Now it’s time to get busy and plan for the year ahead. But WAIT!! In a recent public survey conducted by Deloitte, only 8 per cent of companies report that their performance management process drives high levels of engagement, while 58 per cent said it is ineffective and may actually hamper performance. While it’s still fresh in the minds of employees and managers wouldn’t this be the ideal time to do a post-mortem on your annual performance review processes?
Traditional performance management in the form of annual reviews, are the long-hated, but long-standing tradition of a ‘formal discussion between a manager and employee focusing on his or her strengths and weaknesses to determine what kind of pay increase the employee will receive in return.’ I regularly hear from individuals how they don’t feel recognised in their role by their peers or employers and, as a result, they feel disengaged and disempowered to have any impact in their role or organisation.So why are these programs still going strong within the majority of organisations? Could the traditional approach to performance management actually be damaging or limiting the performance of your employees?
In a recent study, 2017 Lighthouse Research and Advisory Performance Management, Engagement and Business Results, 44% of high performing organisations are more likely to do more frequent goal setting with 37% more likely to use recognition to drive performance. High performers are less likely to be using negative performance practices like rankings and ratings and are much more likely to be using positive practices like coaching and peer feedback. Having more regular coaching conversations, giving real-time feedback, moving from a Performance Management culture towards a more Career Development culture is a fundamentally different type of experience for the employee. The employee is empowered and engaged to take charge of their career. Simply put, engagement links to revenue and revenue generates profitability.
It’s fair to say that stale feedback is not at all useful to career development or engagement. Receiving feedback 6 to 12 months after the fact is not a way to move people forward. Adopting a culture of ongoing, real-time feedback and coaching designed to promote continuous employee development and engagement will ultimately significantly improve the impact to your business performance.
Changing the way you carry out the performance management is about changing the culture and behaviour of the employees, managers and the organisation as a whole.
What if the best approach to your business might not look like what everyone else is doing? Is 2018 the year of change for you?
Finders can work with you to assess the effectiveness of your Performance Management Process and help you create that plan for change. Please contact us for more information.