{"id":3678,"date":"2025-07-08T15:56:39","date_gmt":"2025-07-08T15:56:39","guid":{"rendered":"https:\/\/aomtodayprod.wpenginepowered.com\/?p=3678"},"modified":"2025-07-08T15:56:39","modified_gmt":"2025-07-08T15:56:39","slug":"effective-performance-management-helps-with-retention","status":"publish","type":"post","link":"https:\/\/www.aom.org\/today\/effective-performance-management-helps-with-retention\/","title":{"rendered":"Effective Performance Management Helps with Retention"},"content":{"rendered":"

By Daniel Butcher<\/a><\/p>\n

The first step for leaders to improve their organization\u2019s performance management is to define it. The next step is to measure it. Further, leaders must ensure that performance-management processes and procedures, including employee reviews and evaluations, are aligned with organizational goals. If done well, performance management can save the organization money by retaining star performers.<\/p>\n

That\u2019s according to Academy of Management Scholar Herman Aguinis<\/a> of at the George Washington University School of Business and author of Performance Management for Dummies<\/em>, who said that a strong focus on increasing the effectiveness of the organizations\u2019 performance management can not only help them to optimize their talent through targeted skills development and training, but also retain excellent workers.<\/p>\n

\u201cIf you have a good performance-management system in place, then you talk to employees and make an effort to understand them, you know who your top players and star performers are, and you can anticipate that someone might leave and do something about it before they give notice,\u201d Aguinis said.<\/p>\n

Employee turnover is expensive for businesses, with costs ramping up for more senior and high-performing staff members. Costs from employee turnover include recruiting\u2014including advertising, applications, interviews, and onboarding\u2014and training. Administrative costs and lost productivity due to turnover are difficult to calculate exactly, but certainly significant. There are also hidden costs of turnover, for example, culture change, decreased morale and engagement, lost institutional knowledge, potential customer or member dissatisfaction, and even workplace safety problems.<\/p>\n

A possible solution? Improve your performance management, align it with the organization\u2019s strategic objectives, identify your top performers, and adjust your discretionary compensation accordingly, then you\u2019ll reduce employee turnover, Aguinis said.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Daniel Butcher The first step for leaders to improve their organization\u2019s performance management is to define it. The next step is to measure it. Further, leaders must ensure that performance-management processes and procedures, including employee reviews and evaluations, are aligned with organizational goals. 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The next step is to measure it. Further, leaders must ensure that performance-management processes and procedures, including employee reviews and evaluations, are aligned with organizational goals. If done well, performance management can save the organization money by…","_links":{"self":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/3678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/comments?post=3678"}],"version-history":[{"count":0,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/3678\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media\/4009"}],"wp:attachment":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media?parent=3678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/categories?post=3678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/tags?post=3678"},{"taxonomy":"sp_smart_badges","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/sp_smart_badges?post=3678"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/ppma_author?post=3678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}