Many employers are realizing that their employee performance review process is not as modernized and efficient enough to help support business goals and employee development. Due to emerging technologies and the demand for more progressive work policies, the entire nature of the process is changing.
To identify which areas of your performance review process need to be modernized follow this guide.
What’s Wrong with the Standard Performance Review?
The following items are what’s wrong with today’s employee performance review process for most employers.
- The performance review process is too lengthy
- Manager and employee goals are not synchronized to meet greater company goals
- Many goals identified are simply unrealistic
- There is no plan in place to identify high potential employees
- The review process is not happening enough to meet the demand of today’s workers
How to Modernize the Employee Performance Review Process
Now that we identified where there are areas of improvement in the employee performance review process, let’s talk about some tips that will help employers improve upon them.
Tighten up the review process by streamlining it
To avoid those long and taxing meetings between the manager and employees during the process, a strategy of effective communication between the two entities should be enhanced. Employers can support the entire process by normalizing these two strategies:
- Establish a true process: Often times, there is a lack of communication between the company, manager and employee on performance review expectations. Because of this, it’s easy for the process to fall apart. By getting everyone on the same page, employers should establish a few rules and requirements for managers and employees to follow. Those should include by setting:
- Workplace performance goals
- Plans of action
- Specific steps to keep everyone on the same page
- Have an outline readily available: With an established outline or document, it allows for both managers and employees to know what to expect during the process as well as gives each party a baseline on how to run an effective performance review
Establish performance goals to support department, company and employees
The purpose of employee performance reviews is to set short and long-term goals that support both the needs of specific departments as well as the overall buisness objectives for the entire company.
The goal-aligning process should be determined by both the manager and the employee that supports task-based goals, company targets, professional development and more. With each department aligning goals to build success, it helps the entire business get on the same page. From Marketing to customer service, IT to accounting, when everyone can see the bigger picture and has attainable goals to reach them, they are more likely to try to reach them.
Set realistic employee performance goals
A proven, yet sometimes unremembered process to create goals that managers and employees can agree on comes from the SMART model. This acronym is defined as:
SMART goals are great for those employees who thrive on instant feedback. With Millenials and Generation Z making up most of today’s workforce, the need for immediate feedback is a must.
An example of a SMART goal for someone an employee in customer service might look like this:
Goal: Return all missed dialogue opportunities with clients within 24 hours
This goal has a specific task outlined, an expected time frame and is within the skillsets of an employee in this department.
Determine who has leadership potential during the review process
One of the greatest achievements an employer can attain is when they identify and groom their future leaders internally. The best businesses don’t just hire the best talent, they also keep them motivated and engaged during their time spent working. Although employers should be giving on-going feedback to boost morale and keep employees happy, the performance review process is the stage to really let these high performers know that the future is them.
During these meetings, it’s important employers give bonuses, raises and/or promotions to the individuals who are identified as high performing. This time can also be used to talk about what a succession planning process would like for them.
Aside from the main performance review, bite-sized meetings help everyone improve
This is especially true for the Millennial workforce. This age-group of employees demand more conversations and engagement from their superiors. Creating more regular opportunities to discuss performance can be quite monumental to those who need the feedback to perform at their best.
Employers and managers should be implementing weekly one-on-ones, and/or monthly meetings to reconnect with employees to give them feedback on how they are performing while also seeing how they are doing overall, and to check to see if they have any questions or concerns that need to be addressed. Typically, since these conversations are on-going, employees and managers will be able to get on the same page to make whatever improvement is needed quicker.
InfinityHR Performance Management
The InfinityHR cloud-based Performance Management module allows for the collaboration of mutually agreed upon goals and competencies between employees and their managers. The data acquired from this application help for management to better understand the strengths and weaknesses within their teams while allowing employees to retrieve the feedback needed to boost engagement, communication and more within their roles.
The module can be combined with other talent management, HR management and/or ERP systems, platforms, modules and applications.
The full InfinityHR cloud-based HCM platform
Aside from the Performance Management module, the InfinityHR cloud-based platform holds tools to help partners, employers, HR administrators and employees enhance transparency and improve core processes imperative to their overall operations. The platform features the following modules in HR management, talent management and payroll:
- Benefits Management
- ACA Compliance
- Core HR
- Employee Self-Service (Employee Portal)
- Workflow Management
- EZ Sign (electronic signature)
- Employee Record Management
- Payroll Processing
- Time and Attendance
- Talent Management
- Recruitment and Applicant Tracking
- Performance Management
- Learning Management
- Succession Planning