Performance management: what is it?

Erin Wiegers

Performance management is the process that ties the organisation’s goals to individual employees. Performance management plays a crucial role in every successful company. Critical success factors and performance indicators are established, which is how strategic goals can be translated to operational level goals. By establishing these factors and indicators beforehand, decisions about rewards and the promotion of individual employees become standardised. At the same time, it encourages employees to learn and to grow.

Human capital

The worldwide economy is becoming more knowledge intensive. It is essential for your employees to have a high level of knowledge and skills to compete in this world. This is called human capital: the knowledge, skills, and competencies of your employees that are relevant to economic activities. You can achieve this through education and training. The level of knowledge among your employees is therefore an important factor in performance management. You can make this factor measurable and insightful through learning analytics.

Succesful learning analytics

Measuring means knowledge. At its basic level, learning analytics is about collecting, analysing, and interpreting data. Just like with other company analyses, it features:

  • Collecting useful data about users and their behaviour
  • Using appropriate methods to analyse the data for trends and results
  • Interpreting and reporting the analysis to users (for behavioural change) or manager (for other actions)

Learning analytics describe what happened in an e-learning course. That seems like a simple question, but without collecting the right data, it is nearly impossible to give a measurable (and trustworthy) answer. You might already have the general feeling that more employees want to make use of your online academy. But how many? And who is involved? What are the results? 


Successfully making use of learning analytics means that you need the right tools and technology. In Hubper’s online academy we pay special attention to learning analytics, so we can offer you insight into your users’ progress for every learning activity. For example, you can see which learning activities are being done, and how far a user has progressed.

Learning analytics before and after a training

You make optimal use of learning analytics as an indicator for performance management by collecting data before and after a training. 


You can do so by collecting training requests from both managers and employees, which is how you can get an insight into where extra knowledge is needed. Within this system you evaluate the courses that have already been followed: has enough knowledge been provided? You get a list of what worked, and what failed to work. This helps you create an effective learning route within your company.


You can also take variables into account that influence the learning results. Think of age, gender, education, etcetera. This information can be used to satisfy individual users’ needs even further.

Performance management after the training

By collecting data about work performances that are tied to the training, you measure the effectiveness of this training. Does a sales training result in more sales? Are there more or less incidents or violations after a safety training? You can also consider analysing your employees satisfaction about the training possibilities in relation to work performance. Are satisfied employees more productive?

 

Collecting and analysing data takes time and can be quite challenging. But it is definitely worth it. Successful training analytics can improve your employees’ performance at work and are an essential part of performance management.