For many of us, annual performance reviews may not evoke feelings of excitement. Perhaps the arbitrary questions and subjective ratings are seen as ineffective, having little impact to the business. Or maybe the fact that managers and employees do not communicate enough throughout the year makes it difficult to recall overall performance. Whatever it may be, the traditional performance review is losing its luster and there is a push to replace it. In 2016, we have seen a trend where performance management practices are shifting from top-down annual performance reviews to continuous management and feedback strategies. A few differences that set this new approach apart from the traditional include:
Instead of rating employees on a long list of competencies, next generation performance management will focus on the employee and her manager collaboratively setting realistic, meaningful goals. These goals will have a visible impact on the performance of the employee, the team, and the company overall. Goals geared toward her specific position can be easily monitored, reducing the subjectivity that comes from rating basic competencies alone.
Only meeting once a year is not sufficient when you’re talking about shaping employee performance. For an employee to stay focused on his goals, he needs continuous feedback to really improve. The frequency of feedback depends on what suits your organization best, but a good rule of thumb is to set quarterly check-ins to review performance. Checking in frequently with your employees will significantly increase their productivity!
Coaching is the New Management Style
A pivotal piece to this shift in performance management involves an emerging new type of management style where managers are seen as coaches versus managers. Functioning in a coach capacity (versus the traditional manager role) can lead to great things for your organization such as avoiding costly and time-consuming performance issues, strengthening your employee’s skills and value-add to your team, and improving your retention rates. A win-win-win!
There is no time like the present to reshape your performance management process into a more flexible, modern approach that makes a real impact on the bottom line. What are you waiting for?
Want to get started today reshaping your performance management process? Email us or give us a call at 703-587-5615. We help our clients every day implement easy-to-use, meaningful solutions for their HR needs. We would love to do the same for you.