Why traditional performance management no longer cuts it
StaffCircle
Our mission is to help companies transform employee success by combining engagement, performance management & culture.
Without re-banging the same drum, we wanted to revisit the idea of the traditional performance management.?
And how instead of sticking to the same old processes, you should be making changes that modernise and innovate your current performance management.
Can you believe that a recent Gallup survey revealed just 2% of CHROs think their performance management system works?
It’s no wonder really, when we consider the traditional performance management process(es) many businesses still use.
It’s tired. It’s uninspiring. It’s pushing your employees to leave.
Annual appraisals. 9-box grids. Lack of progression.
It’s like we’re all stuck in the 80s with clouds of cigarette smoke and typewriter clicking as background noise.
And the result?
Dwindling productivity, minimal engagement and rising resignations.
Sound familiar?
It’s time to reevaluate your own performance management.
Easing the pressure
Companies are constantly under pressure to adhere to economic, technological and social changes.?
The last thing you need on top of those mounting pressures?
Employees who are unhappy and underperforming.
Organisations that focus on engaging their staff are more likely to retain their top talent and save on recruitment fees.
1 in 3 exit interviews could be prevented thanks to employee-centric automated development tools within StaffCircle.
Plus, in 2022, organisations using StaffCircle had a 57% lower employee turnover rate than the UK average.
What is performance management?
What exactly comes under the performance management umbrella will vary from organisation to organisation.
However, most will focus on four basic elements:
Still up for debate?
What’s the RIGHT process for successful performance management?
Many are stuck in the old ways that just don’t cut it in 2024.?
But here’s some things we should all agree on…
Once a year is not enough
Performance reviews are essential.
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They’re used to set goals and objectives, gain feedback from the employee, give feedback to them and discuss career development.
So why are so many still only doing the annual appraisal and little else?
One opportunity across the whole year where your employees get to word vomit all their latest concerns, motivations, successes and everything in between.
One hour for you to share a years-worth of feedback from multiple people your employee may have interacted with.
And let’s not forget that one concern that happened months ago and has long since been forgotten but now needs rehashing because ‘it’s their annual appraisal.’
Once a year makes sense for some things (birthdays for sure) but appraisals it does not.
Progress as part of the process
Consider career development.
How does your performance management process adhere to individuals’ progression and career aspirations.
Does it align to your succession planning and company goals?
Investing in your employee’s development can improve your retention, ensuring your employees grow with you and are motivated to succeed individually, and as a contributor to overall business success.?
Once you’ve set the goals, it’s important to manage expectations of when they’ll be completed.
And regularly revisit these goals to track progression.
No one wants to struggle to complete their goals without support.
That’s demotivating and unengaging.
Checking in regularly with your employees and their progression, to ensure they are realistic, meaningful, and achievable keeps the process fair, transparent, and engaging.
Take it even further with regular check-ins with the whole team to align departmental goals that are shared.
Shared accountability and success can motivate teams, improving both collaboration and morale.
More than a tick box exercise
Your performance management process should be more than just a ‘tick box exercise’.
Regular reviews and feedback will help this, as you become more involved in your employee’s progress but the review itself should be considered too.?
How are you conducting the process? Is there room for your employee to share their feelings and opinions. Do you know what their current mood towards their job and the overall business is?
?eNPS surveys are a start, but transparent reviews and evaluations where the employee can truly be honest is the best way to ensure your performance management process succeeds.
It’s clear that to be successful in retention and engagement, a performance management process that works is essential.
Because without it – how do you know how well your staff are getting on and how do you know how their performance is affecting overall business success?
Get the right tools and processes in place and you will succeed.
Not sure how to get started or looking for further support? Check out our Ultimate Guide to Performance Management.