Future of Performance Management

03/07/2021 0 By indiafreenotes

Big companies are making changes. Soon smaller companies will follow suit. Patterns are beginning to emerge:

  • The nature of some companies is such that their objectives can change quite rapidly. Such companies cannot measure their employees’ performance against annual objectives.
  • Big companies are testing new ideas that give employees constant feedback and coaching.
  • Companies are collecting more objective performance data through systems that automate real-time analyses.
  • Better data is bringing about a shift in emphasis from reflective evaluations to fact-based performance and development discussions, which are becoming frequent and as-needed rather than annual events.

Research and surveys show that there’s no need to reinvent the wheel when it comes to new performance management systems. The key is to conduct performance reviews in such a way that they improve individual and team performance in alignment with organizational objectives and priorities, and the employee experience and business outcomes.

Coaching Employees, and Managers too

Giving feedback is a crucial part of the performance appraisal process. However, this feedback is of no use if employees don’t know what to do with the feedback, what to do with the feedback to improve. Managers need development to show their team how to get work done well. While this is beneficial to the employees, it’s also beneficial for managers who are evaluated on their ability to engage their teams.

Integrate technology in the performance appraisal process

Organizations that integrate performance tools into the real workflow are much more likely to see positive results from the process.

Clearly defined criteria for compensation

It can be very demotivating when an employee feels that their pay is unfair and does not match with their contribution or achievement. Therefore, it’s very important to have a compensation plan in place that is transparent, clearly-defined, and easy to understand. This plan must be clearly established with everyone in the organization so that there is no ambiguity in what to expect.

Set flexible goals

Instead of having a top-down approach in setting SMART goals set annually, set flexible goals that allow format and timing to be tailored to the work.

Team performance vs. Individual performance

Organizations are not about individual performance anymore. As human beings, it’s hard for us to function alone. How an employee performs within a team and within an organization is what defines success. Organizations that focus on team or project objectives perform far better than those that focus on individuals.

Different criteria for different decisions

Use different criteria for different decisions to ensure ratings are fair, instead of using performance ratings as the basis of all talent decisions, compensation and promotion. Calibration sessions can be conducted to ensure ratings are fair.