Today, the fittest companies survive and thrive by adapting to their environment. Leading brands including Accenture, Deloitte, Adobe and GAP are shifting from traditional performance management to more employee centered practices. The true value of an employee’s performance is more than delivering targets, meeting datelines or impressing the manager. Employees want to better themselves and add value to their organizations, customers and fellow employees.
While rewarding and evaluating employees is a good practice, how do you know if you are rewarding the right person or evaluating what the employee is actually doing to contribute to the organization? Why review an employee once or twice a year – especially after they have forgotten or the feedback is too late to make a difference? This compares to giving feedback to an athlete once in a year and expecting them to win at the Olympics. Athletes improve because they get immediate feedback and on a regular basis. For a manager, it is important to analyze employees on an ongoing basis beyond their rank, role or hierarchy position. Shift your methods by evaluating emerging networks that form naturally and how employees are contributing overall. Provide feedback and reward that is appropriate and deserved.
Why you need to shift from performance management as we know it today
Performance appraisals are often just a formality and not welcome but it might be the only feedback received from the manager. A survey of 1000 employees conducted by Mercer Global force for performance management revealed that 60% of participants feel that the review doesn’t give an accurate appraisal of their performance. Performance management started as a management practice during the Industrial Revolution. The paradigm is changing. The traditional ways of providing performance feedback is outdated at best. With the increased use of social media and technology to share information in the workplace, informal methods to evaluate performance are more aligned with the way that employees get the work done and communicate.
Why should companies consider using informal methods for performance management:
- Timely and regular feedback works.
- Evaluating performance once or twice a year will miss accomplishments and contributions that should be noted.
- Including more than just the manager’s input is important.
- Handling performance issues immediately is important. Low or non-performers affect the engagement and commitment of other employees if not handled directly and quickly.
- Encourages positive feedback and not just what needs to be improved.
- Considers what motivates the employee.
- Informal methods captures a 360 view of how the employee contributes and impacts others rather than just what he/she did alone.
- Formal performance management system are costly to implement and maintain. The return on investment diminishes with increased time and resources spent on an out-dated, status quo system.
- Employees commonly complain about performance reviews and feedback (or lack of).
Think about how you manage and evaluate employee performance today. Find alternatives that save costs, resources, time and are more effective.
- Evaluate the current performance management system; what is working or not. Improve the process using informal management methods and offer immediate feedback to change results.
- Train your managers to appreciate the benefits of communication and feedback that works to create trust, engagement and business results.
- Evaluate performance based on how the employee actually performs both individually and as part of the organization as a whole, not only where they fit the bell curve.
Performance management is a by-product of old management methods. Both are becoming extinct.
Related Post: Transform your company with Organizational Network Analysis
Resource: Call us for a free consultation about using informal management and evaluation methods to use immediately and begin creating a culture of engagement and increased productivity.