image credit: thecareermuse
According to a survey from Wakefield Research and BetterWorks, human resource leaders have committed to major changes in performance management and human capital management processes, but well over half haven’t started the overhaul. They report that while 99% of HR executives have committed to changing their current processes, 58% have yet taken any progressive actions. Large organizations like Google and Adobe have already overhauled their internal review systems.
Currently, 81% of respondents said they use, or plan to use, continuous performance management, including ongoing feedback and regular check-ins between managers and employees. At least 50% have adopted a more frequent goal-setting process with over 30% dumping all forms of ratings or rankings completely. As exciting as this development is, plenty more haven’t actually caught on yet.
Among the actions planned, either currently being implement or on the schedule upwards of the year 2018, there are plenty of trends already on the move in the workplace. For instance, 79% of HR executives have higher spending planned for performance management processes in 2018, spends which have raised the budget of a lot of organizations by as high as 10% or higher. Most are not fond of annual performance reviews, with 41% saying the reviews fail to actually improve employee performance at all, rather, they cause too much tension and anxiety for employees and managers.
Continuous performance management is shoring up a lot of the challenges with traditional reviews. 85% of managers in organizations with a CPM system in place provide employees feedback quarterly or monthly, transforming legacy systems into an ongoing experience. Such amount of real time data about an employee’s performance being readily available throughout the year is important especially for younger employees. The bulk of these HR executives rely on leveraging technology solutions like Factory for continuous feedback and check-in process which they admit makes the entire process a breeze.
Over 47% of HR executives still have plans to employ the carrot technique – increase spot bonuses or bonuses given for exceptional work. This has always been a motivation for employees to do better if we go by the principles in Maslow’s hierarchy of needs. Be that as it may, continuous performance management helps managers see whose performance is stellar, allowing appropriate recognition and adequate compensation. The hardworking dog, in this case, eats the fattest bone.