Both the hybrid model and teleworking have brought improvements for both companies and employees. Over the years, organizations have had to change the way they perform some tasks, such as performance management, which is much more difficult now that they are not operating in completely physical environments.
Although an organization’s leaders and human resources staff have performance data on the employees being evaluated, the methodology has changed. A number of metrics have now been incorporated and others have been dropped in order to have a clearer approach given the current circumstances.
To sum up:
- Performance management conducts frequent evaluations on the performance of an organization’s employees.
- The process is based on three phases: planning, monitoring and evaluation.
- Beyond improving business profits, it serves to improve productivity and identify and retain talent.
- Currently, the process is supported by digital technologies and solutions to automate part of the methodology.
What is performance management ?
It is a systematic and continuous process to improve the efficiency and effectiveness of workers in organizations. It performs a regular assessment of employees’ competencies and skills. In this way, it makes possible:
- The identification of opportunities for improvement.
- The assignment of clear objectives and goals.
- The creation of a feedback flow.
- The professional development of the members of the organization.
The main objective of performance management is to maximize the potential of employees and the long-term success of the organization. On the horizon is the scalable growth of the company and making it more resilient to possible crises.
The first formal performance management systems date back to the First World War. During armed conflict, armies would run reports on each of their soldiers to assess their capabilities and establish how they were most useful to the group.
How to manage performance
All organizations aiming to improve their productivity perform performance management. Performance management not only gives them an overview of their business, but also reveals problems that may be hidden from the eyes of decision-makers.
The process is structured in three distinct stages: planning, monitoring and evaluation. In its conception, implementation and follow-up, the following must be taken into account:
- Objectives. These established goals must be clear, measurable and achievable for each employee or department.
- Continuous evaluation. A regular and objective follow-up of the employees’ work. A positive and constructive feedback process is established in the process.
- Communication. Continuous, open, two-way contact must be maintained with employees. Both what is being done well and where there is room for improvement must be brought to the table.
Companies must ensure that employees are aware of their responsibilities and performance expectations, since according to a Gallup report, only half of employees are aware of them.
- Professional development. Employees must be provided with opportunities for growth and development, allowing them to acquire new skills and knowledge.
- Recognition and rewards. In line with the previous point, employees who contribute to the company’s development should be recognized and rewarded.
- Monitoring. This consists of periodically monitoring the results of individuals and teams, making adjustments when necessary based on these results.
- Engagement. Performance management seeks to foster the bond between employees and the company and its mission, motivating them to achieve their objectives and improve their performance.
The ultimate goal of performance management is not to improve corporate profits. Fostering talent and increasing productivity are the focus that must be maintained when carrying out this task. This idea takes on value when you consider that according to LinkedIn Learning 56% of companies are struggling to retain their talent.
A very frequent problem in organizations is that the definition of objectives and evaluations is done only on an annual basis. Not only does this method mean that some problems take time to be identified, but also that employee engagement is lower than if it is done more frequently.
How to manage performance in hybrid and remote models ?
The fact that presence in offices is no longer mandatory in many organizations has also changed the way performance management is done. The approach has changed and the data on which this work is based is more objective than ever, relying on technology to do so.
For employees using these models, it is essential to strengthen communication. It is necessary to ensure that they are aware of the advances, needs and changes in the organization so that they can have all the possible information that affects their work.
In this new scenario, performance management software comes into its own. It contains a large amount of data on employee performance and is integrated with other programs that are a source of information. These solutions are usually managed by the Human Resources department and allow:
- More easily recognize talent within an organization.
- Avoid losses by identifying inefficient systems or practices.
- Establish standardized systems for compensation, promotion and termination.
- Inability to demonstrate that these decisions are legally justified.
Today’s systems make use of Artificial Intelligence, machine learning and the cloud to optimize the process. These technologies facilitate the collection, processing and analysis of large amounts of data necessary for proper performance evaluation.
These tools allow monitoring data in real time, avoiding annual reports in order to take action. Performance management systems provide complete and continuous feedback to all members of the organization.
By having the KPIs (Keyword Performance Indicators) of each employee, it is possible to perform a self-assessment. In this way, you will know if you are close to achieving your goals or if, on the contrary, you should make more effort to achieve them.
Today the performance management process is more informal than before the pandemic. Interaction between leaders and teams is more frequent, and tracking achievements and issues is easier than ever because of the plethora of tools that collect and analyze them.
Controlling to retain talent
Performance management is a process by which an organization sets goals for its employees, monitors and evaluates them. Traditionally, these have been limited to annual performance reports, but today’s technology allows real-time tracking for quick action.
The goal of this process is not to improve the bottom line. The fundamental objective is to build employee loyalty and identify internal talent. These systems can foster growth and development opportunities for the most effective employees.
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