Performance Management has been unsuccessful in many companies. Traditional annual evaluations and improvement programs are no longer appreciated by employees and employers alike. The reason – they aren’t employee-centric, essential and do not give actual results.
58% of organizations rate their performance management software as “C Grade or below.” Statistics show that only 14% of companies are happy with their performance management software and over 90% of the managers are troubled with the existing system as it does not cater to employee development needs.
There is something obverse and worthless when it comes to the current Performance Management processes. Adobe was one of the first companies to do away with Common Annual Appraisals in 2012, and the company opted for a Continuous Performance Management along with entering an idea of regular check-ins and feedback analyses.
No doubt, implementation of CPM has produced significant growth in workforce productivity and unexpected in voluntary turnover by 30%.
The Big Transition – Continuous Performance Management
According to Bersin, Deloitte Consulting LLP, “Continuous Performance Management (CPM) is mainly defined as an approach that encourages continuous conversations among the managers, direct reportees, and the teams about different goals, work progress, and performance to date (in the form of constructive or positive feedback).
CPM aims at smoothening the method of ongoing one-on-one discussions between managers and direct reports, periodic performance and extended conversations, and real-time collection of performance feedback data within great work circle.”
In the last few years, there has been a constant shift from aggressive evaluation model (where the employees are rated and scored on few parameters to assess their performance) to continuous coaching and development model (where an employer is further focused on encouraging employees to become better, perform brightly and learn new skills preferably than managing scorecards).
Employers now include the latter model to meet employee development needs, improve employee experience, and establish a skilled performing workforce. This has revealed a definite roadmap to keep the workforce engaged, motivated and happy. A motivated and satisfied workforce leads to better company performance and profitability!
Continuous Performance Management Best Practices
Performance Management methods are still experiencing much-needed redesigning. According to the new model, popular annual appraisals and employee development strategy have transitioned into a constant, real-time feedback and coaching method combined with various manager-employee interactions. This new program accelerates the accomplishment of goals, makes performance evaluation more important and prioritizes employee’s occupation development than rating and scores.
With an annual performance evaluation cycle, the critical difficulty was to deal with unhappy employees due to yearly feedback and decline of regular skill development programs. Employees demanded more from their managers than just one or two feedback sessions.
Here are some example of real-time practices that gained CPM more attention and focus.
Periodic Reviews on Goals – At all time, keep the employee goals adjusted with team goals and company objectives.
Regular Performance Check-ins and Conversations – Frequent communications between managers and employees help in recognizing areas of development in performance and practice.
Constructive Feedback – Review goes a long way if it is given in a productive and very thoughtful manner. Give feedback that makes employees recognize their weaknesses and strengths.
Training and Skill Development Initiatives – Learning and coaching on an ongoing basis gives the opportunity to stimulate career growth.
Performance Development Checks – Continuously measure performance (through reviews) to identify if the remedial action plans are working in favor.
Continuous Recognition and Appreciation – Keep employees motivated with continuous recognition for their hard work and their efforts.
Open The Potential Of Continuous Performance Management
Over the last few years, many articles and investigations have taken place about the importance of transitioning from a yearly to Continuous Performance Management, and how companies such as Adobe, Accenture, Deloitte, and Cisco have seen a significant improvement in overall workforce productivity and development.
CPM actions have focused exclusively on the development, employee experience, workforce commitment rather than just performance. Some of the advantages that have been achieved with the implementation of CPM are:
» Progress in employee engagement and performance
» Low employee decline and dissatisfaction
» Foster practice of endless learning and development
» Development in organizational agility
» Positive transformation in work culture in companies
Though almost everything sounds good in theory, the more prominent search is to identify the right technology and solutions that allow companies to achieve Continuous Performance Management successfully.
Technology has been the most significant enabler in achieving CPM effectively. Some performance management software vendors have mainly studied the concept and importance of CPM to help companies in adopting it readily.
Though technology providers have advanced solutions to meet the swiftly growing needs of CPM, companies are yet to embrace this approach.
What are you doing to engage top talent and increase your performance evaluation methodology? Will Continuous Performance Management be your choice too?