Does the phrase “It’s time for the annual review” elicit feelings of excitement for you? If you answered “no”, you’re not alone. Managers and employees alike often find the process time-consuming, ineffective, and complex. Today’s workforce is focused on building skills for their career (not just their current job), frequent communication and feedback (thanks to rapid advances in technology where we can receive information with the touch of a screen), employee engagement, and empowerment. The structure of the traditional annual meeting is a bit out of touch with today’s modern society and the expectations of today’s workers. With this next generation performance management, we will see quite a few changes. Below are two central differences to expect:
One of the central drivers for the need to overhaul the current process is our employee’s need for more frequent feedback and communication regarding their performance and career development. Meeting once a year is not sufficient to keep a person on track and continually building her skills. These types of conversations should be taking place on a regular basis between the employee and her manager to be most effective (monthly is ideal). The idea here is to receive real-time feedback that empowers employees in the moment.
Focus on Coaching & Mentoring
The next generation performance management process will do away with forced ratings on a specified list of competencies and instead shift the employee-manager dynamic towards a coaching/mentoring relationship. This shift is a reflection of a larger change in how we now view managers. In the past, the manager-employee relationship was seen as a top-down hierarchy. Today’s workforce (particularly Millennials) is seeking to work in a team environment with managers serving more as “team leaders” versus “executives”. This is thought to help create a network throughout the organization – increasing communication, knowledge share, and ultimately empowering employees.
This year, it is projected that more and more companies will begin to seriously evaluate their performance management processes in an effort to create a more effective and modern solution. Take a look at your process – What is working? What is not? Why? You just may find this next generation performance management strategy is the right fit for you.
Do you feel your performance management process is outdated or out of sync with your employees? Give us a call. We work with our clients every day to implement smart, successful strategies that achieve their organizational goals.