A performance management framework is a structured process for managing and improving performance at an individual, team and organisation level.  It encompasses both formal and informal components and is a systematic approach which involves setting performance goals, measuring progress against those goals, and providing feedback and support to employees to assist in improving performance.


What are the benefits to having a Performance Management Framework?

There are many great benefits to implementing a performance management framework into a business., including the following:

  • It aligns employees with the broader company goals: This ensures everyone in the company is working towards the same goals.
  • It increases productivity: Setting clear goals and expectations, measuring & monitoring progress and providing feedback and support to employees helps set them up for success. This increases employee performance and productivity.
  • It helps identify and address performance issues: Having a systematic process in place, provides a mechanism for identifying and then addressing performance issues early. This helps prevent bigger issues from forming that negatively impact the business.
  • It improves communication: A performance management framework facilitates regular forums for managers and employees to communicate.
  • It assists in developing employees: A structured framework supports the development of employees by identifying any improvement areas and providing ongoing coaching and professional development opportunities.
  • It retains talent: According to Office vibe 82% of employees appreciate positive and negative feedback and 4/10 workers actively disengaged when they get little or no feedback. A performance management framework provides regular feedback and opportunities for development. This subsequently helps retain talent within a business, reducing turnover and associated costs.


What are the key components of a Performance Management Framework?

Generally, a performance management framework would include the following components:

Planning and Goal Setting

This component is all about establishing company goals and objectives and filtering these down into

Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals for teams and employees. The steps would include:

  • Management agreeing on the Company’s goals and objectives for the year.
  • Management agreeing the overall strategy, including the objectives and goals for each team, including targets, actions, behaviours, and specific projects/tasks.
  • Manager meeting with each employee to collaboratively agree on the goals and objectives to be set for the year.
  • Manager setting development goals with each employee. This could link in with a company’s competency framework or skills matrix.



This component is about tracking progress towards goals and evaluating performance using quantitative and qualitative measures. It is also about providing employees feedback about their performance and supporting them in how to improve. This would include:

  1. Frequent management meetings allow for realignment of goals i.e., new goals to be introduced, goals removed etc.
  2. Managers having a quarterly or 6 monthly meeting with employees to discuss the progress of each goal and adjust goals or deadlines if necessary.
  3. Managers holding 1:1 meetings with employees to assess progress, assist with roadblocks and to provide feedback and coaching.
  4. Informal feedback being provided to employees as and when required.
  5. Identifying and addressing performance issues through corrective action, such as coaching, training, or disciplinary action



This component is about conducting a formal performance review that evaluates an employee’s overall performance and provides feedback for improvement. This component includes:

  • Managers meet with employees to review the goals and objectives set. If effective monitoring is undertaken by managers, they will have a good idea of how each employee has progressed against the goals set during the year.
  • Reflecting on the performance of the previous year. This allows employees to speak about their performance during the year and is an opportunity for managers to provide feedback.
  • Discussing future development for employees



This component is about rewarding employees for their performance. Reward serves as a strong motivator to drive employees to meet or exceed goals and performance expectations. This component includes:

  • Ensuring that rewards are memerit-basednd are aligned with the Company’s goals and values and are based on objective measures of performance.
  • Monitoring rewards and processes to ensure that they are an effective motivator for employees and that they are meaningful and valued.


About Employment Innovations

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The information provided in these blog articles is general in nature and is not intended to substitute for professional advice. If you are unsure about how this information applies to your specific situation we recommend you contact Employment Innovations for advice.