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How do you innovate your performance management system to engage employees?

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Performance management is not just about evaluating and rewarding employees, but also about motivating and developing them. A traditional performance management system that relies on annual reviews, ratings, and rankings can be demoralizing, ineffective, and outdated. To engage employees and foster a culture of innovation, you need to innovate your performance management system as well. Here are some ways to do that.

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1 Align goals and feedback

One of the key elements of an innovative performance management system is to align the goals and feedback of employees with the vision and strategy of the organization. This means that you need to communicate clearly and frequently what the organization expects from employees, how their performance contributes to the organizational success, and how they can improve and grow. You also need to provide regular and constructive feedback that is specific, timely, and actionable. Feedback should not be limited to formal reviews, but also include informal and continuous conversations, peer-to-peer recognition, and coaching.

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sarah oladeji, MBA

Head Human Resources | L &D Specialist | International Recruiter | Employee Engagement | Performance Management Specialist | Tech HR | Human Resources Instructor
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As an organization one of the key elements of an innovative performance management system is to implement a system that allows continuous feedback, whereby an employee get a one on one feedback from their line managers on their job. On the other hand, goal alignment also play a significant role. Every goal should be gotten from an organization's strategic objectives. An employee can be more engaged when they realize the impact of their job is reflecting on the overall corporate goals and objective. Further more, Recognitions also play a significant role to this regard. We should also offer continuous learning and development opportunities to help employees acquire new skills and stay relevant in their roles. Most of all transparency.

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2 Embrace flexibility and diversity

Another way to innovate your performance management system is to embrace flexibility and diversity in how you measure and reward performance. This means that you need to recognize that different employees have different strengths, preferences, and needs, and that they may perform better in different contexts and situations. You also need to acknowledge that performance is not static, but dynamic and influenced by various factors. Therefore, you need to adjust your performance criteria and expectations according to the changing needs and goals of the organization and the employees. You also need to offer a variety of rewards and incentives that appeal to different employees and motivate them to perform and innovate.

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Sarah Larson

Global Learning & Organizational Development Strategist | Driving Talent Management and Leadership Development
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One thing to mention here would be to consider advancements in organizational network analysis and technology. Lots of information could be pulled from common resources such as Slack. On the point regarding a variety of rewards and understanding individual employee needs and strengths - this speaks more to the management of the organization /team. The only way to tailor your incentives is by placing the human back into the process.

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3 Encourage collaboration and learning

A third way to innovate your performance management system is to encourage collaboration and learning among employees. This means that you need to foster a culture of teamwork, knowledge sharing, and innovation, where employees can learn from each other, exchange ideas, and solve problems together. You also need to provide opportunities and resources for employees to develop their skills, competencies, and potential, such as training, mentoring, feedback, and career paths. You also need to celebrate and reward not only the results, but also the efforts, experiments, and failures that lead to learning and innovation.

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Ioanna Mantzouridou Onasi

Unstick deals by mastering multi-stakeholder conversations with AI- Powered Coaching I Co-founder & CEO of Dextego I Gen Z Founder
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Nurturing a collaborative and learning-driven environment in your performance management system goes beyond just fostering teamwork and knowledge sharing. It involves creating platforms for cross-functional projects, where diverse skill sets converge to tackle challenges from various angles. This approach encourages employees to step out of their silos, explore different perspectives, and co-create innovative solutions. By intertwining training initiatives with real-time problem-solving, you empower individuals to apply new skills in practical scenarios and reinforce a continuous improvement mindset. We at Dextego can help you do just that through personalized scenario based challenges.

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4 Involve and empower employees

A fourth way to innovate your performance management system is to involve and empower employees in the process. This means that you need to give employees a voice and a choice in how they set their goals, receive feedback, and improve their performance. You also need to trust and support employees to make decisions, take risks, and pursue their interests and passions. You also need to solicit and act on employee feedback and suggestions on how to improve the performance management system and the organization as a whole.

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5 Use technology and data

A fifth way to innovate your performance management system is to use technology and data to enhance and streamline the process. This means that you need to leverage digital tools and platforms that can help you collect, analyze, and communicate performance data and feedback, such as online surveys, dashboards, and gamification. You also need to use data and analytics to identify performance trends, gaps, and opportunities, as well as to tailor and personalize your performance management interventions and solutions. You also need to ensure that your technology and data are reliable, secure, and ethical, and that they complement rather than replace human interaction and judgment.

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6 Monitor and evaluate

A sixth way to innovate your performance management system is to monitor and evaluate its effectiveness and impact. This means that you need to track and measure the outcomes and benefits of your performance management system, such as employee engagement, satisfaction, productivity, retention, innovation, and customer satisfaction. You also need to review and revise your performance management system periodically, based on the feedback and data you collect, as well as the changing needs and goals of the organization and the employees. You also need to communicate and celebrate your performance management achievements and challenges, and share your best practices and lessons learned.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Indira Zhunusbay, Senior HR - International? (SPHRi?)

Human Resources Management | People Performance | Employees Skills Assessment and Training | Talent Management | Employer Brand and Corporate Culture 18+ years in creating engaged workforce cultures and nurturing talents
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To foster talents engagement and innovation, reimagining the performance management process is crucial. HR's role transcends innovation; it includes assuaging employee concerns about future promotions and growth. By providing clear projections, open communication, and well-defined succession plans, HR can enhance transparency and alleviate uncertainties while bolstering a culture of advancement to mitigate turnover rates of demotivated employees left with no promotion or being unvalued…

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How do you innovate your performance management system to engage employees?

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1 Align goals and feedback

2 Embrace flexibility and diversity

3 Encourage collaboration and learning

4 Involve and empower employees

5 Use technology and data

6 Monitor and evaluate

7 Here’s what else to consider

Employee Engagement

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