Recent trends indicate that many companies are reevaluating the way they evaluate employee performance. According to the Deloitte 2017 Global Human Trends Capital Report 79% of executives rate redesign of performance management a high priority. When it comes to performance management trends, what strategies can leaders utilize to improve performance management cultures?
Provide more positive feedback. Annual reviews are being replaced with more agile performance review strategies, since employees typically require more frequent communication. Deloitte Studies show that 90 percent of companies report employee engagement improvement and 83% report improvement in the quality of conversations between employees and managers.
Provide less managing and more coaching. Employees typically feel more valued and contribute more when they feel invested in, and receive more individualized attention relating to personal job growth. The Deloitte Report indicates that an increased number of companies are placing more emphasis on coaching and development versus management and supervision.
Increase peer evaluations. Peer evaluations can encourage transparency and open communication, since peers can add a different perspective from that of a supervisor. For example, Facebook incorporates peer reviews with performance appraisals which are used to conduct fact-to-face meetings between managers and direct reports.
Increase team building rather than forced ranking. “Pitting” employees against each other can risk creating an environment which promotes prima donnas rather than team players. If a company is hiring properly, all of its employees should be strong performers.
Outdated performance management cultures can put companies at risk, causing high turnover resulting in increased cost and time. Click here for more information on developing strong performance management cultures.