New trends in Performance Management

feedback-smallPerformance management processes have undergone dramatic changes in recent years, the reasons being quite simple. Times are becoming volatile, fast changing and complex. Further the rate at which technological, political and social changes are taking place is also accelerating. So organizations are focusing on what they think works best for them, their businesses and also what helps their employees perform best for themselves and their company.

The rapidly changing environment will be very different a few years down the line, so the old methods of goal setting like setting SMART objectives are like writing a business plan which does not work any longer. We have no idea of how things will shape in the future, so we can only move towards what we want to achieve everyday and make a regular habit of reviewing and adjusting things as the environment keeps changing. Thus, in order to constantly deal with the new challenges and unknown problems, we need to continually improve, grow and increase our list of competencies.

Performance management is now being considered more as to how we work together in teams and how we manage our people. It is being used to build work relationships and develop employees to grow the business.

Some of the future trends to look out for, are those of redefining employees roles and with it the reshaping of how to do business :

  • CONTINUOUS PERFORMANCE MANAGEMENT : Today’s companies realize that the old process of performance management does not fit the challenging business environment of today. The demands of younger employees – Generation Y and Z – from their jobs and companies, are leading the changes in performance management by bringing in the age of continuous performance management. This process is an ongoing one for goal setting, coaching, evaluation and feedback and takes place throughout the year as a contrast to the traditional approach to performance management. It is an effective process, works and can help to change a company.
  • IMPROVE PRODUCTIVITY AND TRUST : “It is not the number of hours you put into work, it is the amount of work you put in those hours”. The above saying is what is critical to performance and to increase productivity at the workplace. Further by making your employees accountable for their actions, instills a sense of accountability and also empowers them with confidence to do their best. By extending trust to employees, productivity can be improved and employee growth and development supported..
  • FOCUS ON CONSTANT IMPROVEMENT : You should never forget that there are always ways to improve performance and room for improvement. Be flexible and always ready to find a way to do things in a better way. Be ready to look towards ways to improve your skills to fulfill new job demands and grow yourself. It is by having a growth mindset that one can become really successful and able to fulfill our goals.
  • PEOPLE ANALYTICS : IT is becoming more critical for companies to collect and analyse employee data on performance ratings, turnover, team interaction and performance, employee feedback and well-being. With this information Managers are in a better position to make more informed decisions on employee growth, promotions, trainings, transfers etc and can improve the company environment and with it the employee experience.
  • TAILORED EMPLOYEE SUPPORT : Every employee is different and a single management approach cannot bring out the best qualities in an employee. So a more personalized approach is key to a successful performance management effort. Work forces are diverse and some teams may consist of people with varied experience and come from different generations and cultures. So more Managers are taking a more personalized approach to motivating their team members to support them in meeting their performance goals which contributes towards boosting overall team performance.
  • LEARNING AND DEVELOPMENT : According to Gallup,87% of Millennials cite access to professional development and career growth opportunities as the most important factor in a job. These employees look for a company which provides more employee training and development opportunities. So many companies are moving towards informal micro-learning like brief videos, webinars, podcasts etc. These put employees in charge of their own development and makes for an environment of continuous learning in the company.
  • MODIFY AND REDEFINE JOB ROLES : Employees like doing what they do best. So when they can do so, they become more innovative, productive and satisfied. Research shows that 60% employees want the ability to do what they do best, regardless of their role. Whenever there is a special assignment managers look for the capabilities and skills required for the carrying out of that assignment. Teams are built of people who have specific skills that are needed to deliver the assignment. When the best talent and skill set is identified and is chosen there is a greater probability of achieving success.

Continuous performance management is the focus of the future. People analytics tools and other HR Tech will allow managers to be present and support every step of the employee life-cycle. Employees will be more motivated and productive and this will lead to increased business growth and success.

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