- The traditional once-a-year or semi-annual
anxiety-inducing exercise isn’t all that constructive (workers prefer and
appreciate frequent candid feedback discussions).
- While workers want regular performance feedback,
in general, many don’t believe that their managers have a realistic grasp on
the performance of their direct reports and that all too often, performance
assessments are subjective and even arbitrary.
- More than half (55%) of workers say annual
reviews do not improve their performance according to a 2019 study
conducted by Workhuman*
With the massive migration from the office to WFH, focus has
been on simplifying PM approaches and looking at tech solutions to help with
this as well as a shift to looking at PM as an element of employee experience. In a literature review of recent publishing on performance management, the word we saw consistently in nearly every piece is: “rethinking.”
We expect to see wider adoption of tools that continuously
gather employee feedback and enable managers to work collaboratively with
employees to set development goals and objectives that clearly connect those individual
intentions to the strategic goals of the company, reinforcing universally
shared goals and objectives.
Following is a sampling of resources pulled by the i4cp research team from articles
published across various global regions and industries in the past 12 months from
credible sources (excluding vendors and consultants):
Excerpt: Recalibrating key performance indicators (KPIs) is essential
to ensuring that remote work actually works. Enterprises that want the best
from their workers — and for their customers — innovatively invest in digital
accountability, but these efforts must acknowledge and respect newly blurred
distinctions between work and home life. Digitally colonizing people’s homes is
not an option; workforce mood and morale matter. Thoughtful leaders grasp the
need for a healthy coexistence.
In a recent performance management report, the question is
posited: ‘What if performance management was seen as an essential tool for
employee engagement? A shift to this mindset would change both the overall
performance management process and how performance conversations are
approached.’ Organisations may have inadvertently taken a leap forward in using
performance management as an engagement tool this year. As employers looked for
ways to connect with their home/remote working employees, some organised more
check-in calls. Replacing the ‘water cooler’ moments and
simply seeing an employee at their desk, a lot of these calls have
been more work focused (calls are generally scheduled with a purpose), so
performance management and employee engagement has become more intertwined.
Excerpt: As an industry almost entirely dependent on its ability to
recruit and retain the best talent, tech has been at the forefront of many
innovations in talent management. Companies like Netflix, Google, and Facebook
have implemented a large number of initiatives, including constant feedback,
the “Keeper Test” (where a manager is asked, “Would you fight to keep that
employee?”), the separation of performance review and salary discussions, and
Excerpt: As the yearly ritual of performance evaluation comes up next
month, we look at various ways in which HR should accommodate the new normal.
In place of having a ratings-based system for the entire team, one would
do well to reserve this system for top performers and laggards only. Not
surprisingly, majority of the team falls in between these extremes. Instead of
‘wasting time & efforts’ ranking miniscule deviations, HR must focus on
developing core strengths of this corpus. Similarly, companies should move
towards an ‘outcome-based’ approach instead of scrutinizing the processes.
Adopting an outcome-oriented Objective & Key Results (OKR) based
performance system provides more autonomy to employees working remotely while
holding them accountable for their performances.
Excerpt: Rather than fixating on certain metrics, look at your team’s
approaches to communication and complex thinking processes. Goal-setting looks
very different now than it did before the pandemic. Rather than trying to stick
to fixed goals that are discussed at annual reviews and then forgotten,
managers and teams should start thinking of goals as fluid, updating them on a
weekly or even real-time basis. The workplace management team at Gallup
emphasizes the importance of an “agile mindset,” which encourages teams not
just to expect change, but anticipate it. Ben Wigert and Heather Barrett write “managers should be given the expectation,
authority, and flexibility to tailor goal-setting to the team and the
individual as their work changes.”
organizations are curtailing or even abandoning performance management because
of difficulties measuring performance and disruptions in performance-based pay
due to the COVID-19 crisis. Contrary to this growing and troubling trend, we
argue that it is especially important during the crisis to not only continue
but also strengthen performance management to communicate a firm’s strategic
direction, collect valuable business data, provide critical feedback to
individuals and workgroups, protect organizations from legal risks, and retain
top talent. To do so, we offer a solution to overcome the challenges associated
with measuring performance during a crisis. Specifically, we extend and expand
upon the well-established Net Promoter Score measure in marketing and introduce
the Performance Promoter Score (PPS) to measure performance.
Excerpt: The University's approach to performance management is based
on the understanding that regular, meaningful conversations between managers
and employees lead to better results and higher engagement for everyone. All
administrative/professional and support staff at Harvard are encouraged to meet
with their managers as frequently as they choose to discuss their
work priorities, performance, and developmental needs and aspirations. Managers
are expected to proactively schedule and structure these meetings throughout
the year to minimize the stress associated with one-time, high stakes,
end-of-year performance appraisals.
Excerpt: Annual appraisals are falling out of favor as companies open
lines of communication and provide regular feedback and coaching to workers.
Evidence is growing that organizations are getting better at recognizing and
valuing staff members, with the approach shifting in two significant ways,
according to Kyle Brost, chief executive officer at Spark Policy Institute, a
Denver-based business consultancy that specializes in corporate employee
engagement tools and strategies.
"First, leaders are looking for more ways to use
data," Brost says. "Feedback can be very subjective and lack context.
For this reason, leaders are turning to more data sources to inform
That approach offers several advantages. "Data
emphasizes both individual contributions and organizational processes that are
working, along with any misalignments between the two," Brost says.
"Additionally, the sources and means for collecting this data are becoming
increasingly accessible, human-centered and user-friendly." For example,
data software packages such as 7Geese, Bamboo HR, CRG emPerform, Officevibe and
Saba Cloud all have tools to help managers provide feedback on a regular,
Excerpt: It is no surprise that employee stress and anxiety are
hitting all-time highs amid the pandemic. Ongoing uncertainty coupled with
complex family needs and potential financial strain presents a unique challenge
for everyone. Recent research from SHRM highlights that work-related concerns
have left more than 40 percent of employees feeling burned out.
Excerpt: The future of the performance review has been written about,
researched, and debated for years — but it’s still broken and has become a
political and bureaucratic battlefield. It’s time for organizations to develop
new models, especially amid the rise of agile and self-managing teams. The
opportunity to create a socially-based feedback system feels even more urgent
during the COVID-19 crisis since many people are working remotely and without
the same level of daily interactions with managers. A social feedback system
provides the employee a larger amount of feedback (often 50 or more instances
over the course of a year) from peers and others. This reduces the emphasis on
receiving feedback from the employee’s manager alone.
Trend #1: Mentorship Culture, For The Future
- 75% Senior HR Managers from
the respondent group agree that collaboration, constant communication and a
mentorship culture between managers and teams will become the future mandate of
a high performing workplace
Trend #2: Driving Growth Mindset
focused sentiment currently runs high amongst manufacturing industry, as they
have been impacted by lockdowns the most. Respondents perceive that product
innovation with faster execution will be the elixir that will keep them forward
in already competitive marketplace
are getting market ready to ride the next wave of change. It is of utmost
importance to create a growth mindset withing employees and amongst teams
Trend #3: Collaboration Is The Key
asked about enhancing output efficiency, 42.86% of the respondents from the manufacturing industry responded that a well synchronized network of teams
would be the best approach in the future. Followed by IT/ITES industry.
traditional workplace models, Work From Home concept is here to stay longer
than expected. It is visible from the above table, industries which never
thought of such practice are more inclined to adopt them
Trend #4: Outcome Oriented, To Remain Relevant
- Focus on outcome rather than
the process is slowly taking over organizational ideologies as enterprises are
rooting for objectivity and looking beyond a simple checklist
Trend #5: Industries Have Different Focus In The Next 3
to 5 Years
- 83% Of the survey respondents feel that the industry should start focusing on
a mentorship culture, where constant exchange of feedback is the key
79% Of the survey respondents feel that the industry should start focusing on a
mentorship culture, where constant exchange of feedback is the key
72% Of the pharma/healthcare industry is highly focused on being agile and fail
fast, as innovation in terms of products and services is crucial in the current
65% Of the respondents believe the logistics industry is bracing up for a major
overhaul due to the pandemic, thus are leaning towards HRTech advancements that
increase productivity by minimizing time, cost and errors.
Services- 60% Of the survey respondents feel that they need to reimagine their current
products/services and have the ability to launch them at a faster pace
Business/ IT- 57% Of the survey respondents perceive collaboration being the
key to higher output, as most of the employees follow WFH model
54% Of the survey respondents perceive collaboration being the key to higher
output, as most of the employees follow WFH model
the leading enterprise HR software for OKRs and Continuous Performance
Management, today released its second report based on insights from its
2019-2020 State of Continuous Performance Management Survey. This report found
a critical disconnect between HR leaders and managers, specifically around the
desired outcomes of their company’s performance management programs, and this puts
the business at risk.
- “Our survey found that many
managers view their company’s current performance processes as outdated and
more of a hindrance than a help. Outdated HR processes built to measure and
change performance management aren't working, so businesses are focusing on
improving goal alignment which can have a bigger impact on top-line company
growth,” said Doug Dennerline, chief executive officer at Betterworks.
“Overwhelmingly, the people managers that responded to our survey want to
increase how often employee goals are set and aligned with top company goals.
When business environments move this quickly, workforce agility is key.”