As 2009 draws to a close, many of us tend to look back on the year and consider the possibilities for the next one. What will 2010 bring?

The need for innovation is something we hear about all the time; the ability of businesses to rebuild through the downturn may rely on it. Innovation extends from research and development to the boardroom, to the shop floor and to human resources. Michael Rendell of PricewaterhouseCoopers suggests, “Successful companies in the future will be those that have innovated around recruitment, around retention and around learning and development.”

In the past year, we saw an explosion in the use of social networking for recruitment and we even saw some organizations use it to support learning and development. During 2009, we saw companies struggle with cost-cutting measures and--at the same time--work to improve retention, engagement and productivity. In some cases, learning and development budgets were cut in 2009, but the understanding of the critical need for skill development and knowledge building never went away. 

The following factors may play a role when it comes to innovative performance management:

-some organizations have no central workplace and operate virtually
-some employees work with co-workers who they rarely see face to face
-some employee teams are made of individuals from around the world who bring diverse skills and experience to the table, along with different expectations for their work-lives
-accountability has become more important than ever
- strategic directions, goals and employee efforts must be flexible enough to respond to economic conditions that can change at the blink of an eye
-work and life boundaries continue to blur
-in a fast-paced world, employee turnover can be staggering
-competition for jobs is fierce
-learning and development is a never-ending process

Some possible responses could include: 

-organizations that do not use a technology-based performance management system will adopt one
-goals will have a shorter life and will be reviewed more frequently
-new performance management processes will be created to accommodate high turnover and alternative working arrangements (such as frequent use of contract workers)
-managers will automatically receive ongoing training and support as their role becomes increasingly challenging
-employees will take more control over their own performance history and they will demand feedback and documentation to support personal “portfolios”
-employees will become more aggressive in seeking out learning opportunities at work and if they cannot find them through an employer, they will fund their own learning and development more often
-public records of performance, such as recommendations and proof of past success will become more important

References:

Rendell, Michael and Jon Andrews. Managing tomorrow’s people. PricewaterhouseCoopers [www.pwc.com]. Obtained December 20, 2009.