Companies are definitely rethinking performance management.
They’ve realised that annual appraisal reckoning is helpful for compensation and bonus computations.
But, their biggest question is does it engage, motivate and develop employees — which has become the new norm of performance management.
Legacy companies with the traditional hierarchical structure as well as modern, hi-tech companies with flat structure are both moving away from the “once a year report card” format of employee appraisal.
It is not a fad or mad rush! It arises out of changing employee demography and priorities.
Employees want to be coached at work, they want to have career discussion more frequently, they want to know what is expected from them and don’t want to wait for a year to know whether they have done it right or not.
It’s no wonder 62 per cent of employees feel blindsided by the sit-down annual reviews.
What comprises the continuous performance management process?
We can safely say it starts with the onboarding process and capturing employees’ skills, work history and career aspirations.
What better ways to kick start a holistic process than ascribing employees to transparent goals?
In the multi-tasking, resource sharing and matrix reporting milieu, goals are ever-changing, dynamic and achievements need to be updated instantly to track the progress.
By setting quarterly goals instead of annual you can get 30-35 per cent higher results.
Working for different goals under different managers in a different geography, employees and managers prefer continuous conversation and check-ins.
These continuous feedback loops help them share the progress, obstacles and corrective measures needed and ensure the team is always on track.
It also increases the synergy between managers and employees; employees trust their managers more and managers can better understand employees’ capability.
Continuous feedback can be doubled up and used as an organisation-wide social wall to share your instant appreciation and gratitude to your beloved colleagues.
What the universal success of social media implies?
Endorsement and recognition matter most to us.
Organisations can do well if they take a leaf out of social media and create an opportunity where their achievement and efforts get publicly endorsed and recognized.
Praise their efforts and amplify it through the digital wall. Instant virtual awards and recognition improve employee motivation and engagement.
Besides the informal touch point through continuous feedback, you can have monthly and quarterly performance reviews to get the people into the groove.
A quarterly self-rating and managers’ feedback help to change your employees’ course of action and behaviour for better. And, no more year-end surprises to endure!
A whopping 85 per cent of employees need frequent feedback from employees to boost their confidence.
Managers can then identify high-potential employees (HiPo) from their performance, potential and criticality scores.
The crucial aspect here is making formal and informal touch points such as continuous feedback and quarterly performance reviews as part of managers and employees’ work life.
Once it becomes a muscle memory there is no looking back for your organisation.
Futureproof your talent management
The future is heading towards continuous employee performance management.
Technology makes your transition from “conduct & forget” annual appraisals to “continuous performance management” smooth and insightful.
There is no end to the business intelligence you can gather from the repository of performance-related data and conversation.
Some of the benefits include:
- Instant and impactful feedback keeps employees focused on the goals, course correct their actions proactively and keeps the organisation agile and productive.
- Appreciation and recognition motivates and engages employees thus boosting employee retention.
- Skill gaps are identified and plugged through reskilling programs which enable you to achieve employee development and business growth.
- A huge cache of performance data to analyse and make the right talent management decisions.
- Last but not least digitalisation eliminates paper trails, reduces HR overheads and time lapses.
While investing in HR technology, it is wise to look for tools that have:
- A powerful all-in-one visual dashboard that enables point-and-click operations.
- In-depth performance management capabilities such as matrix goals management, 360-degree feedback, core values rating, employee engagement survey and features driving employee engagement.
- Categorized continuous feedback structure such as appreciation, mentoring, performance conversation on goals providing greater context and opportunities for clear follow-up conversations.
- Reference to continuous conversations on goals while conducting performance appraisals.
Build a culture of trust and development in your organisation with HR technology. Make your performance management continuous, holistic and productive.
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