Standard performance management is 'failing' workers

Dive Brief:

While standard performance management models have failed to raise worker productivity, technology and a human-centered course of action can bolster performance, according to new data from Deloitte emailed to HR Dive. The "Performance Management Solutions: Market Primer" report showed that technology integrated into normal workﬂow systems results in "4.3 times higher change in agility" and "5.5 times better ability to develop leaders."
The report criticized standard performance management systems for being subjective, focused on past performance rather than on future improvement, and devoid of a performance rating system aiming for positive outcomes. The report said that PM tech solutions should support goal management and feedback from multiple sources.
According to Deloitte, organizations with solid performance management systems in place perform 92 times better financially than low-performing PM organizations.

Dive Insight:

Technology isn't the cure-all for every workplace solution, but Deloitte's report showed how technology can make performance management and HCM better meet organizational goals and increase productivity — especially now that employees expect a different tack for feedback overall. Immediate feedback is increasingly requested, not only from employees but applicants as well, pointing to the broader shift employers have to make to all their systems.

A 2018 OfficeTeam survey supports the trend toward shorter, more frequent performance evaluations. Employees have expressed their preference for timelier, more frequent feedback instead of the annual assessment, which is too often focused on past performance rather than improved performance moving forward. Technology can provide the speed and efficiency that allows employers to adopt timelier and more frequent appraisals in general.

While technology can drive much of this change, employers must also ensure managers (usually given the brunt of responsibility of giving feedback) have the support needed to make more constant feedback a realistic goal. HR and talent pros should position themselves as partners to managers, especially for the more difficult conversations. "If a manager is aware that it might be a tough conversation, it's always a good idea to give your HR business partner a heads up so they can be attuned," Jim Flynn, CHRO at Sitel Group, previously told HR Dive.