performance management programs that emphasize pay-for-performance are effectively designed and managed, they can be a competitive business advantage.

  • The process of creating programs that align employee performance to business outcomes needs to be collaborative with all stakeholders impacted for the solution to be effective.

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Organizations that focus on sustainable performance define good performance by integratingcompany values with expected behaviors for employees to accomplish their goals.
Managers can identify employees who are doing an outstanding job and those doing a poor job. Making distinctions in the middle is difficult.
Individuals, teams, business units, departments, and organizations want to know how well they performed. Most organizations use rating scales as a basis for appraisals, which result in distinct performance ratings for each employee.
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