As supply chain bottlenecks, inflation, and geopolitical challenges continue to cause uncertainty, the need for business agility and resilience has remained in the spotlight – driving steady demand for agile corporate performance management (CPM) and analytics software solutions.
FREMONT, CA: Employee performance management is evolving. The 'Great Resignation' is having a significant impact on organisations; managing, developing, and motivating employees through feedback and performance management is more important than ever.
1. More continuous feedback and check-ins: 95 per cent of managers are dissatisfied with how their companies conduct performance reviews, and nearly 90 per cent of HR leaders believe the process does not even produce accurate data. Dissatisfaction in once-a-year reviews is caused by a variety of factors, including:
• Millennials and GenZ: Millennials and Generation Z are now the most powerful generations in the workforce. These employees want more feedback and transparency, but only 19 per cent of millennials say they get it regularly. A smaller proportion of millennials (17 per cent) believe that the feedback they do receive is meaningful. Sixty per cent of Generation Z expects multiple check-ins from their manager. While employees of all generations want continuous feedback, it is especially important for these employees, who want to continuously develop and improve. Annual reviews are simply insufficient.
• Evolving organizational structures: Many businesses no longer have hierarchical structures. Throughout the year, employees work in a variety of roles, across various teams/departments, with a variety of (project) managers. This makes remembering employees' contributions at the end of the year extremely difficult. Companies require agile, real-time performance management systems that match the organisational team matrix.
2. Impact of hybrid work: There are fewer organic moments to share feedback with hybrid or remote work; for example, managers cannot simply pull employees aside after a team meeting for quick feedback as easily as before. Feedback and development conversations tend to take a back seat in this hybrid and remote world because everyone is so busy and focused on completing their to-do lists. Organizations must implement standard processes and tools to promote developmental conversations and capture feedback consistently.
3. Performance data in all aspects of talent management: Competition for top talent has always been fierce, but it is now fiercer than ever for many of us. To remain competitive, organisations must make data-driven decisions to optimise their employees' performance, motivation, and development. Finally, it is worth noting the significance of training new managers. Just because someone is an excellent individual contributor does not imply that they are capable of managing others. Managers and future leaders must be trained in effective feedback and coaching, among other skills.
Over the last decade, there have been significant changes in performance management processes and systems. The demise of the annual performance cycle made headlines, with some organisations abandoning Annual Reviews and the Bell Curve. Agile, continuous performance management, ongoing feedback, and 360-degree reviews have all become trendy buzzwords. Technology brought about change, with more mobile, anytime-anywhere PMS modules enabling real-time communication and collaboration for performance management. Despite these changes, performance management as an HR construct did not appear to keep up with the overall rate of business change.
