Performance Review Aligns Employees To Individual Goals
With the advent of technology, HRs in an organization are trying to break the cycle by opting for periodical performance assessment.
Krishna Prasad, Head HR - APAC, Skillsoft plays down the importance of periodical feedback and performance review in an appraisal cycle.
How important is performance appraisal for employees and from an employers’ perspective?
The famous line of Peter F Drucker - "If you can't measure it, you can't improve it" resonates perfectly when it comes to performance appraisal from both employer/employee perspective
For Employees:
For Employers:
What is the process of periodical feedback? Will more organizations follow suit and move towards a merit-based salary program in the coming years?
In today’s app-based world, every transaction seeks for a feedback/rating instantly and the same is getting replicated at work. Performance Management is here to stay, the method of constant and continuous feedback is changing”
Mercer’s 2017 Global report reveals that 88 percent of companies not only made changes to their performance management process in 2016, they expect more to follow. 81 percent reported that they already have an “anytime feedback” tool in place.
The Mercer report also highlights another interesting statistic – 97 percent of employees say they want to be rewarded and recognized for a wide range of contributions and not for financial or activity metrics alone.
Best-in-class organizations focus on a performance-driven rewards system that compensates individual contributors directly proportionate to what they achieve and what they contribute to the bottom-line. It has been seen that programs that align employees’ compensation – merit increases, bonuses, long-term incentives – to their performance have proven to be very effective in driving actual performance.
Often called pay-for-performance (P4P), the concept is to build a culture of top performers by aligning goals, performance, and rewards across an entire organization. Motivating, rewarding, and retaining top performers is a key business objective for any company that seeks to successfully maintain or exceed growth expectations.
How does the periodical assessment replacing annual review helps the organization play a role in building individual careers?
The annual performance review process is evolving. Many are moving away from the high-stakes ratings and annual conversations and making the overall process more user-friendly for managers and employees. A regular feedback cycle between managers and employees results in timely corrections to behaviors, improved and ongoing development, and a better manager and employee relationship. It also enables organizations to reinforce what’s expected from employees if they’re to support the company’s goals.
Employees don’t plan to stay forever in their current positions and instead want to progress and take on more responsibility through promotions and career advancement. A well-structured periodic assessment gives organizations a valuable opportunity to support those employees eager for greater challenges.
Then managers identify their team members’ career goals and plan for future career development opportunities, such as additional training, extension courses or new projects, it leads to more engaged teams. Thus, periodical assessment, in turn, benefits the business, as it enhances employee loyalty, engagement, and productivity.
How does the performance review coupled with technology help organizations to lower the attrition rate?
As organizations have begun to incorporate periodical performance reviews, they have started to rely on technology to seamlessly undertake these processes. Learning management systems are put in place to record and track each employees’ goals as the data is stored in an accessible place. This helps the employee to refer to his/her goals online whenever required. This helps to keep the goals up to date and clearly reflect on the progress and development of each employee. In turn, the employees get to see a clear-cut path, feel motivated, engaged and excited about their career path thereby continuing their association with the organization. The same technology is accessible 24/7 via mobile phones, capturing real-time data that is linked to specific goals and competencies/projects from multiple sources.
HR technology empowers managers and employees to stay aligned with rapid changes in corporate strategic objectives due to the pace of digital transformation and competition. Best-in-class organizations use HR technology for performance conversations when it comes time to award pay and promotions.
What is the optimal outcome for periodical performance management?
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