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Advanced performance management focuses on performance planning, tracking, assessment, coaching and feedback. While it continues to inform career development and compensation processes, it is separated so that it meets its stated purpose. Separating it also causes employees to view it as a positive contribution to their work lives rather than a stress-inducing discussion of why they did not get a bigger raise or why they will not be promoted this year.
Creating a separation between the performance management process and both compensation and development processes, starts with a communications strategy. Functionally speaking, all performance management process descriptions (including purpose, philosophy, process maps, systems capabilities, etc.) should reference its role in guiding employee performance and behavior in alignment with corporate goals. However, when redesigning or upgrading the process, any mentions about the performance management process directly feeding compensation decisions or using overall performance ratings as the sole determinant of pay increases should be minimized.