7 Benefits of Modern Performance Management

Updated:

February 19, 2021

Ready to make the switch to a more modern performance management approach? 

Organizations that update their process have a lot to gain. In this article we cover 7 great reasons to modernize your own performance management process.

1. More Frequent Feedback

Modern performance management strategies increase the frequency of the feedback employees receive. Whether it’s quarterly check-ins, project-based reviews, continuous feedback or frequent goal setting; when managers and employees are meeting more often good things happen.

Frequent feedback means that employee performance becomes a year-round conversation rather than just for the month before and after an annual review. It also keeps feedback relevant to the moment. It probably doesn’t make sense for employees to be guided for 12 months by one conversation?

Most organizations are faster and more agile than they ever have before. It’s important that performance management keeps up. 

2. Diverse Sources of Feedback

Modern approaches don’t just increase the frequency of feedback, they also increase the sources of feedback.

Downward, self, upward, peer and external feedback all help to clarify the picture of employee performance. Employees are more to your organization than a relationship with one other person.

Also, relying too heavily on a single point of feedback can make it hard to identify biased data.

3. Feedback Becomes Action

Modern performance management is about results, not just completed forms in a filing cabinet. 

That’s why approaches like Deloitte’s project-based reviews or Adobe’s quarterly check-ins do more than just promote long-term discussions of performance. They also encourage goals for setting intentions and continuous feedback for translating intentions into actions.

When you update your performance management approach, the discussion between a manager and an employee about performance becomes just the first step. Ultimately the goal is to be driving meaningful outcomes for your organization.

4. Outcomes Relevant to the Organization

When HR builds a modern performance management strategy, they cater it to the needs of their own organization. Some focus on accountability, others on employee development or organizational alignment.

It’s no longer something you pull off the shelf for vague reasons like compliance. This means that the outcomes are relevant to the goals of the organization. If a fast-moving organization with a flat hierarchy implements an organizational alignment strategy they’re doing so because it solves a meaningful problem.

5.  A Process Relevant to Employees

A classic complaint employees have about annual reviews is that “half the questions don’t even apply to me!”

When managers and employees realize the new performance management approach has been built for them they’re far more likely to embrace it. Modern approaches also emphasize streamlined systems so that employees spend more time discussing feedback and less time administering clunky systems.

6. Better Performance Data

Modern strategies also focus on better questions that generate better data. The idea is to ask people questions they know the answers to. 

Questions like “Is this employee ready for a promotion?” or “Would you want to work with this employee again?”

Modern approaches also rely more on qualitative data in addition to quantitative data in order to capture the nuances inherent to human performance.

7. More Transparency and Fairness

Centralizing and standardizing performance management helps keep conversations about employee performance open and fair. 

If your organizations is driving how performance is evaluated or recognized your less likely to have situations arise where managers are running their own systems that are incompatible with the your values.

Ready to Make the Switch?

If you’re looking to switch to modern performance management, the next step is to choose the approach that’s right for your organization.
Check out our guide here.

What to do next.

Here are three ways you can continue your journey to a more modern and effective performance management strategy:

  1. See PerformYard In Action. Find time with one of our product experts to get a live look at what it's like to use modern performance management software. Every call starts with a 5 minute discussion of your approach and then immediately dives into a live product demonstration that's based on your organization's process. Or start by watching a 2-minute video overview.
  2. Learn more about modern performance management. Start with our Guide to Building a Modern Performance Management System, or visit our blog to see the latest ideas from our team.
  3. If you know other HR Pros who would appreciate this article, share it with them through email, LinkedIn, Facebook, or Twitter.