Human Asset Management Strategy (HAMS)© demands a robust and continuous performance review process focused on employee development. You can't have one without the other.
According to the Harvard Business Review, one-third of U.S. companies are revising traditional appraisal processes. Since change is revolutionizing our work, we must focus on a continuous performance review process, where robust, two-way feedback is frequent.
Forces Disrupting Traditional Performance Review Processes
Today's work reality is challenged by multiple and constant disruptors putting pressure on organizations and their foundational structures, processes, and people. For the near term, one thing is sure - these disruptors are not going away. They are our new normal. We must account for these disruptors as we look at our human assets, how we manage them, and their responses/reactions to these disruptors. The following are some main disruptors:
- Millennials comprise more than half the workforce, and Boomers are working into their 70s and 80s.
- AI and digital technology are everywhere, disrupting business models and changing both the workplace and how work is done.
- The rate of change has accelerated.
- Continuous employee review processes must become more flexible, employee-centric, and aligned with the rapid pace of change.
- Younger workers demand rapid career growth and flexible workplaces.
Where Has the Increased Productivity Gone?
According to the Bureau of Labor Statistics, business productivity has not kept up with technology. If the old performance reviews were effective, productivity would have increased dramatically. This, however, is different. If these cumbersome performance review processes need to be fixed to increase productivity, what good are they? It's time to rethink the purpose of performance reviews, how we do them, and whether the intended outcomes are achieved. According to the Bureau of Labor Statistics, here is an assessment of the old performance review processes in the new world of work:
- Organizations need to get more outcomes per hour worked.
- Employees are working more and getting less work done.
- Employees are overwhelmed by technology.
- Productivity must go up. Employee engagement is flat or down.
- We have shifted to a service economy where skills matter, and people are your product.
- Jobs are shifting to skills that are essentially human, like creative, team, and service jobs.
- Future jobs are collaborative and human-intensive, but how do you measure these skills?
- Employees now operate in cross-functional networks with people working in cross-functional, collaborative teams.
- Employee skills are changing or eroding every two years.
The New Work Reality
Align your organization's current work environment with a relevant and aligned continuous employee review process designed to mirror, reinforce, and keep pace with your organization's business strategy.
We invite you to download our latest eBook: "Human Asset Management Strategy: A New Approach, which provides a multifunctional operational guide to human capital capacity planning. You can also schedule a complimentary assessment with a member of our team.
