The future is always a lot closer than it actually seems. That's especially true in today's business environment, which is continuously being reshaped and disrupted by technology. Even human resources has felt the impact of new software and ways of thinking about performance management. It's been a steady evolution: The Harvard Business Review noted that where once accountability was the dominant theme in performance management (ratings, rankings and annual appraisals), organizations are increasingly adopting new structures that allow them to marshal productivity while also focusing on workforce development and engagement.
This burgeoning trend has fostered the popularity of human-based approaches to talent management, like continuous performance management (CPM). Employees crave feedback and communication, not only to get their day-to-day jobs done, but also for career direction and personal improvement. CPM, and other like-minded approaches are used to balance the practical requirements of office management, while also giving employees and managers tools to their own success.
This is important because the trends driving CPM dovetail closely with those in overall performance management. Here are four future talent management considerations to look out for:
1. Corporate social networks
Social media has already proven to be highly useful to brands looking to engage with consumers, and the same effect carries over to companies and their employees. The National Business Research Institute said up to 60 percent of companies have their own social networks, and used Microsoft's Town Square and Best Buy's Blue Shirt Nation as examples. These networks can have a big effect by facilitating communication and employee recognition. Building a bespoke social network from the ground up isn't the only option, however. Workplace by Facebook', for example, offers employees a familiar interface, and corporate users a way to customize their network to reflect culture.
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2. Greater generational diversity
Millennials are already the most represented demographic in the workforce, but they're far from being dominant. Gen Xers are still very much in the mix, while Gen Z talent (those born around 2000) is starting to graduate college and enter the labor force in droves. This generational mix is also impacted by the fact that more baby boomers are staying on in their jobs because of financial factors. What this all adds up to for businesses is an office rich in generational diversity, which is at once a good thing and a complicated balancing act. While companies can depend on older employees to mentor younger ones, for instance, divides in cultural thinking and professional practices of different generations could prove difficult to address. Managers will need to become more aware of mitigating these differences, as well as leveraging the strengths of a diverse workplace.
3. Employee experience
Most of the time, it's the customer experience that gets attention; but the new trend in performance management worth looking into is the employee experience. This catch-all term relatively refers to the very first interactions an employee has as a job applicant with the company through to their continued employment. The experience encapsulates the culture they encounter, the environment they work in, the recognition they are given, the people they work and socialize with and the personal gains they can derive from their job. Shaping a high-level employee experience means at different times catering to individuals (done through more frequent check-ins) and creating an atmosphere that everyone can take part in and enjoy.
4. Linking HR data with non-HR data
Companies generate massive amounts of data in every corner of their operations, including HR and talent management. On its own, that data can be valuable in benchmarking performance and helping address individual needs; when combined with data collected from all other areas, businesses could potentially unlock new benefits and insights. The un-siloing of companywide data was recently brought up by TechTarget, which said combining HR intelligence with data from ERP or financial systems could allow leaders to more proactively manage talent and drive performance.
Whenever looking forward to the future of HR and performance management, there's always one constant: software. Digital solutions are needed to support CPM initiatives that emphasize greater communication and more frequent feedback. For more information on what improvements your business may need to make to IT infrastructure, contact BetterWorks today.