Is your company still utilizing an annual performance review to measure and reward?
Well, guess what? That archaic performance planning process is becoming a thing of the past as executives and stakeholders are requesting full transparency of corporate and individual performance. The process of reviewing performance is changing and that requires a much more frequent look at how the company is doing on a weekly, monthly and quarterly basis. Shareholders, investors and even competition, are fueling the need for metrics driven performance. What does that mean for today’s workplace and what are some of the industry leaders doing about it?
Research continues to demonstrate that annual performance reviews don’t accomplish what leadership hopes. One Deloitte study found that nearly 60% of companies say reviews are not an effective use of time, compared to just 8% who said they could tie existing performance management to value improvements.
Managers and HR professionals know that the old ways are broken, but luckily many have already started to put new, effective methods into place. For most, there’s no need to reinvent the wheel, simply to hone the tools and practices established based on employer preferences. And…. employer preferences are creating a huge trend in the workplace. From a Deloitte 2016 Study, The New Organization; Different by Design, “After three years of struggling to drive employee engagement and retention, improve leadership, and build a meaningful culture, executives see a need to redesign the organization.”
Part of this redesign involves how employers look at performance overall. To address performance concerns and identify high potentials, many companies are adopting new employee evaluation models that provide consistent feedback tied to objective, transparent measures. Making the change to an automated system that allows consistent feedback often means that managers are simply taking time during established weekly or monthly meetings to discuss individual performance, reaffirm employee contribution, and listen to employees’ ideas and career goals. Others are using feedback conversations via check-in emails to include reviews and status updates. Performance data and employee goal-setting is then passed on to HR for analysis on a more frequent basis.
Not only are these measures more appealing for many employees – such as making progress easier to track and creating more realistic expectations – but they build on existing continuous improvement practices and can take some of the stress and fear out of change. Human Resource teams also get the added benefit of analyzing the workforce in an ongoing fashion, instead of having to cram analysis of a year’s worth of progress into the final few weeks of the year.
One of the standard management practices that is being used is a continual review process where employee progress and successes are discussed consistently, with clear objectives presented for both parties to see.
While your executive management may not directly be considering performance relative to annual goals, consistent meetings do provide a strong starting point. Discussions often center around the current business needs; while the ability to shift and address new needs is often a successful performance indicator when looking at employee fit and value.
This level of constructive, ongoing feedback, often called coaching, not only promotes continuous improvement and high employee engagement but also increases employee retention. Information coming from continuous feedback practices provides HR with the first inroads into performing long-term analysis of workforce trends across a variety of metrics.
Tracking performance by metrics can help an organization to identify high potentials, reward the top performers and retain talent. Much has been written about Millennials, who are generally born between the early 1980s and 2000. It is forecasted that 75% of the workforce will be made up of Millennials by the year 2025. According to Shelby Doherty’s blog posted in March 2016 Huffington’s Post, “That statistic is shocking, yet inspiring (...for some of us...) Millennials… expect to be paid well, want to be fulfilled, enjoy flexible work arrangements, a challenge, and a company with strong, ethical leaders.”
Capitalize on this knowledge by organizing it in a modern continuous performance engagement platform that creates a way to align and track performance more consistently by tying reviews to specific workforce metrics…..thereby ensuring tomorrow’s workforce will find their success on one of your high performing teams!Reinventing the Review Process with KPISOFTIts essential for every company to understand the importance of aligning corporate strategic goals to every level of employee in the organization. Turning goals into action items can be a challenge if everyone is not aligned. Bridging all of these new changes and informational needs into the modern HR department are brands like KPISOFT, which provides a core structure to show employees how they are progressing toward specific goals in a meaningful way. Use Continuous FeedbackPerformance process templates are available in the KPISOFT software. These templates, developed by using proven best practices, encourage and provide a platform for positive, constructive feedback. This structure helps managers reaffirm expectations and provides employees with goal-oriented objectives that translate into specific, achievable actions.When KPISOFT templates were adopted by a leading Asian multinational corporation (MNC), the brand was able to achieve an 85% positive feedback benchmark in all employee surveys.Using Collaborative Conversations as Coaching OpportunitiesBy using a performance management platform with coaching templates, consistent processes make it easier for reviews to meet four of the key pillars of strong performance management: alignment, coaching, collaboration, and calibration.Best Practices templates like ARROW and GROW, provide a variety of questions designed to start meaningful conversations between managers and employees. Although communication is something we all use in our daily workplaces, it is often difficult to come up with the right set of questions to address performance with employees who have their own unique competencies, skills and performance ratings. Using questions from the templates is designed to be similar to having a quick handy database of questions at your fingertips.Click the image to download a Sample of the GROW and ARROW templates available in the KPISOFTPerformance Management platform.Alignment is more than just streamlining the process. Review templates can be used to discuss multiple metrics throughout the year, linking employees to Key Performance Indicators (KPIs) relevant to the specific business goals and organizational strategies.Coaching on-the-go through a digital review process ensures that physical barriers don’t prevent the process from continuing. KPISOFT provides multiple tools to facilitate the interaction, allowing organizations to have performance data available in real-time. The coaching experience is reinforced by the consistent interaction resulting from the use of template questions that help keep performance goals in a positive light. This provides management with the ability to ask the right questions regarding performance concerns that could create morale issues if not addressed at the onset.Collaboration of the data using a centralized reporting system allows HR and Management to create a 10,000-foot view of their organization. Platforms from KPISOFT facilitate analysis that can lead to better data-driven business decisions and insights.One benefit of a single platform is that it provides a more holistic evaluation of your workforce. Ranking, grouping, and sorting functions that critique the workforce serve as tools available to look for areas of improvement, areas of best practices and areas of progress.Simple sharing of reviews and information with appropriate supervisors provides HR professionals and managers with the ability to check-in and understand employee performance changes, improvements, and newly identified needs. Creating standardization across all processes allows calibration to occur…..no matter how many employees, how many departments or how many locations.Calibration is essentially the ability to rank groups based on data, independent of the individuals who take down that information. An easier, more effective review process is possible even when there is turnover in all areas of management, thanks to a system that maintains information and uses data to track goals and progress, meaning there’s always a reference point.KPISOFT offers stakeholders, shareholders and executives the entire scope of visibility necessary to manage change, capture market share and yield a much greater ROI. If your company wants to achieve this type of success, take the leap and join the new Performance Revolution.