Role of Performance Management Systems in Employee Development and Retention: An Empirical Study of Experts’ Opinion

Abstract

Systems for performance management are essential for fostering employee growth and retention. These methods assist businesses in setting clear performance standards, providing frequent feedback and coaching, identifying areas for improvement, and coordinating employee goals with the overall corporate plan. Employees' job performance, job satisfaction, and dedication to the company are all improved as a result of the ability to use performance management systems to boost skills, knowledge, and capacities. By fostering a culture of ongoing learning and growth, performance management systems can help with employee retention. Employees are more inclined to stick with the company and help it succeed if it feels that the contributions are acknowledged and recognized. Performance management systems can also assist staff members in achieving the professional goals and enhancing the level of job satisfaction by offering possibilities for growth and development. Performance management tools can also assist businesses in locating high-potential individuals and offering them specialized possibilities for growth. This can help organizations develop a solid talent pipeline for upcoming leadership positions, as well as increase these individuals' retention rates. In general, performance management systems are crucial tools that help businesses foster employee growth and retention and, eventually, accomplish the operational goals.