Performance management is changing with the evolving workforces, work structures, and new technologies. If organizations are committed to developing their talent, then adapting to the current world of work is imperative.
Here are some of the biggest trends in performance management so you can stay up to date with current performance management strategies.
1) Continuous performance management
Annual performance reviews often fail to accurately reflect employee performance. 51% of employees say these annual reviews are inaccurate and 90% find them uncomfortable and ineffective. Because of this, many companies are moving away from annual reviews. A study by Deloitte found that 76% of organizations surveyed are changing their performance management systems to be more ongoing to meet employee needs. This includes using real-time, continuous feedback. Additionally, using continuous
Ongoing feedback supports employee growth and speeds up skill development. It also boosts communication and trust between managers and their team members. Although transitioning to continuous performance management takes time and training, moving away from annual reviews to regular feedback will enhance the chances of employees succeeding, which in turn benefits the organization. In fact, among the companies that adopted continuous performance management, 50% reported greater satisfaction with their performance management systems and managed to outperform their competitors by 24%.
Not only is increased success and productivity a benefit of implementing continuous performance management, but there is also an increase in employee engagement, retention, and happiness. A study done by Betterworks claimed that 66% of companies who prioritize continuous performance management can boost employee productivity all year long, compared to just 35% of those who don’t.
2) People analytics is no longer a want, it is a need
84% of HR leaders surveyed from Deloitte claimed that people analytics is imperative. Having employee performance data allows for more educated decisions to be made about your talent. Without data, making strategic people decisions can be challenging. Organizations need to be able to develop their people. This is particularly true in professional service firms where your people’s services are what you are selling. People analytics can provide professional services insight into their employee’s strengths, weaknesses, and well-being, so better talent and training decisions can be made.
3) Transparency in leadership
A growing trend in performance management is transparency in leadership, and it is becoming one of the most sought-after traits that employees are looking for in an organization. In fact, 52% of Gen Z’s and Gen Y’s state that the most important quality for being a good leader is honesty and transparency. For leaders in the workplace, transparency means communicating less over email and through third-party communication. Leaders needs to show up and become more personally engaged with their employees via face-to-face and/or video interaction and with greater frequency. Moreover, leaders should keep their employees in the loop with good and bad news (without oversharing) and welcome honest feedback will help build trust in within teams.
4) Emphasis on employee experience
Employee experience have been a buzzword in the HR community. Employee experience is the journey an employee takes with your organization. It includes every interaction that happens along the employee life cycle – from the initial interview process to off-boarding. 83% of HR managers believe that employee experience is key to organizational success. In fact, developing a great employee experience can lead to staff feeling happier, more productive, and motivated. Creating a better employee experience comes down to two key factors: leadership and workplace practices.
Conclusion
While many organizations may find it a challenge to adjust to change, these new trends taking place in performance management are helping many organizations operate in new ways. All organizations should ensure they are staying up with the latent trends as it can have a direct affect on their success!
This article originated from Pavestep.com.