The average manager spends an astounding 200 hours each year on performance management, but what is all that hard work for when 90% of HR leaders don’t believe that the process produces accurate results or improvements for the company as a whole?
When you look at the figures, you can’t argue with the fact that outdated performance management systems aren’t getting the results they need to stay competitive and progress in their industries - change, it seems, is the only way forward and companies are starting to realise it.
Now, more than fifty-two companies have taken action to move performance management away from traditional annual performance reviews and find a new way forward.
Companies began revamping their performance management as early as 2008 after Kelly Services dropped performance ratings. Motorola Solutions, Adobe and Expedia were some of the early leaders for change who decided to put their employees at the heart of the process and moving away from making it just another admin task.
Motorola’s new system, which works through ongoing conversations as well as an annual performance review has been praised by employees for being fairer, simpler and less mechanical. Their results have been positive with higher performers being eligible for bigger bonuses and more feedback for millennial employees.
Adobe’s introduction of three monthly check-ins between managers and employees, group feedback before review meetings and continuous coaching and feedback have had a profound effect on staff motivation. The changes to performance management have resulted in an incredible 30% reduction in voluntary turnover, while maintaining a highly competitive workplace environment.