Performance Management is not an Annual Exercise

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There is a dwindling focus on the traditional annual performance appraisal and a there is a growing trend toward developing feedback loops that give continuous, real time feedback to employees. According to the 2018 State of Continuous Performance Management Survey,  conversations about aligning business goals, check-ins on progress and periodic feedback should be used to manage and continuously motivate employee performance.

HR respondents in the study identified their top three goals for their performance management program as creating and maintaining feedback and coaching cultures, retaining high performing talent and training the workforce on needed skills. To better manage and motivate workers, Betterworks said, employers can help employees find purpose and direction among change, connect employee contributions to the organization’s larger goals and identify and reward top performers.

In a Wakefield Research study, more than 60% of employees said they feel the traditional performance review is outdated, and nearly all respondents said they prefer that managers address performance issues and development opportunities in real-time. Frequent, informal assessments allow workers to improve or correct their performance with immediacy.

Ideally, having a robust performance management platform can assist in giving and receiving real time feedback, create an environment where information is sought out and shared, build engagement and detail plans for talent learning opportunities and enhancements.  Employees want to know not only how their past performance has been, but the plans for their future as well. Consider the below:

  • More than 90% of 18 to 34-year-old workers say a clear succession plan would boost their level of engagement
  • 94% of employers report that having a succession plan positively impacts the entire workforce.
  • 32% of people say they’d quit if there was no room to learn, grow, or advance at their job.
  • Succession programs have been shown to have a positive impact on employee retention. By preparing high-potential and high-performing employees for progression in the organization, and investing in their development, you demonstrate an organizational commitment to them that will most often be reciprocated.
  • Companies with sound succession plans are correlated with better long-term performance.

Succession Planning or Talent planning, which refers developing plans for the whole organization, are a primary outcome of a solid, on-going Performance Management approach that many companies are moving toward today. It is a win-win scenario for both employees and employers alike!