Managing employee performance and providing feedback is crucial to the success of any business. Surveys actually indicate 65% of employees want to receive more feedback than they currently do.
The decreasing popularity of annual reviews is only one of many aspects being influenced by modern work trends. Coworking spaces from companies like Fueled Collective or WeWork are popular among startups, freelancers, and even established businesses. Flexible hours and other work perks are increasingly common, too. It’s important to keep up with what your employees want, even if it means changing how you deliver feedback.
Luckily, there are options. Technology has made it easier than ever for organizations to embrace continuous performance management. This approach involves providing feedback consistently throughout the year. The following points illustrate why it’s time for you to make the switch.
Work is Changing in General
Changing work trends impact the effectiveness of management techniques. For instance, more people than ever are working out of the office. This means they’ll have even less direct contact with their managers. Thus, it’s important to replace face-to-face interaction with virtual feedback sessions.
Continuous Management Makes Giving Feedback a Priority
Again, odds are good your employees want to receive more feedback from you. With continuous performance management, providing feedback becomes a prioritized task. You’re less likely to overlook it if you adopt this approach.
You’ll Learn More
It’s common for managers to wait until the last minute to prepare for annual performance reviews. Thus, it becomes difficult for them to gather all relevant data from the past 12 months. That’s a major reason annual reviews aren’t valuable.
Continuous performance management involves constant data collection. It also makes it easier for managers to collect insights and feedback from other members of the company. As a result, managers can evaluate an employee’s performance more accurately. They’re also more likely to provide employees with genuinely useful feedback.
You Can Address Problems Early
It’s simple: the more often you connect with employees, the more chances you get to correct performance issues.
Mention an issue during an annual review, and you can’t be certain an employee will take effective steps to address it. Manage performance continuously, and you can help them make the necessary improvements much earlier.
You’ll Boost Engagement
Continuous performance management also provides you with more opportunities to acknowledge an employee’s contributions to the company. This has been shown to boost engagement. Additionally, you can provide them with resources they need to grow more often. Helping workers grow has a positive impact on engagement levels. Your employees will be more productive as a result.
Remember, if you rely on annual performance reviews, you’re using an outdated approach and simply aren’t offering your employees the feedback they want and need. Continuous performance management is a better option for everyone. Embrace it, and your organization will get a competitive advantage.