What Is Continuous Performance Management? (With Tips)

It’s that time of year again, when organizations review and evaluate the year gone by both in terms of company performance and individual employee performance. Some organizations treat performance management as an annual exercise to be done as quickly as possible so they can award raises and bonuses and move on.

Continuous performance management (CPM) is an approach to people management that emphasizes regular meaningful interactions over a single annual or bi-annual event. It’s the difference between going to the gym on a (semi) regular basis all year and frantically training for a marathon once a year.

What is Continuous Performance Management? | Kazoo

What are the benefits of continuous performance management?

A continuous performance management style offers many benefits, including:

Improving relationships

The continuous process of giving feedback and constructive criticism throughout the year can help to develop a better workplace relationship between team leaders and their team members. This can lead to stronger relationships in which team members understand their expectations and have the option to ask questions when necessary. Continuous reviews can also improve communication within the workplace.

Increasing employee engagement

Continuous performance reviews also give team members more time to offer their own feedback, which in turn can help the leader develop skills. Employees are more likely to feel engaged or motivated following reviews with managers. With continuous reviews, employees are also more likely to feel like management is listening to their concerns. This can also improve employee retention and reduce turnover rates.

Tracking progress toward goals

Routinely evaluating goals and employees progress toward them can help team members keep their focus on the immediate needs of the business. When reviews only occur once per year, any progress toward goal development can change. Additionally, the needs and goals of the company often change, which can lead to employees working toward goals that are less important.

Giving employees real-time feedback

Continuous performance management can provide employees with real-time feedback, which can help them improve workplace skills. Human resource or managers can provide their team members with feedback on meetings, presentations or projects as they occur, giving them specific things to work on, and then evaluating their progress with later meetings. This also allows employees to receive a quantitative measurement of their performance in certain areas without waiting a full year.

Requiring less time

Annual performance reviews can take a sizable amount of time, as there is a lot to discuss and plan. If a manager has multiple team members, they may spend a few months preparing for reviews. With continuous performance management, meetings are often shorter. Even if a company decides to do an annual performance review in addition to continuous ones, team leaders can focus on more important elements during that review.

Allowing the business to change goals as needed

Competitive business plans often require businesses to adapt their goals and plans to accommodate their customers current needs. By conducting continuous performance management reviews, team leaders have the opportunity to help team members develop the goals and skills most important to the business at that time. This also ensures that all team members are able to align with the companys goals and work together.

Helping leaders identify needs

Continuous performance reviews can also allow managers to identify the current skills available within their team. This gives them the chance to discover any skill gaps and know when they may need to bring on additional team members or implement training programs. It also helps managers identify any skills that may be untapped in current team members, allowing them to provide the resources they may need to develop those skills.

What is continuous performance management?

Continuous performance management is the performance evaluation of employees on a continuous basis throughout the year. In comparison to an annual review, continuous performance management continues to measure employees performance and achievements at regular intervals. This model typically focuses on achieving short-term goals, which is especially beneficial in industries that are rapidly changing.

Some companies refer to continuous performance management as agile performance management. This is because it uses the agile framework, which aims to improve speed and efficiency.

What are the elements of an effective continuous performance management strategy?

Effective continuous performance management strategies typically include the following:

Tips for continuous performance management

Here are some tips that you can use when implementing a continuous performance management system:


What does continuous performance mean?

Definition of continuous performance

: a performance (as of a motion-picture program) that is repeated continuously till closing so customers need not come at the beginning to see a complete showing.

What are the 3 types of performance management?

3 Types Of Organizational Performance Management Systems
  • The Balanced Scorecard. …
  • Management By Objectives. …
  • Budget-driven Business Plans.

What is continuous feedback in performance management?

Cargill Inc

More recently a number of leading, global organisations have implemented continuous performance management, including Deloitte, Microsoft, IBM, Accenture and most famously, General Electric, who had previously pioneered annual appraisals and rankings.

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