Performance Management should be a 'way of working' rather than traditional ineffective practices!
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
?? Only 1 in 5 employees report that their performance reviews are transparent, are fair or inspire better performance.
?? 2% of CHROs from Fortune 500 companies strongly agree that their performance management system inspires their employees to improve.
?? Only 47% of employees strongly agree they know what is expected of them at work
?? The most common type of performance goals for employees are individual goals (58%). And yet managers rank team and customer goals as more important than individual goals
Progress check-ins are just as important to clear expectations as goal setting, according to a new interesting research published by Gallup using data ?? from 18,665 US employees across all industries.
?The three opportunities to improve Performance Management
Researchers identified three opportunities to improve performance management systems across all industries.
?? Clarify expectations.
Research shows that the most effective goal setting methods do the following:
Collaboratively include employees in their own goal setting.
Add team and customer goals to the mix
?? Inspire progress on goals.
It’s time to flip the script and make performance management a way of working rather than an episodic process focused on logging performance ratings that occur too long after the fact and assume a false sense of precision in a manager’s subjective judgement.
?? Improve performance evaluations.
Performance reviews are a powerful tool for empowering employees to perform and develop. Performance reviews that inspire improvement and personal growth do the following: Assess performance with multiple inputs, Include development goals and Omit pay and promotion conversations.
?The way of Goals setting : Way of working
Researchers found that still 56% of employees formally review their performance goals with their manager once a year or less.
?The approach of traditional annual performance reviews didn’t make sense before and is likely counterproductive in today’s dynamic workplace.
?? Researchers believed that it’s time to flip the script and make performance management a way of working rather than an episodic process focused on logging performance ratings that occur too long after the fact and assume a false sense of precision in a manager’s subjective judgement.
?Lack meaningful discussion between Managers and Employees
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Researchers found that progress on goals accelerates when organizations:
1?? Revisit goals during quarterly progress conversations. Employees and their manager need to revisit goals frequently to ensure those goals are still meaningful and realistic.
?? When employees have quarterly progress checks, they are 90% more likely to be engaged and 2.1 times as likely to feel the process is fair and transparent.
2??Integrate team check-ins with quarterly goal progress conversations.
Researchers noticed that the real magic happens when teams are aligned on their shared goals and assume collective accountability for achieving them.
Team and customer goals make little sense in a one-on-one performance discussion when both objectives require strong collaboration.
?Failure to receive timely feedback
Researchers finally noticed that managers are losing traction when it comes to driving performance by providing frequent, meaningful feedback to their team members.
??Only 19% of employees agreed that they have received meaningful feedback from their managers during the last working week.
?? ???? ???????????????? ????????:
This insightful Gallup research on performance management clearly shows that the goals setting system must be modernized and the introduction of Customer goals into employee objectives is an excellent idea while keeping individual goals. As researchers highlighted, by adding team and customer goals to performance scorecards, employees are far less likely to focus on their own priorities at the expense of their customers and teammates.
Thank you ?? Gallup researchers team for these insightful findings:
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Director of Research and Strategy, Workplace Management at Gallup
10 个月Nicolas BEHBAHANI thanks so much for spotlighting this important research. It’s an honor to be part of a community that shares such rich dialogue about improving organizations and the lives of their employees and their customers in the process. I always enjoy your carefully curated insights. Thank you all for sharing your thoughts!
Manufacturing & Business HR at Motherson Group | Certified ODI Professional | Qualified Six Sigma Black Belt | Hard-core Engineering Recruitment | HCM | EMS-OHS & Statutory Auditor | IR-Liaison | Greenfield Project |
10 个月Useful tips, thanks for sharing
Program Project Management | Product Management | Consulting | Presales | Business Development | Banking | AI Profession Leader | Cloud Leader | PMP | CSM |
10 个月It would be worth, by first doing a retrospective on existing performance management practices to make it more effective and fair, before jumping on to any new ideas, otherwise even the new ideas will just remain a talk and may not solve the issues. For e.g. frequent or quarterly checks/conversations would only help if done with right intent in a fair engaged manner with sufficient time, otherwise it would just be an additional overload on everyone resulting in some tickmark without any benefits (and at times making it worse), creating a wrong causation that new/good ideas didn't work. Some areas to consider for retrospective - intent, effectiveness, execution in spirit (not as a tickmark), fairness, integrity, trust, transparency, etc.
Change Catalyst | Empowering Leaders to scale change through people, purpose and agility ? Author Purpose Driven People ? Keynote Speaker ? Enterprise Transformation ? Obeya Coach
10 个月Absolutely insightful Nicolas BEHBAHANI and the data does say enough that the performance system can and should be modernised. As Peter Senge says: Todays problems come from yesterday's solutions. So, if we wait a long time to give and receive feedback, evaluate, have checkins, we often don't remember what the feedback is about and don't learn from the mistakes made or why something worked well. I work a lot in organisations with visual management, an OKR system connecting teams to the overall strategy and an organisational rhythm with quarterly feedback loops and reviews. Some of the responses of employees and leaders after just working 1 quarter with this system: 'Far more aligned; Focus; Now I know how we can contribute to the overall goals; We now work as a collective.'?Do I need to say more?
Head Human Resources
10 个月Thank you Nicolas BEHBAHANI for sharing this research. To modernize performance management strategies, organizations should evaluate adopting balanced scorecard framework, aligning individual goals with organizational objectives for clarity and coherence. Encouraging employee participation in goal setting fosters ownership and accountability, while including team goals promotes collaboration and collective achievement. Emphasizing behavioral competencies, alongside performance, is also essential. Furthermore, conducting regular check-ins for ongoing feedback and coaching allows for timely adjustments, while providing flexibility for goal modification ensures agility and responsiveness to changing circumstances. These strategies collectively drive employee engagement, enhance organizational effectiveness, and foster sustainable growth and success.