Human resources can sometimes be unfairly characterized as more concerned with rules and regulations than actual employee engagement. What's more, advances in technology have hyped AI and big data as the future. However, human-centered approaches to performance management continue to win rave reviews from leaders and generate real gains in workforce development and productivity.
Specifically, continuous performance management (CPM) has grown increasingly popular with businesses of all types. There's much more to performance management than annual reviews, and organizations are seeing the benefits that consistent feedback and supportive peer and manager relationships can have on the office. And as a recent study concluded, such human-based performance management strategies can also have a positive effect on retention and recruitment. When employees get honest feedback and feel listened to, the advantages can be widespread.
Frequent check-ins can drive performance and growth
While all performance management is human-centered in some way, CPM and like-minded strategies that stress engagement, interaction, recognition and communication really put the emphasis on the human element. When companies position their missions and values to conform with these ideals, they can more effectively drive performance and create cultures that employees value. In such fostering environments, managers and employees can talk more honestly about motivations, struggles, strengths and other performance factors. On the other hand, static strategies that rely on annual reviews and infrequent engagement can't deliver the same type of intelligence and bonding, and that can be a really hamper on performance management.
According to a survey from the Society for Human Resource Management and Globoforce, just 51 percent of 738 HR leaders said their current performance management processes are accurate. Yet respondents who conducted frequent check-ins were 1.5 times more likely to accurately asses employee performance. Such higher performing organizations leveraged ongoing peer feedback and regular check-ins, which 89 percent agreed had positive impacts on their workforces.
"As our study shows," said Derek Irvine, vice president of strategy and consulting, Globoforce. "HR professionals are still dissatisfied with the accuracy of traditional performance reviews. Reward and performance strategies need to be reimagined so they help fulfill employees' basic human needs of appreciation and connection. Social recognition programs alongside more human-centered practices have the power to not only strengthen relationships between employees, but also employees' overall connections to the companies they work for."
Recruitment and retention also improved with CPM
Unsurprisingly, recruitment and retention was the top workforce challenge cited by 47 percent of responding HR leaders – making it top of the list for the third straight year. And as a means to tackle it, more are looking toward CPM as a solution. The survey found employee recognition programs (one piece to the CPM puzzle) have a massive effect. Eighty-nine percent said recognition efforts boosted both employee relationships and the employee experience, while 85 percent saw positive direct effects in organizational culture and 84 percent saw improved employee engagement. When such workforce metrics are high, existing employees are more inclined to stay, while prospective talent is more likely to sign on.
There's a wealth of growing evidence that human-based performance management approaches like CPM can pay real dividends across the business. Whether those benefits arrive in the form of enhanced project collaboration, a more supportive peer environment or cultural buy-in from the grassroots level, it's clear human-centric strategies are the way to go. For more information on what solutions and tools it takes to implement CPM in your workforce, contact BetterWorks today.
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