This is part 2 of our blog series on Human Asset & Performance Management. Click here to read Part 1 of the series.
As organizations look to evaluate performance management processes and shift to a continuous performance review process / system, the questions often asked are, “What is a continuous performance review and what has changed to require a fresh approach?”
Are we getting what we need from our current review process? If not, is it time to finally reconcile performance reviews with today’s business and work reality? If business is forward looking, why are our performance review processes backward focused? Continuous performance review is a forward-focused management process, and not an HR process. We must shift our paradigm. Yes, HR is involved, but managers are responsible and accountable for the process. Gone are the days of saying, “HR is making us do these performance reviews.” You are doing reviews because it’s right for your business and for your employees.
Yesterday’s Performance Management Process: Assessment
Performance management was done out of HR as a year-end review process focused on pay and promotion. It was a way to rate /assess people and their past performance.
Today’s Continuous Performance Review Process: Development
The continuous performance review process is the responsibility of managers and leaders in functional areas related to personal growth and productivity focused on organizational goals. It is a way to improve and coach people to achieve business results. It is a management tool.
A Digital Platform
A present to future-focused continuous performance review process needs a digital platform to capture information and both apply and embed best practices. Jobs are changing much faster than in the past, based on market pressure and demands. A digital platform, that is universally accessible and immediately responsive, is how you manage the employee development process in a fast-paced world. As leaders, is it your responsibility to ensure that employee skills do not become obsolete but stay aligned with future business needs. Employee development has become a strategic business imperative. Below are the best practices that a robust continuous employee development process, captured by a digital platform that is tracked and measured, include:
Best practices require:
- More frequent check-in conversations between employees and managers
- Monthly goals that are ambitious and aspirational
- More frequent feedback between employee and manager
- Active coaching and development from managers
- Development plans and related activities
- Next assignments and stretch goals
Why change the process? Because continuous learning is now required.
- Learning is key to success.
- Top organizations have a learning culture.
- Training and development is ranked #1 by Millennials. They will leave if they don’t get it.
Why Do We Need a Digital Platform?
A digital platform, with access for both managers and employees, is necessary to monitor and manage the process. With the speed of change happening so quickly, and the strategic need for employee skills to stay current and relevant, how else can you guarantee the process is being aggressively measured and managed? Right now, digital platforms are commonly used to manage all other aspects of our lives so why not employee development?
Does Continuous Performance Review Work?
Is the new process really worth the effort? Yes, there is an evolution to installing this process. It is not only worth the effort but is also today’s business requirement. Here’s the question, “What’s the alternative”? Is it easy? No. There are two pitfalls you need to be aware of:
- Failing to upskill managers and direct reports
- Failing to adequately invest in change management efforts
We invite you to download our "Human Asset Management Strategy" Checklist, which highlights the criteria needed to evaluate the human asset management strategy of your organization. You can also schedule a complimentary assessment with a member of our team.