Future of Performance Management for HR: How to Measure Performance
When it comes to the job of Human Resources measuring performance from employees, a shift is on the horizon. Instead of annual reviews, there are better ways to quantify an employee’s work ethic, dedication and, most importantly, their performance.
According to the Harvard Business Review:
… the emphasis on accountability for past performance started to fade. That continued as jobs became more complex and rapidly changed shape–in that climate, it was difficult to set annual goals that would still be meaningful 12 months later.
So, what works instead of the traditional way of measuring performance? Here are five other valuable ways.
Coaching and Regular Feedback
To be able to gather vital data on how employees are doing and feeling about their work, coaching and regular feedback is crucial. There’s a huge difference between performance reviews and regular feedback. Instead of a structured review based on outdated criteria, coaching your employees allows them to excel and regular feedback provides them with the tools they need to do better at their job.
Let’s face it, no one enjoys an annual review, but a way to guide your employees is ideal for everyone.
Collaborative Tools
There are many apps and programs that allow you to give feedback in real time. These digital applications often mirror social media platforms and allow employees to enjoy feedback and praise that can often be made visible to peers.
Random Quality Checks
Instead of a yearly review, it is imperative to see more often how employees are performing. Waiting 12 months to look at a worker’s accomplishments often leads to not addressing a problem until it is detrimental to the company. On the other hand, those who are doing exceptionally well are not recognized when they should be.
Cost Efficiency
How quantifiable is your employee when it comes to your business? Measuring an employee’s cost efficiency is a great way to ensure that they are the best fit. A sales employee who is underperforming will cost you more in the long run but they also may simply need additional coaching and feedback. Determining their cost is an excellent way to determine their worth.
Change the Frequency
One way to steer away from the annual performance review is with more frequent reviews, and this doesn’t mean that an employee has to be anxious about constant reviews either. Instead, have more frequent sessions that have an open line of communication. If an employee is not performing well, find out why. If a member of your team is achieving all of their goals, see what you can do to reward them.
These smaller checkups allow you to be more flexible with your team but again, make sure that they are not construed as traditional performance reviews. This is so that your staff does not feel overwhelmed that they are on constant alert. Make it more casual and be prepared to listen.
Make the Transition
It is easy to make the transition from the traditional (and outdated) way of checking an employee’s performance. These ways of doing things are more forward-thinking and less stressful to everyone involved. Not only that, but it opens a better line of communication between the staff and the company, and ensures that problems or achievements are addressed sooner, rather than later.
