Technology is always changing rapidly and we have to always keep up with it. This mindset is also the same when we look at performance management solutions.
The main goal of having performance management in the first place is to not only track worker’s progress and continual improvement, but also to engage, motivate, and reward employees based no their efforts and contributions. Unfortunately, Deloitte studies shows that only 8% of companies believe their performance management process is highly effective in driving business value, while 58% say it’s not effective use of time.
Your organization needs to measure performance and allocate compensation budgets, but how do you do it? We can start by looking at the current situations. There are some common problems that company face with performance management:
- Business moves too quickly for annual goals to remain static.
- It is common for companies to rate employee performance based on goals set a the start of each year, yet we know that nowadays, market dynamics can turn on a dime. Not regularly revising goals means a company can run the risk of missing good opportunities
- People wait too long to give performance feedback.
- This is similar with the first point. Everyone should know where they stand on a regular basis. If performance issues are not being addressed when they occur, employees will assume that everything is fine which leads to not giving any efforts to improve. Frequency is key in having a successful performance management solutions.
- There is not enough focus on people and relationships.
- The goal of performance management is to build superior performance for the individual and organization. A lot of companies forget that people are the most important aspect and when you have relationships with the people you work with, positive growth in performance will happen
Bottom line : Keep on improving and pick up the broken pieces
Remember, if you want to keep your best talents from walking out of the door, then one thing is clear : The old ways don’t work and it is time to rethink old processes. All we have to do it to face the challenges, embrace the positive solutions, and watch the performance of our people improve.