If you’ve ever been to a big trade show like World at Work Total Rewards…
There’s a recent need for a shift in how we approach performance management.
Recent reports show that 95 percent of managers are dissatisfied with their organization’s performance management system. And 48 percent of employers believe their performance management system needs further work to be effective.
The workplace as we know it is rapidly changing. Annual reviews are becoming a thing of the past. Employees see higher value in receiving more consistent feedback. In fact, Talent Management 360 reports 45% of HR leaders do not think annual performance reviews are an accurate appraisal of employee’s work.
Recent Gallup findings show that when leaders provide daily feedback (versus annual feedback) their employees are:
Six times more likely to agree that the feedback is meaningful.
Six times more likely to agree that they are motivated to do outstanding work.
Three times more likely to be engaged at work.
The rise of innovative performance management software has made it easier for HR professionals to track and measure employee performance. However, having the right performance management strategies in place can be a game changer as to whether or not your program will be successful.
Game Changing Performance Management Best Practices
Set clear, measurable goals- The more specific and actionable you can make your goals, the better. Remember to use the SMART goal model and make sure that your team has a full understanding of what is expected of them.
Provide actionable feedback- When measuring employee performance don’t forget to communicate what specific tasks employees can do to improve their future efforts. Try to keep your comments short and straightforward. Employees will be able to better retain information that’s clear and concise.
Invest in employee growth & development- Offer them some additional training or pair them with a mentor to help them to better achieve their goals. Global Leadership Forecast 2018 found that when managers spend 75 percent of a performance review discussing employee development, there is a stronger outcome in the employee’s future performance.
Utilize your entire team- As a manager, it’s easy to rely on your judgment and perceptions about your team, but it’s best to ask for other opinions as well. Since it’s impossible for you to be everywhere all of the time, asking others for their feedback will help you to keep a non-biased approach. You can also use a social recognition platform as one of the ways to record and keep track of the feedback given by others. A recent report by Deloitte states that there has been a recent rise in employee-driven communication rather than only receiving one-way feedback.
Reward performance- One way to keep your employees motivated in achieving their goals is to recognize them for meeting them. Nothing makes employees feel like you’re more in their court than encouragement and being rewarded for their success. Many companies have performance recognition programs in place to help them track and reward employee performance. Studies show that recognition is more effective in motivating employees than offering a pay raise. Experts suggest companies not tie their raises to the employee’s goals and successes, because it will encourage employees to “game” the system.
The Payoff of Winning at Performance Management
Redesigning your performance management program to keep up with workplace trends has its perks.
In fact, a 2018 Deloitte report showed that 90 percent of the companies that had a redesigned performance management program saw direct improvements in engagement. These companies also reported simpler processes, and 83 percent of them said they even saw the quality of conversations between employees and managers increase.
If you have questions about how performance recognition can help you in your performance management program, we’d love to help