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Odds are, if you worked in corporate America over the past several decades, you’ve experienced a traditional performance management cycle. Most cycles start with setting goals at the beginning of the year, having a mid-year performance conversation with your manager and ending the year with an annual review.
Some companies have a one-way feedback process, where the manager evaluates and typically assigns some type of rating to your performance, and then provides you with written feedback at the end of the year. Many companies include a self-reflection portion for employees in addition to the manager’s portion . Furthermore, some companies still rely on internally developed forms to complete these review cycles, which then need to be entered into an HRIS system for future reporting; others have created homegrown tools, but they are not scalable as the company grows or evolves. Regardless of what a company has in place, the common performance management process is outdated and flawed. It’s time for an overhaul.
Let’s Start with Feedback
One of the most impactful ways to revamp the performance review process is to incorporate a real-time or continuous feedback model. Traditional feedback models are too infrequent, relying on managers being able to remember everything an employee accomplished (or did not accomplish) over an extended period of time.They’re a disservice to employees, especially those that may be struggling in their role.
By putting in place a model that utilizes real-time feedback mechanisms, managers can help employees know when to adjust their performance and modify their goals on an ongoing basis. Incorporating regular feedback and discussions also helps employees identify areas for growth and development, which can lead to better overall engagement.
Several HRIS systems now have feedback options either built in or as an add-on module. There are also other new software offerings that can integrate with your existing HRIS to create a seamless employee experience. Having a digital tool that employees and managers utilize on a regular basis, whether to capture notes or action items from one on ones to sending feedback in the moment, helps ensure employees know where they stand from a performance perspective. Tools with both mobile and desktop capabilities make the ability to send quick notes or feedback even more simple. While a good performance process starts with feedback, it certainly does not end with that, and there are so many more opportunities for improvement that technology can help with.
Related Article: How to Create a 360-Degree Feedback Process That Actually Helps
How Else Can Technology Help Revamp The Performance Process?
Besides supporting real-time feedback, today’s HR technology offerings can aid the revamp of your performance process in a variety of ways. Here are a few examples:
Enhanced Communication: A revamped performance management process promotes more open and constructive communication between employees and managers. This can foster better working relationships and mutual understanding, as well as build trust, which is key for creating a psychologically safe environment and boosting employee retention.
Increased Accountability: Setting clear, measurable and realistic goals is a cornerstone of performance management. Modern systems can improve accountability by making it easier to track and measure progress towards these goals. Some HR technology tools have cascading company goal setting capabilities as well as the ability to directly feed goals and results into performance documents.
Adaptation to Remote Work: In an increasingly remote and flexible work environment, traditional performance management methods may be less effective. A revamped system can be more adaptable to the needs of remote and hybrid workforces. Utilizing digital tools to capture feedback real-time, documenting check ins and action items and providing the opportunity for anyone to give feedback to anyone else at any time can all aid in creating a culture of connection and belonging for remote and hybrid workforces.
Development and Learning: A revamped system can align performance management with employee development and learning objectives. This can help identify skill gaps and training needs more effectively, leading to a more skilled and adaptable workforce. Some of the tools available today have built in competency models that can link with your learning management system (LMS), where you can directly assign learning courses or opportunities to help in the development of your employees.
Performance management processes of today can trace their roots back to the early 20th century and the military. For many decades, this served the purpose and needs of companies that have the majority of their workforce in one or only a few locations. With the rapid advancements in technology, as well as more companies being 24x7, multi-site and global, these old systems no longer serve the current workforce. Companies that embrace technology to support their revamp of outdated performance processes will provide a better employee experience moving forward.