If you’re competing on traditional measures of efficiency, cost and productivity… you might be stuck in the old world. We’re now in a new era where the best companies are competing with the human skills of creativity, service, innovation, communication and collaboration.
This means the high performing businesses are actively seeking out the best employees who know how to bring these human traits to their jobs. It is now more about the people than the corporate processes, and the ‘power’ has shifted from employers to employees.
At the same time we’ve seen a generation of employees enter the workforce with a very different outlook to work, where they’re willing to flex their new found power and won’t accept traditional ways that are misaligned with their values.
Previous changes to performance management have been ‘more of the same’, just making the old way more efficient. The old process was focused on the bottom 5% and how to legally move them on.
The new way is focused on the top 95% and how to help them grow.
Over the last 7 years we’ve seen companies throw away annual reviews and ratings all together.
But this has had some unintended consequences. Many HR leaders tell us:
…the absence of a formal process has led to a more ad-hoc and secretive approach to remuneration reviews.
Employees have been asking for greater transparency and in the last 3 years we have seen ratings come back, but in a very different form and as a part of a very different process.
And it’s not just Tech companies. If we have employees and we’re not teaching them skills, developing and coaching them to be their best — they’ll find an employer that will meet these innate human needs.
These employers are winning in the new world because…
I don’t think you need convincing of this shift because I’ve spoken with countless HR and business leaders. They all recognize a more continuous approach is needed, with more frequent and better quality conversations between managers and their teams but the real challenge is:
What exactly does the new continuous performance management process look like?
It’s an employee centric approach to performance development that creates purpose and engagement. It’s about establishing 3 routines aligned with the way people actually work:
- Flexible or agile goal setting (We recommend OKR’s — Objectives and Key Results)
- Regular 1:1 check-ins between managers and their teams
- Easy peer to peer feedback
This way of working captures small pieces of accurate and objective performance related data throughout the year. The information is collated at year end to perform a review based on quality data.
A key point being this is genuinely a review of performance data. The traditional performance management approach is cumbersome because it creates the data at the end of the year for the review process to take place.
I attended an awesome performance management webinar by Josh Bersin and in his words…
It is this journey that helped us crystalise the problem we are solving at Crewmojo with our web software that makes it easy for HR or business leaders to lift employee performance with a performance management system that doesn’t suck!
A top pitfall when implementing continuous performance development is not recognizing that it’s a journey that your team need to go on. I can almost guarantee (from hundreds of conversations) that most people react negatively to the words performance management or performance development.
It took me months to truly understand how this all works together and we need to our teams the time to experience the same journey to build their own buy-in.
Speak to us about our continuous performance maturity model and roadmap that takes you from the traditional approach to the new world, one step at a time.
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