\u201cConnecting the Dots: A New Model for People-Centric Performance Management.\u201d<\/a><\/span> \u201cThey need some kind of process, and they realize the old processes aren\u2019t going to do it in this new environment. They are searching for something different.\u201d<\/p>\nCheck out these highlights from Harris and Dennerline\u2019s conversation about how performance management is changing, and how you can develop better processes for managing performance in your workforce.<\/p>\n
A focus on the future<\/h2>\n
Sapient\u2019s research found that only 68% of companies currently have a performance management approach or application, according to Harris. That\u2019s down from 75% the year before, and the decline stands in sharp contrast to increases Sapient saw in learning, onboarding, and other categories.<\/p>\n
\u201cOur take on this is that people actually were making the decision to stop using performance management systems,\u201d Harris said. The pandemic forced companies into remote workplace situations that overwhelmed managers and employees. People were experiencing burnout, and adding a traditional performance management process wasn\u2019t seen as contributing value.<\/p>\n
Beyond not adding value, the traditional annual review could actually do more harm in this environment than not having a performance management system at all. There\u2019s a greater emphasis today on empowering people to perform at their best, but the annual review undermines that by forcing people into ranking systems that are often demoralizing and rarely (if ever) actionable.<\/p>\n
In today\u2019s fast-paced work environment, managers and employees alike find the most value in frequent, lightweight performance conversations, Dennerline said.<\/p>\n
Wanted: Meaningful, timely feedback<\/h2>\n
About 60% to 70% of organizations are still using an annual or biannual performance management process, Harris said, citing Sapient data. This traditional approach is reactive, often tied to compliance, and belatedly addresses performance issues from a year earlier.<\/p>\n
That\u2019s the \u201cirony of the performance management process,\u201d Dennerline explained. \u201cCandidly, it\u2019s who you like and who you don\u2019t.\u201d<\/p>\n
Proactive approaches are more effective. Check-ins are quarterly or biquarterly conversations between an employee and their manager, where they discuss the employee\u2019s performance, how it\u2019s tied to company goals, and what resources the manager can provide to help the employee improve or progress.<\/p>\n
People want to feel like they are making a meaningful contribution, Dennerline said, to \u201cfeel like they know their work is actually helping the company achieve something.\u201d<\/p>\n
\u201cI think that\u2019s the piece that we\u2019ve lost in this conversation,\u201d Harris added. \u201cWe do a lot of thinking [about the data] we need for the company. I don\u2019t know that we do a lot thinking [about the data] we need for the employee themselves.\u201d<\/p>\n
Using a people-centric frequent feedback model allows you to collect data on individual performance, and then interpret it in actionable ways through one-on-one check-ins between managers and employees. These kinds of conversations empower employees with a better sense of how they can improve moving forward.<\/p>\n
Adapting to remote work<\/h2>\n
Remote work is still relatively new to many companies. Only 6% of companies surveyed by Sapient were predominantly remote before the pandemic; recent research shows that about 30% of organizations currently have 50% or more of their workforce working remotely.<\/p>\n
This shift to remote and hybrid work environments requires a different approach to performance management, one in which everyone can quickly and easily see the top two or three personal goals that will help the company achieve overarching business objectives.<\/p>\n
\u201cIt\u2019s around, \u2018What are you doing now? How can I help you? Do you have the tools you need? How can I lower barriers for you?\u2019\u201d Dennerline said. \u201cIt\u2019s helping them achieve. And, whether you\u2019re home or in an office together, you can see progress.\u201d<\/p>\n
Because the focus is on defining and achieving outcomes, the location where work happens is less of a factor. Employees and managers alike can quickly track progress and address obstacles.<\/p>\n
Using data to invest in employees \u2013 not punish them<\/h2>\n
Dennerline doesn\u2019t believe in employee ratings, a point which he made very clear in the webinar: \u201cIt\u2019s a process that I really never understood when \u2060\u2014 especially if you\u2019re doing a bell curve, a forced bell \u2014 you\u2019re basically saying to 70% of the organization, \u2018You\u2019re mediocre,\u2019\u201d he said. \u201cWhere\u2019s the value in that?\u201d<\/p>\n
Rather than relying on a forced rating system or personal opinions, companies can use performance management data to identify the best performers within their organization. By using data to support all employees, companies take the long view by helping employees stay engaged and feel like they have room to grow.<\/p>\n
By only focusing on high-potential workers, Harris said, employers create unnecessary divisions. \u201cBecause you\u2019re basically just saying we\u2019ve used our data to only support one set of people inside of our organization.\u201d<\/p>\n
Setting transparent goals<\/h2>\n
Transparency is a key aspect of modern performance management models. And it\u2019s often the one that requires the greatest adjustments in mindset by employees and managers alike.<\/p>\n
\u201cIt takes a few quarters before people see value in the change. They\u2019re nervous at first,\u201d Dennerline said. \u201cLike, \u2018I don\u2019t know how to do this lightweight thing because I\u2019ve always done this heavyweight thing.\u2019\u201d<\/p>\n
The benefits of this change are real. Betterworks research finds that attrition decreases, engagement scores increase, and leadership confidence soars. <\/p>\n
\u201cWe have to help you have the courage to know that, on the other side, you\u2019re going to be seen as a hero inside the organization because you\u2019re actually going to have a positive impact,\u201d Dennerline said.<\/p>\n
These conversations aren\u2019t easy, and Harris noted that Sapient research shows that organizations are struggling here. Harris and Dennerline each emphasized the importance of simplicity.<\/p>\n
\u201cOne of the problems is we force conversations, but we don\u2019t necessarily force good conversations,\u201d Dennerline said. Provide managers with the training, system, and resources to have good<\/span> conversations so they can help their team members identify and achieve their long-term goals.<\/p>\nWatch the full webinar to learn more about designing and implementing a new model for people-centric performance management.<\/p>\n
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