For decades, performance management has focused largely on what organisations can get from its employees rather than what each individual need to be successful. This explains the general dissatisfaction with the annual performance appraisal process - a rear-view perspective of employee performance with little or no tie the true pace of work or other talent programmes.
It also explains why a growing number of organisations worldwide are putting their entire talent management strategy under the microscope - not just the appraisal process.
Exploring the need for continuous performance management
A new report entitled Making Ongoing Performance Management a Reality published by People Management Industry Insight, in partnership with Halogen Software, suggests that more employers would benefit from adopting a more continuous approach to performance management. Key findings from the report include:
- 64 per cent of people interviewed reported that transparency and communication in their organisation was average or below average.
- Just 29 per cent of respondents think that their performance management programme is above average, while 42 per cent do not think the process is working well.
- 38 per cent of respondents said their organisation was below average in its workforce planning efforts and succession planning (51 per cent).
The People Management and Halogen report explains the need for organisations to adopt a fully integrated continuous performance management system and what that means for HR, managers, and employees. Without a cohesive talent management strategy, UK organisations will continue to face challenges when it comes to maximising the potential of its talent.
Make continuous performance management a reality
As organisations look at the possibility of redesigning their performance management processes, it's important to have a plan in place that goes beyond performance appraisals. Simply dropping annual reviews and moving towards informal performance check-ins might seem like a good idea, but first and foremost is the need to recognise what is essential to the success of your people and your organisation.
Organisations can get the most out of employees by promoting good performance management tactics that align its talent strategy with its business strategy. As the report notes, continuous performance management enables:
- Alignment between employees and the objectives of the business;
- Leadership development of line managers;
- Identification and nurturing of top talent and potential future leaders; and
- Targeted learning, development, and career growth opportunities.
The purpose of continuous performance management is to constantly monitor and evaluate all talent management areas for strengths and weaknesses. Doing so on pace with the rhythm of work will not only help achieve successful outcomes in the present, but in the future, as well.