“But the biggest limitation of annual reviews—and, we have observed, the main reason more and more companies are dropping them—is this: With their heavy emphasis on financial rewards and punishments and their end-of-year structure, they hold people accountable for past behavior
at the expense of improving current performance and grooming talent for the future, both of which are critical for organizations’ long-term survival.” - HBR, The Performance Management Revolution.
Timely feedback, Inbuilt recognition strategy and, Data integration for better insights is the key to building a transparent performance management system in an organization.
A large number of organizations are moving away from traditional yearly appraisals to more frequent interactions between managers and employees. One of the core process adoptions has been 360 degree reviews. A large number of organizations are inclined to have a better overall review conducted to remove personal bias and at the same time provide employees with a higher quality of feedback from managers and colleagues.
Traditional performance appraisal systems worked very well when workforce was plentiful. Most of the work was repeatable and thus traditional appraisals worked well to reward good performers and let go off the people who could not perform that well. In today's world, talent and skills are the key resource companies fight for, its imperative for companies to develop people and thus the focus shifts to reviewing skills and enabling company workforce to do better over a period of time.
We at CoFigure, strongly believe that your employees make a difference to your business every day and thus, we dedicated our company to bring products that will help you engage your employees better.
Tryout our Performance Management application to “Bring in a connected vision and work towards workforce transformation”.