Performance management has been a popular topic of discussion within organisations recently, with 96% of surveyed organisations having recently changed or planning to change their system within the next 12 – 18 months. As companies struggle with leadership, engagement, and capability challenges, they are realizing that the performance management process affects all of these challenges.
Many employees and managers are feeling dissatisfied and frustrated with the current performance management systems. However instead of completely over hauling current systems, the way to change will most likely require organisations to evolve the practices they already have in place.
New performance management models are now becoming imperative as businesses update and improve their talent solutions. Companies leading this transformation are redefining the way they set goals and evaluate performance, focusing heavily on coaching and feedback and looking for new technologies to make performance management easier.
Some essential changes are needed but some of the original elements should remain the same.
Here are a few things to keep in mind when changing your performance management strategies:
- Performance management is changing, not disappearing with the focus shifting from annual assessments to more continuous dialogue. The performance information gathered will be more constant and more relatable to what employees are doing at that moment instead of reviewing what they did six months to a year ago.
- Corporate culture and values are to become more closely aligned, with employers encouraged to enabling employees to do their best instead of “fixing” their performance.
- Different techniques for different areas of the workforce. Different jobs require different performance management criteria and systems.
- Disposing of the performance rating. Rating your employees is not helpful or productive. If ratings are not eliminated completely, they should at least be simplified into broader categories.
- Separate performance from rewards. Fixed approached based on performance ratings are dubious, especially when objectives are conditional or achieved through team collaboration. Assessing someone’s skills produces inconsistent data.
- Continuous feedback - the regularity, emphasis and quality of communication will change to enable more real time conversations about how the employee is going.
- Mobile technology should enable more immediate and personalised feedback.
- Managers need training to become leaders. Manages who have received development to become better mentors and coaches will focus conversations on capabilities and performance than faults or issues.
- Simplicity is the key. Much of the current performance management processes involve filling out paperwork, evaluating job rankings and developing unrealistic goals. The information that was gathered had little practical application for managers or team leaders.
