Performance management is one of the most critical essentials for a sustainable business. Employees have high expectations in terms of ratings, career growth, and a matching compensation. Leader’s angst is even higher in trying to be fair and balanced.
Performance management evokes memories of pain among leaders, who are not sure about their decisions. I haven't come across a single process where unexpected impulsions haven't occurred. The Leadership often discusses loss of talent or people walking away during the evaluation.
What have we come to?
It seems like we will always have a riddled process. The issues will not let us be accurate. Maybe there's no way to discuss Plan B before Plan A has been finalised. This is an unfortunate circumstance in most organisations, for instance, fast-growing tech companies situated at hub locations, consulting, high talent, and high compensation companies. Even the organisations staffed with younger talent feel this pain more acutely as compared to the others. Being humans our careers are filled with emotion, subjectivity, angst, and dissatisfaction. Consequently, they affect the quality and speed of decision-making.The current processes tend to be subjective and evasive. Biases creep in and create a culture that does not bode well in the long term.
Taking a look at a possible solution...
How do we look at performance management to make the process more accurate? There are some performance management round tables that begin with, “Joe in 2012…” Hold on. We are in 2018 and the year of evaluation is 2018. What Joe did in 2012 is not relevant in 2018. This is a sure sign of association and allegiance bias. Organisations try hard to line up SMART goals.
S - Specific
M - Measurable
A - Achievable
R - Realistic
T - Timely
But subjectivity creeps in and the end result turns out to be anything but smart. How then do we focus on such matters? Additionally, the bell curve has messed up with most employee performance evaluations and compensation platforms. Statistical science and natural phenomena sounded exciting in the beginning. But organisations soon realised that years of implementing the bell curve had left the groups disoriented & disheartened. The bar was being set so high that it wasn’t even visible. Likewise, forcing someone to be rated a 2 when they clearly are a 3 shifted the problem to horse trading. Most organisations, therefore, are moving away from the bell curve.
Making performance management a norm
Frequent meetings put too much pressure. Therefore, many organisation started conducting a yearly process. However, the rate of change in market conditions, business plans and the need to respond faster have thrown notions of the yearly review out of the window. Continuous performance evaluation is now the norm and the need.New age platforms are catering to the new age needs in performance management, like peopleHum. Find out how the nurture pillar of peopleHum can add value. It helps in increasing effectiveness, accuracy, and speed to your performance management process. Conduct One-on-Ones, set goals, and implement continuous feedback cycles. The ones that are objective and driven by the latest advances in machine learning. Help save valuable time, money, and resources by automating. You could measure everything you need to achieve a more aligned and integrated workplace.