3 Key Areas To Meet The Challenges Of Performance Management, Now And In The Future

Agile practices are critical for the success of performance management

A recent Gallup study of performance management found that only 21% of employees surveyed strongly agreed that pay and incentives motivated them to achieve their goals. Couple this low percentage with increased employee burnout and attrition rates, the inability to attract and retain talent, and an ever-changing post-pandemic workplace, and it’s easy to see why performance management methodologies are becoming increasingly critical in the modern workplace. It also underscores the critical need to implement performance management tools that are both effective and agile, while addressing the needs of employees.

 

Agile practices are critical for the success of performance management – and more importantly, will support future enablement. After all, the pandemic has forced us to agilely rethink our physical workplaces, retool how we collaborate in a hybrid environment, reconnect with coworkers, and streamline our objectives.

The future of performance management will be a thriving workplace powered by agile performance enablement, powered by the right tools that enable leadership with increased transparency and clearly focused objectives and key results (OKRs) that are understood throughout the workforce, no matter where teams reside.
 
For example: if you “set and forget” OKRs, only bothering to revisit them at the end of the year, are you really managing performance, and do you really have an action plan in place to meet your goals? Likely not. Instead, OKRs must be incorporated into the daily lives of employees, much like a consistent weekly check-in meeting is common amongst managers and their reports.
 
When employed correctly, performance management tools condition organizations to regularly reevaluate their strategy, processes, technologies, and skillsets through regular feedback cycles. As a result, they are more attuned to the adjustments that need to be made to maximize the performance of each employee.

A great example of this is Udemy, an industry leader in online learning and upskilling who redesigned their goal development cycles within their performance management platform – leading to a 27% increase in feedback and participation.

The future of performance management will meet teams where they already are – think updating your objectives directly from your email, giving team recognition via chat tools like Slack, and tracking your weekly 1-1 and team meetings from one consistent location, in the context of your objectives. This is essential for employees who are preferring to work remotely rather than returning to the office, yet are looking for ways to show their value and be recognized for their work, ensuring that remote workers are fully engaged and on point to reach goals will continue to be a pressing issue in the future of performance management.
 
Obviously, smaller organizations will be able to adapt and implement performance management changes faster than larger, more global ones. But it isn’t impossible for larger entities. Here are three key areas to meet the challenges of performance management, now and in the future:

Good manager-employee communication is crucial – especially in a hybrid work environment. It helps define roles and expectations. It refines processes and objectives. It motivates employees, aligns them with strategies, and establishes trust to move goals forward. When each employee’s role, how they fit in the process, and the organization’s desired goals and benefits are clearly outlined and tracked transparently throughout the organization, a successful outcome is far more likely!

Dangling a carrot rarely is effective in getting the best from employees. However, connecting the process to expectations will increase the likelihood of performance goals being met, or even exceeded. Effective communication of performance expectations, goal setting, ongoing coaching from manager to employee, and peer feedback are more likely to ensure higher engagement and a vested interest in the organization’s endgame. Without the advantage of body language and physical energy, exceptional communication in a hybrid work setting goes a long way to compensate and help maintain effective performance management. When employees are given a roadmap to perform well and learn and grow professionally, they become more confident and empowered.

This is especially important for millennial and Gen Z employees. Investing in employee growth and development opportunities, offering career advancement, and helping workers to meet their personal goals will result in increased employee satisfaction and a greater sense of excitement for their roles.

Just as a marathon runner must train daily by extending the mileage to build endurance, organizations should also integrate regular upskilling and learning goals that encourage their employees to grow and gain additional knowledge for their role and future responsibilities. Doing so will build the necessary muscle memory for agility, which is required to pivot and adjust quickly. Strengthening it will keep organizations competitive and employees happy and growing.
 
So whether organizations return to the office full-time or maintain this new hybrid environment, managers will continue to play a vital role in the employee’s experience and performance success.
 
If the pandemic has taught us anything, it’s that human interaction connects, redefines, inspires, supports, and leads. Performance management tools can track your work and feedback, but they must be used regularly, and in tandem with other interactions. The more managers can relate to the individual, the more likely they will be able to optimize the performances of every team member. A united team is one aligned to each other and their mission, enabling them to help execute what matters most to the enterprise!