Here are 8 reasons why you should transform you Employee Performance Management process from once a year, to all year. We can help you implement this scheme and reap the benefits of a focused and engaged work force.
1. Employees always know where they stand
Studies show that fewer than half of the employees know where they stand concerning their performance, and how can we expect employees to be at their best if they don’t know where they stand? Ongoing, real-time feedback will provide them with the guidance they need to develop and accomplish your company’s goals continuously.
2. Timely and Actionable Feedback
Giving feedback once a year almost guarantees that it will be vague and largely irrelevant by the time your staff hears it. To perform at their best, employees need feedback immediately after a situation. Whether it’s encouragement or coaching, delivering a timely response helps to improve engagement levels and growth.
3. Constant Opportunities for Development
Imagine if a sports coach waited until the end of the season to provide feedback to his team. The very idea is absurd, right? Leading your team is no different. In our fast-paced business world there must be a consistent stream of feedback throughout the year, so that employees have a chance to improve consistently.
4. Forward Focus
Saving up a year’s worth of critiques is detrimental to morale and often hurts engagement and productivity. Luckily, continuous performance management shifts the focus from past mistakes to future opportunities. Rather than a year-end judgment, you’re now engaging in a year-long conversation. Feedback is focused on minor adjustments instead of overwhelming course corrections, which leads to better outcomes.
5. Managers Enjoy a Richer Picture of Employee Performance
In a continuous performance management process, 360-degree feedback data is collected and accessible throughout the year. Consequently, managers enjoy a much more comprehensive picture of an employee’s actual performance.
6. More Meaningful Interactions
Every leader knows just how stressful it is to go through the administrative work that comes with annual reviews. The extra paperwork and planning can make it difficult to focus on having a proper conversation, which is supposed to be the whole point of this exercise. When feedback is collected and exchanged throughout the year, the review is essentially already over with by the time the two sit down. This allows managers to focus their attention on helping employees grow and work towards their goals.
7. Reduced Recency Bias
A glaring flaw in the traditional review process is the tendency to place too much weight on recent events. This “recency bias,” whether the events were good or bad, can render the reviews ineffective and can often be demotivating. When feedback is exchanged throughout the year as the situations arise, the risk of recency bias is nonexistent, because the feedback was documented transparently and fairly. This translates into happier workers that are more engaged and productive.
8. Improved Ability to Close Skill Gaps
Most businesses cannot always just recruit the needed talent, they must identify and close skill gaps internally. In a continuous performance management process, employees and managers can tackle skill-gaps immediately.