Using Continuous Performance Management in Your Company

Woman presenting on Continuous Performance Management

Part 1

The traditional practice of yearly employee performance reviews is becoming taboo. It’s time to move away from annual performance appraisals. It’s time to move into a continuous performance management process. We think you’ll agree as you read on.

What is CPM?

CPM is Continuous performance management. CPM is is a Human Resource tool that racks and evaluates employees. C to improve individual performance. Managers review employees continuously, rather than once a year. CPM includes agile management, and constant feedback, also known as check-ins. By setting standards and expectations for performance, it helps guide employees to meet their goals in a designated amount of time.

In a true CPM culture, employees give real-time feedback whether it’s instructive, celebratory, or constructive. In doing so, improved communication strengthens relationships between mentors, team leaders, managers, supervisors, and employees.

What does an effective performance management organization look like?

Organizations that foster this model have a foundation of trust and gratitude generated through a comprehensive employee recognition program. Without the positive reinforcement that a recognition program brings, employee growth may wane. Employee recognition is critical when it comes to constructive feedback. Trust increases as the relationship between employee to employee and employee to manager strengthen. Rather than creating anxiety, getting called into the boss’ office will be a positive experience.

An organization that has effective performance management has processes in place that include short-term objectives, goal setting, and regular check-ins.

Are yearly performance evaluations coming to an end?

Yes! A study found that 95% of managers aren’t satisfied with annual appraisals. And 75% of employees think yearly appraisals are basically unfair. Now is a great time to transition. Employees that feel empowered will meet their goals on time and within budget. With CPM in place, employees enjoy continuous dialogue, while strengthening the relationships within an organization and giving employees autonomy. The modern millennial thrives in this capacity.

What companies are currently using this model?

  • Adobe was the first to do so in 2012. As a result, voluntary turnover has decreased 30% since.
  • Cargill, a U.S. food producer, and distributor also use it. 70% of their employees now feel valued because of ongoing chats with their manager.
  • Deloitte
  • Microsoft
  • IBM
  • GE
  • And many more…


CPM has been thoroughly studied. Over half of companies that review monthly goals are in the top quartile for financial performance. Only 24% of companies doing annual reviews made it into this bracket. Companies that have quarterly meetings have a 30% higher return than those that do them annually.

Frequent feedback is called the ​killer app because there is a 39% boost in performance in companies that do it. Eventually, employees are engaged three times more with CPM according to a Gallup poll. 

Next month we will continue our discussion on continuous performance management. We’ll be covering:

  • What’s holding companies back from moving forward
  • Start CPM with our how-to guide
  • Overcoming obstacles
  • Whether yearly performance appraisals are still useful

For all your staffing needs, contact Career Start.

Posted on January 10, 2022. Categorized as .

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