The annual system of reviews, appraisals and performance management dates back to post the World War 2 era when the world was trying to get back to normalcy and stabilize the economy. The focus then was mainly to get things back in place and working.
Needless to say that both from a people point of view and a process point of view things have changed a lot since then. And today, in the age of Web 2.0, Mobile 2.0, Employee 2.0, and Enterprise 4.0, it’ll be no less than an anomaly if we do not talk about Performance 2.0.
But what does Performance 2.0 really mean?
Essentially, Performance 2.0 is a reimagination of performance management techniques and ideologies that stem from the overall evolution of the employee and the enterprise.
Primarily because the modern day employee, when enabled through new-age technology, has a whole new set of expectations that enterprise 4.0 needs to meet. Essentially that means suiting the needs of businesses that drive the economy by artificial intelligence, robotics, analytics, data, prediction, knowledge engineering, virtual reality, the blockchain and digital web innovations like IoT.
The employee’s idea and motivation behind going to work everyday is no longer mere survival. Rather, it is to live a life where their skills are honed, valued, and enhanced everyday. Therefore, it is no longer just a matter of hygiene. It is rather an aspect of great strategic importance and value for organizations to carry out relevant, truthful and data-backed performance reviews.
Here are some aspects that essentially sum up what goes on behind the whole shift of the mindset when organizations move to performance 2.0:
Making the right move. From annual to continuous:
For starters: A recent survey found that a staggering 66% of employees would quit if they feel unappreciated at work. And when it comes to millennials, the number shoots up to 76%!
So, why wait for a whole year to tell someone how well they do their job? Or if there is a little extra they could do to excel in it?
With the same thought in mind, a larger number of organizations are moving to a system that is more data backed, continuous, and hence more effective in managing performance for the modern day employees. This for sure is a change in the way performance evaluation has been dealt with in organizations for years now.
And what a welcome change it is!
Essentially because the annual performance review cycle is the professional equivalent of a report card, served to the employee at the end of every year stating their strengths and weaknesses. A continuous system of performance management approaches this in a much more employee-friendly and comprehensive way. It helps them understand their shortcomings well in time so that they can work on them and improve along the way. Not only does being continuous translate to higher efficiency in performance management, it lays the very foundation of a far more employee-centric and conducive environment at the workplace. What is noteworthy here is that how different aspects of new age performance management blend in so seamlessly with engagement and talent management!
Let us see how.
Performance management as an extension of employee engagement:
New age HRMS systems with functionalities like continuous feedback framework, 360-degree feedback, performance journals and more are basically disrupting and redefining how employee engagement works.
For eg., continuous feedback paves way for a constant interaction between colleagues regarding the improvements that can be done at an individual level. This translates to a dialogue of appreciation that facilitates a culture of a constructive discussion at the workplace. 360-degree feedback makes sure that there are stakeholders of an individual’s performance at all levels of the hierarchy which in turn, allows for a more holistic take on performance related feedback for that person. And then features like performance journals allow the employee to document and record every achievement on the way to realizing the greater goal assigned to them. This ultimately helps in conducting fairer, unbiased reviews at the end of the cycle as every detail is accounted for and appreciated.
Therefore, it is no longer about functioning in isolated silos. Modern-day performance management systems that aim to be enablers for your workforce will by default have to be an extension of your engagement methods. By prompting employees to regularly record achievements, ask for & receive feedback; organizations can lay rock solid foundations of a culture that is employee-centric and engagement driven. This ideology has already been hailed for its superiority over the traditional mindset that confines the HR’s role to be a controller. With direct relationships observed between employee engagement and productivity, it is definitely the way forward.
At Darwinbox, our focus has always been to drive better administration of processes and enablement of the employee through our new age vision, and holistic functionalities. Built for product adoption and boosting adherence, the platform has played a massive role in transforming the performance strategy for over a hundred leading brands all over India. Know more