Performance Management: Are We Ready?
After the incredible year we had in 2020, it is refreshing to get back to the fundamentals. With changes in schedules and work locations, we’ve been hearing from several organizations looking to take a fresh look at performance management.
According to Harvard Business Review, businesses are moving away from traditional annual, backward-looking reviews to more frequent and future-focused performance discussions. This change in performance management increases employee engagement by providing regular communication between employees and supervisors.
In a constantly changing business climate, goals and objectives may frequently change to meet business needs. This ever-evolving environment reinforces the importance of regular touchpoints with employees. When supervisors and employees communicate with regularity, everyone is on the same page. This supports the business and helps ensure employees stay engaged and committed to the company.
We also know that we have a shortage of skilled workers available regardless of your business. Add to this that Baby Boomers are exiting the workforce in large numbers. According to Pew Research, the Boomers have accelerated their retirements due to COVID. With experienced employees’ exit, businesses lose skills and knowledge at an accelerated pace.
According to HR Magazine, CEOs have increasingly expressed their concern about employees’ skills (53% in 2012 to 79% in 2019). In many cases, our employees are not ready, nor are we. Annual performance reviews will not provide sufficient and timely feedback to help employees develop their skills. If we are to bridge the skills gap, employers must focus on forward-looking goal-setting and “just in time” performance feedback.
We have a great opportunity in Human Resources to support leadership and employees by developing new, flexible, and more agile performance feedback tools. Our future is now here, quicker than anyone could have imagined. We need to be just as fast to create and adapt performance processes that match business needs and employee expectations.
What is your plan for 2021? We can help you develop that plan. Feel free to reach out to us or share your thoughts.