{"id":100075,"date":"2023-10-03T12:57:33","date_gmt":"2023-10-03T19:57:33","guid":{"rendered":"https:\/\/www.betterworks.com\/?p=100075"},"modified":"2023-12-17T16:04:22","modified_gmt":"2023-12-18T00:04:22","slug":"implement-generative-ai-in-performance-management-2","status":"publish","type":"post","link":"https:\/\/www.betterworks.com\/magazine\/implement-generative-ai-in-performance-management-2\/","title":{"rendered":"3 Steps to Thoughtfully Implementing Generative AI in Performance Management"},"content":{"rendered":"\n<p>Companies across industries are eagerly experimenting with generative AI (GenAI) to deliver better outcomes for customers and improve internal operations. But it\u2019s one thing to have GenAI streamline tasks and generate content; it\u2019s another to use genAI-powered tools for something as personal as performance management.&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.betterworks.com\/magazine\/3-steps-for-successfully-launching-your-performance-management-program\/\">Performance management<\/a> outcomes can be career-changing, affecting employees\u2019 career development, compensation, and future within the organization. Because there\u2019s so much at stake, your workforce may hesitate to embrace or trust GenAI\u2019s influence on performance processes and outcomes. To resolve management\u2019s and employees\u2019 natural reservations and make the best use of new technology, you need a concrete and careful plan for implementing <a href=\"https:\/\/www.betterworks.com\/magazine\/ai-performance-management\/\">AI in performance management<\/a>.&nbsp;<\/p>\n\n\n\n<p>These three steps will help organizations thoughtfully apply GenAI to support managers in the performance management process.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-organize-an-internal-ai-council\">Organize an internal AI council<\/h2>\n\n\n\n<p>A change as big as embedding GenAI \u200cin the flow of work requires several different perspectives to get it right. Bring internal stakeholders together in an AI council to drive the effective adoption of AI within the business. Include representatives from HR, legal, security, IT, and finance to evaluate use cases, consider possible consequences, and develop solutions. One imperative of the council is to come up with an AI policy and guidelines in line with leadership&#8217;s perspective on AI.<\/p>\n\n\n\n<p>Every organization will apply AI differently. Define use cases for AI within <em>your<\/em> business, and especially within your existing performance management processes. Prioritize the obvious use cases where AI can have the biggest impact by simplifying processes and adding efficiencies for quick wins.<\/p>\n\n\n\n<p>For example, you can make a strong case for GenAI\u2019s use in summarizing performance conversations and feedback, drafting growth plans, and aligning employee objectives with company goals. Using GenAI to summarize past feedback saves managers time they\u2019d otherwise spend sorting through content themselves and eliminates the bias toward recent events that are fresher in the manager\u2019s memory.&nbsp;<\/p>\n\n\n\n<p>As a group, set criteria to look for in AI tech tools. Consider how you <a href=\"https:\/\/www.betterworks.com\/magazine\/kevin-oakes-ai-governance-involve-hr-in-these-discussions\/\">plan to apply AI<\/a>, safety and security features, privacy, reliability, and user experience. For example, consider the question of bias: Look for vendors who are taking steps to neutralize bias, such as by anonymizing or de-identifying the data. If HR tech tools don\u2019t feed bias triggers (like names and pronouns) through the algorithm, then the output will be more objective.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><strong><em>&#8220;Every organization will apply AI differently. Define use cases for AI within your business, and especially within your existing performance management processes. Prioritize the obvious use cases where AI can have the biggest impact by simplifying processes and adding efficiencies for quick wins.&#8221;<\/em><\/strong><\/p><\/blockquote><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-selectively-test-genai-applications\">Selectively test GenAI applications<\/h2>\n\n\n\n<p>Applying GenAI to performance management is a big change, and one that managers and employees may hesitate to accept. Once you\u2019ve identified the best use cases and evaluated vendors, the next step is to test GenAI\u2019s ability to meet your desired use cases.<\/p>\n\n\n\n<p>Roll out AI performance management tools to a pilot group, such as a single team or department. Test these tools\u2019 abilities to integrate with existing tech and pull data in from the right places for the most accurate results. Does the GenAI tool integrate with Slack or Teams, or wherever managers and employees converse throughout the day? Can it recognize performance feedback in the flow of work and bring that data into the performance management system?<\/p>\n\n\n\n<p>During the pilot phase, HR leaders must keep a close eye on the types and quality of output AI-driven performance management tools are generating \u2014 an essential step to building trust in performance management tools across the workforce. Use your pilot program to test AI-generated output for accuracy, reliability, and applicability.&nbsp;<\/p>\n\n\n\n<p>Solicit feedback from pilot users to assess how effectively AI tools helped the performance management process to be more efficient and people more effective. Ask managers and employees whether they find the tools to be user-friendly, how actionable their output is, and whether AI tools support <a href=\"https:\/\/www.betterworks.com\/magazine\/how-to-evaluate-manager-effectiveness-and-hold-managers-accountable\/\">manager effectiveness<\/a>, for example, by helping managers to provide precise, comprehensive, and constructive feedback.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-train-users-to-approach-genai-output-with-caution\">Train users to approach GenAI output with caution<\/h2>\n\n\n\n<p>No matter how accurate and reliable GenAI tools are, they are not perfect. There is always a risk of errors and inaccuracies with GenAI, which is why it\u2019s essential to keep humans in the loop. People provide the oversight and ensure the output is accurate. GenAI should always serve as a co-pilot whose results are ultimately reviewed and judged by its human handlers.<\/p>\n\n\n\n<p>One of GenAI\u2019s best features is its ability to pull together unstructured, written performance feedback and summarize it effectively to help managers have better conversations with employees. However, managers need to know how to spot potential errors or biases in its output. If the algorithm doesn\u2019t account for planned parental leave, for example, it may appear that one employee achieved far less than their colleagues in the same year even though they were out for much of it.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><strong><em>&#8220;One of GenAI\u2019s best features is its ability to pull together unstructured, written performance feedback and summarize it effectively to help managers have better conversations with employees.&#8221; <\/em><\/strong><\/p><\/blockquote><\/figure>\n\n\n\n<p>Train users to assess, edit, and finalize AI-generated output\u200c. Managers can provide additional context to flesh out AI-driven feedback summaries to create more nuanced, actionable feedback for employees.<\/p>\n\n\n\n<p>By taking a thoughtful approach to implementing GenAI rather than jumping on the bandwagon, you increase your chances of successful implementation and better outcomes.&nbsp;<\/p>\n\n\n\n<p><em>Interested in learning more? Find out <\/em><a href=\"https:\/\/www.betterworks.com\/magazine\/kevin-oakes-ai-governance-involve-hr-in-these-discussions\/\"><em>how HR can lead in the area of AI governance<\/em><\/a><em> to safely and securely innovate with GenAI.<\/em><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><em>Arnaud Grunwald is Betterworks\u2019 chief product officer who is the master builder of the company\u2019s product innovation, development, and road maps \u2014 ensuring that the user experience is as delightful as possible, brings value, and is lightweight for employees, managers, and HR leaders. He was the co-founder and CEO of Hyphen, an employee listening and engagement platform that was acquired by Betterworks in 2020.<\/em><\/p>\n\n\n<div class=\"lazyblock-post-resource-cta-1TaCrs align  wp-block-lazyblock-post-resource-cta\"><div class=\"custom-post-resource-box\" style=\"background:url('https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/Performance-Software-Innovations-Shaping-2023-BG-Image-1200x680-1.jpg;') no-repeat center;background-color:;box-shadow: 0px 0px 18px -5px ;background-color:\">\n  <div class=\"custom-box-heading\" style=\"max-width:500%;\"><p style=\"color:#ffffff;font-size:36px\">HR&#8217;s role in AI governance<\/p><\/div>\n  <div class=\"custom-box-cta\" style=\"\"><a class=\"et_pb_button\" href=\"https:\/\/www.betterworks.com\/magazine\/kevin-oakes-ai-governance-involve-hr-in-these-discussions\/\" style=\"color:#2A445E;background-color:#ffffff;\">Read now<\/a><\/div>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Want to make the best use of generative AI in the flow of work? Here are three steps for thoughtfully applying GenAI to support performance management.<\/p>\n","protected":false},"author":135,"featured_media":100076,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[3559,3515],"tags":[],"featured_location":[3570],"industry":[],"class_list":["post-100075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai-people-analytics","category-betterworks-insights"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.1 (Yoast SEO v23.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Apply Generative AI in Performance Management - Betterworks<\/title>\n<meta name=\"description\" content=\"Want to make the best use of generative AI in the flow of work? 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