Reinventing Performance Management
Moving from the traditional once-in-a-year appraisal and shifting towards continuous performance management helps enable employees to achieve their fullest potential. Ongoing feedback, regular check-ins, and recognition moments are what companies need to adopt today.
Performance management needs to be aligned to the world of changing business norms. With teams working remotely or working as per the hybrid model, it’s easy for companies to monitor performances effectively, and track whether their employees are putting in genuine effort. Not to mention the fear of exceedingly long lunch breaks and Netflix binge sessions during remote working.
How Organisations Can Effectively Reinvent Performance Management
The traditional approach is not only outdated but also time-consuming and fails to meet the purpose of increasing development and performance. What is required today is a more customised rather than a one-size-fits all performance management approach. One that is agile and reliable. A system wherein employees feel inspired because they have a chance to use their strengths, thus building a positive employee experience.
The first and most important thing is trust. Once you put your confidence and trust in your employees instead of micromanaging them, they will be more engaged and encouraged to give the desired outcome. A report by SHRM states that one of the root causes of performance management failure is mistrust. It states that mistrust leads to a rigid and tightly controlled process and that only adds complications and no value.
Digital KPI setting tools and project management tools to track output is another way of ensuring that employees are putting their efforts in the right direction. However, it tends to become difficult to track input via these tools. Employee monitoring software like Hubstaff for productivity management to measure employee engagement is growing popular among many organisations.
Having said that, rather than assessing and tracking hours worked or digital activity, through AI companies can harness data into an outcome-driven productivity model, by using data as the basis for analytics to improve effectiveness, business agility, critical business decision-making, etc. This will enable employees to be more flexible and precise with their work arrangements.
Replacing the point grading system with regular team discussions is another way to enhance employee experience. Not only does it help organisations facilitate conversations about the development and growth of their employees, but it also helps them achieve their desired career goals. Discussing and working together with the team on things like setting timelines, expectations, goals and career growth opportunities will build better accountability.
Linking Goals With Employee Abilities Is Important
When referring to setting goals, most organisations fail to consider their employees’ competencies in the context of the goals assigned to them. Competency-based goal setting helps organisations develop organisation-wide competencies. This in turn aids in connecting employee competencies with the organisational goals, enabling the former to achieve their work goals.
Not all employees are comfortable discussing their development and performance with their colleagues. Hence, training them adequately on how to recognise good work as well as receive and give feedback on performance boosts their confidence levels.
With remote working and living in such a chaotic and mentally exhausting environment today, it’s important for organisations to ensure that their teams feel supported. Employees feel isolated and are struggling with the pressure of working remotely. Therefore, measuring metrics of productivity should change to be a little bit more humane in its approach. After all, good business is only possible if the employees thrive!
Major Changes Included In The Process Of Reinventing
These are uniquely challenging times for everyone, and the year calls for continuous reinvention. As per research by McKinsey & Company, most organisations have removed the annual performance ratings and are focusing more on personalised data-driven performance feedback. They also reported that coaching employees on a regular basis with direct feedback benefits organisations as well as enhance employee experience. Training, empowering managers to give constructive feedback and ensuring that they have clarity about their role as managers, was another key learning gathered by them.
In a world of changing business norms, it is important to stay updated with performance management needs. Striving to improve employee engagement and give employees the right tools to perform and develop is the need of the hour. Reinventing the performance management process can inspire and motivate employees to want to give their best at work.