Being in HR, one cannot escape the ‘talk of the town’. With the HR community buzzing on the latest of the Great Resignation and the controversies of Quiet Quitting, reimagining Performance Management is the hot gossip everyone is trying to get their hands on.
Performance Management has evolved with time, but right now it has taken a leap that can be detrimental to many organizations and their survival.
Over the past few years, organizations have been talking about reinventing performance management, especially with the new ways of working since the pandemic, particularly the rise of hybrid work models and the desire for employees to be seen as people, not just workers or mere assets.
The corporate world has started to question. Are yearly performance evaluations important or necessary? Isn’t it sufficient that the manager and subordinate better understand the work done and the contribution to the organization? Do performance evaluations capture all necessary aspects of the modern corporate world?
Now than ever before is a critical moment to rethink the purpose and value of performance management programs. It can be said that leaders and managers will have to go beyond just measuring employees’ outcomes and goals achieved and give weightage to the context in which employees’ outcomes are achieved: their personal goals, work-life balance, the circumstances in which they work, the teams and projects to which they belong and the type of work they complete.
Reimaging performance management is not as simple as it sounds. While many have tried, many have failed and only a hand full succeed.
In March 2020, Facebook announced that it would be giving all 45,000 employees the same, ”exceeds expectations” performance review rating for the first two quarters. Some companies cancelled their next review cycle altogether. Others scrambled to explain last-minute changes to their performance measures and reward allocations.
So, what makes a Performance Management strategy work in the present context? Here are a few attributes spotted in common with the ones that showed positive results.
- Empathy incorporated Performance Ratings
HR professionals need to involve employees in the designs of empathetic performance ratings, which would include learning new skills, focusing outside of work, and prioritizing wellness goals.
- The use of instant gratification to bring out open communication
Instant gratification doesn’t always mean rewarding your team with monetary benefits and recognition. Open communication and feedback go a long way too. This includes providing real-time feedback whenever possible, holding face-to-face meetings with your team, breaking down long-term goals into smaller goals, and continuously monitoring work goals. Let’s face it, no one likes to be left in the dark.
- PM systems with consistent employee rewards and recognitions
Who doesn’t like to be recognized and appreciated? Appreciation and recognition are very important to keep your employees inspired and to drive productivity, after all the basis of this evolution is to appreciate your team as people and not just as an asset that gives you a return on investment. A performance management system that doesn’t include recognition and rewards for employee performance tends to fail more easily. It is important to keep track of employee performance and appreciate their good work.
Everyone makes changes to their Performance Management strategies thinking they could achieve the desired outcome, but where does it fail?
- Unstructured Performance Management Processes.
One reason why performance management fails is that the process lacks structure. It is not a one-time process but whereas a process that needs to be evaluated and corrected constantly. Unfortunately, it is not possible to see positive results if you don’t have a well-designed structure for performance management. The main reason behind having a performance management process in an organization is to improve the overall performance of the employees in the organization and employee behavior is volatile.
So, a well-structured performance management system helps the employees understand the organizational strategies better and work towards achieving their goals with more motivation.
- Wrong selection of employee goals
In many organizations, employee goals are not in the picture when the performance review process is on. Sometimes performance management also fails because wrong goals are chosen to optimize the performance of the employees. In short, goals are important to keep employees motivated and perform better.
- Having only an Annual Performance Evaluation is unsuccessful
Annual Performance Evaluations are a thing of the past. The present generation does not wait for one entire year to be recognized and heard.
Performance evaluation is valuable only when done on a regular basis. An annual performance review is not enough for any organization. Some managers claim that it consumes a major portion of their time but in a practical scenario, if the evaluation is done constantly this wouldn’t take much time as it would be broken down into smaller chunks.
Also let’s face it, close to annual evaluations, the entire team is rushing and kicking their brains to remember every single thing they have done in the past year and so many important tasks are forgotten or dropped out. Some employees simply copy-paste their previous set of goals and submit it into the system due to the time pressure put on by HR, so let’s face it, this is not going the right way.
Thanks to the rapid implementation of HR technology, employee performance management is moving away from traditional models like annual performance appraisals to a more dynamic mode of operation. Here is how:
- HR Tech plays a huge role in optimizing the review mechanism — moving away from the dreaded annual appraisal to a more integrated, continuous review process.
- HR Tech helps generate real-time feedback loops which can make employee expectations perfectly clear.
- Performance management tools also help HR teams to figure out how to hire quality candidates by aligning performance with recruitment
- The right performance management tools also enable employers to become more agile and to get a better bird’s eye view of the organization’s real-time performance.
You heard it right! The talk of the town is true and here to make a change, so don’t underestimate it as just another passing trend.
Many Managers believe that the interview is the most important part of the selection process, is that true?
Did you know?
Attraction is considered to be one of the most important parts in the whole recruitment process.
Before you start looking out for someone to fit your role, it is important to understand the attributes of what you are looking for. Role benchmarking is an important part of the selection process and there are 2 things to get started with.
- Put up a position description.
- Put together a role benchmark.
The role benchmark acts as a map to identify what type of person you want. The path to the person you want. The perfect job fit!
Many organisations lose out on great candidates that would be the perfect job fit, simply because they do not give enough time into the attraction process.
Initially, the organization needs to develop the role benchmark using a job analysis survey, and once you have that information you need to write your job advert to reflect the attributes that you are looking for in the individual.
The Traditional Job Advert Vs. The Millennial Job Advert
Traditional job ad :
- Paragraph about how good the company is.
- Job description
- How to apply
- Need to know what is in the job for them.
- More about the heart and behaviour, less about the pay.
A job ad should reach out to them whether or not they were looking out for it, but give the feeling that it is the perfect job that would suit them with what they need.
Attracting the Millennial and GenZ mindset
Why is it that Baby Boomers and GenX managers have trouble managing and retaining Millennials and GenZ?
Baby Boomers & GenX
Millennials & GenZ
Sees the light at the end of the tunnel
Sees the light at the beginning of the tunnel
Values delayed gratification
Looks for instant gratification
Let’s be honest, the new wave of employment is the Millennials and GenZ. Their understanding of work and even the expectations from an employer is different to Baby Boomers and GenX. But different does not necessarily mean bad! No one is to be blamed, as this is a result of the times and the environment of upbringing. Things are much more fast-paced with instant results, transparency and high competition.
Therefore, it’s best to go with the time or else you are going to be left behind. With information available instantly at your fingertips, Millennials and GenZ need to be convinced that the organization matches their mindset and beliefs. And for this social media can turn into your best friend. You need to convince and make sure your organization has an open-mind culture, an open door policy, an environment where they can develop their passion. It’s no longer about a stable 9-5 job, Millennials and GenZ need self satisfaction and confirmation that what they do makes a difference.
So here are some tips of attributes of an employee profile suitable for the prevailing WFH conditions:
When you are at home and working by yourself, you don’t have the support and motivation you had at the office. And this can be analyzed beforehand when the candidate has lower attitude levels in a job fit assessment.
- Lower Resilience: Such employees see the situation as the cup being half empty rather than half full. They dwell on the negative side of being at home, being lonely and not having the support.
- Lower Independence: They need people around them, they need to be able to go up to the manager and ask them a question whenever they need to. But unfortunately, it’s much more difficult to do in a work from home situation. So you need people who can work independently, make decisions on their own and don’t really have to be spoon fed.
- Lower Attitude: The combination of the above 2 attributes create a lower attitude, resulting in substantial health issues among employees. This then becomes a huge ongoing challenge for both managers and the organization.
- For new candidates- Develop a common job profile to suit the WFH culture and create a jobfit assessment for candidates to go through and see how well they fit the profile.
- For current employees – If you have a good understanding about their competencies, the organization can create work from home teams to fit projects according to the competencies of the employees. Organisations need to be agile, dynamic and flexible to create the right mix.
Example: Assume you create a team to take over a project with 1 supervisor and 3 subordinates. If the supervisor’s job profile indicates that he/she lacks a sense of urgency, it is advisable that the subordinates have a higher level of urgency in order to create a suitable balanced mix.
There needs to be balanced competencies within a team to work from home effectively. It is important to find the right competency mix and the right people in a situation of working from home. Identifying the right mix of people, both supervisors and subordinates and putting them together into teams to get a controlled output.
Create a project oriented culture. The project mindset gives you a start date and end date, project timelines, activities and deadlines. These project teams need to have the right competency balance where team members take up their activities and responsibilities based on the project plan.
Have agile methodologies to monitor and control the ongoing activities. Have quick 5 minute meetings every morning to track the progress.As a result the entire team knows that the project is moving forward. And there is always room for a small celebration once you achieve a milestone of the project and this is important!
No matter what, we need to accept that working from home is challenging! Organizations need to understand the ones who are challenged by this situation, and provide their managers and supervisors with coaching and mentoring suggestions on how they can actively manage the situation.
A Team report or a team balance table acts as an excellent tool for team leaders to better understand their team and to get the best out of their team. You need to have diversity in the team when looking at the balance, so that as a team, you could deliver an outcome that is far better to the organization.
In this unpredictable world, managers need to learn, unlearn and relearn on how to manage a team effectively. Managers need to constantly learn and at the same time constantly alter their ways to get the best out of their team according to the situation.
Managers need to be trained to create a culture with effective communication, celebrating milestones and achievements, virtual get togethers and game nights with the team and most importantly adapting to the current situation is definitely important to move away from anxiety and have a more personal relationship rather than purely work oriented.
It is 4x harder to manage and lead people working remotely rather than working under the same roof.
A modern global cloud HR information system (HRIS) like PeoplesHR enables companies to design better workforce experiences for employees. It is secure, user-friendly, and can be used across the world, as well as on mobile and on-demand. Cloud HR technology means reports can be generated at the touch of a button. Automation eliminates the likelihood of human error. And most of all, the best technology frees up HR’s time to concentrate on what’s really important – delivering great workforce experiences for all employees.
8 reasons to convince your management for an HR tech investment.
What has got you here isn’t good enough to get you there, and here’s why:
Let’s see if you're in the need of an HRIS Makeover?
Throughout the years decision making has been through many phases. From the traditional tool kits to modern algorithms. But the basis of all these have been how you make decisions, the use of facts and calculations. The aim is to make it more relatable to HR scenarios. Addressing this need, the addition of Simulations to the PeoplesHR solution identifies the answers to your what if’s.
In simpler terms, one is able to conduct certain scenarios and see how best it suits your organisational needs.
For example, you may want to see what happens if you give increments or bonuses, hire new individuals or even the repercussions if someone leaves. The goal of simulations is to facilitate various types of decisions with the use of data.
The functionality of the system enables these decisions to be made with existing data available in your HR solution. Hence the what if’s are based on actual organisational data and given in a perspective that is based on specified parameters and one can attribute values and determine a certain outcome. As these are based on real data the results derived have a high probability of accuracy.
The PeoplesHR platform has a workbench which one can simulate 4 elements according to real scenarios.
Imagine a yearly budget given to a department head and how they would utilize it. In such a situation, the simulation workbench helps the department head simulate against different entities within the organisation. Another interesting feature is that these scenarios can be shared among colleagues for verification opening doors for collaborations and sharing of opinions.
In terms of yearly increments, organisations can tackle this annual concern by identifying how a certain increment can affect the bottom line and cost to the company (CTC). The platform allows simulations for different pay elements and sees the corresponding results with the generation of real-time figures.
When conducting the simulations, the system also indicates the fairness of the scenarios and if the compa ratios are met and is colour coded for convenience.
This also facilitates to carry out fairness among the organisation as when increment decisions are made with the use of peer level analysis to see if the decision made is just. This can be through performance ratings, talent ratings or even the criticalness of their job role.
Exits on the other hand is also considered important within the simulations framework
Exits too are a part and parcel of the daily HR environment and come at a cost. With employee data available in the system, simulations automatically calculate the cost to the company based on their service duration.
All these formulas are exact formulas used in payroll,which therefore gives your accurate figures.
Hence organisations can always think twice before any harsh decisions are made before it affects the CTC.
Did you know?
Another feature of simulations that is highly critical is what can be applied to the scenario of opening a branch or different entity where the system can derive the cost of new hires based on the headcount required. Hence giving you the cost upfront.
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PeoplesHR shows you how best resources can be utilised by creating future scenarios in a simulative environment that let you use the available information for future requirements. Here are some key features that enhance PeoplesHR simulations:
⦁ Get the full picture of your simulations, last two years vs the current year.
⦁ Know the difference between allocated and actual usage of your organisation’s cost of Increments, new joiner, bonuses and resignations.
⦁ Get a complete summary of all those budgeted, simulated and the variations that may come up in your increments, new joiners and bonuses.
⦁ Know the top 5 employees whose exits will significantly cost the organisation.
⦁ Compare the past three bonus allocations.
⦁ Know the cost spread across your organisations increments, new joiner, exits and bonuses.
⦁ View allocated salary, increments and bonuses with the options to adjust if necessary.
⦁ Identify maximum and minimum salary scale positioning.
⦁ Make required budget allocations, view remaining budgets and identify under/over paid employees.
⦁ View and share the created simulations with/to required individuals.
⦁ Dashboard view of utilised allocations, cost allocations, total utilisations for the past 2 years with current year.
So why risk your business with just a gut feeling, when simulations give you an actual snapshot of all the possibilities.
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The corporate world is flooded with theories and saying about employees.Some say that happy employees result in great customer satisfaction while some consider the greatest asset of any organisation to be it’s employees.
In a world of constant uncertainty and obstacles surrounding a person’s daily work-life, how do you know if your employees are REALLY happy? How many times have you assumed an employee is extremely happy and satisfied doing his job, but ends up not showing results or even resigns the organisation?
In most cases, happiness is measured as a gut feeling but in a world of masked individuals (literally) and virtual workspaces, how does one really figure out the reality behind the fake smile.
We rate the satisfaction behind multiple experiences, whether it is food, transportation, or hospitality. Name it, we rate it! So why not get employees to rate their happiness at your workplace, to evaluate the employee happiness level with actual stats and create analytics out of it rather than just a gut feeling.
The Happiness Indicator in PeoplesHR does just that. The concept behind this feature is similar to the satisfaction ranking that can be done after obtaining a service. The Happiness Indicator gives employees to do something similar. Employees are able to provide their satisfaction towards their work simply by selecting the relevant mood emoji. This provides organisations to capture happiness and measure happiness and also make decisions based on employee satisfaction which is a rare occurrence.
This happiness indicator opens doors to a variety of analytics and insights. Happiness levels can always differ during an employees shift. This can be due to stress, fatigue or time of the day. This information is now readily made available in the system. Another example is that newcomers are always excited and happy to join, but the level of engagement and enthusiasm gradually reduces with time. The Happiness Indicator now enables this information to be generated through data enabling employers to analyse the situation better. As a result of this analysis various aspects can be brought to light. Whether the problem is due to a particular supervisor or the group of peers associated with or the organisational culture.Therefore HR can look into how best they could provide a good working environment for their employees.
Happiness is also paired with other parameters, such as employee performance, their Bradford factors, work hours, the service period, the number of subordinates they manage any many more in order to have a drilled down analysis of employee happiness. Which in turn would be a critical point for the retention of employees.
Combined indicators such as the top performers, employee talent and their potential along with the predictive models indicating leaving probability shows whether the organisation is going to face a problem if a high performer wants to leave. As a result the insights derived from the Happiness Indicator can be used to resolve the problem. Hence it can be stated that it takes a series of dimensions and provides recommendations on what is to be done.
The PeoplesHR Happiness Indicator is available on the PeoplesHR Mobile App for anyone with access to a smartphone. But it’s not limited to a smart device, the Kiosk application comes in handy to those who have no access to a smart device or a pc. The PeoplesHR Mobile App and Kiosk are completely identical in order to provide the same level or experience and engagement to all employees despite their occupational level. The kiosk is available as a windows app and a web browser and is localised for upto 16+ languages, breaking language barriers too.
In short, we give your organisation to know what every single employee feels. Whether they work in a production plant, at the head office, customer site or even at home the opinion of every employee matters to us.
In case you are interested in getting to know if your employees are truly happy, connect with us and we are happy to guide you.
An agile performance management happens in 2 angles:
- continuous employee development combined with,
- continuous conversations
This shift in focus from traditional performance management recognises that a more skilled and capable workforce can perform better and boost company performance. Just like any sports team, regular feedback, communication and coaching is needed to create excellent performance to survive in a highly competitive environment. In order to support employees and drive performance outcomes even in uncertain times, HR and People leaders must encourage managers and employees to adapt their conversations and processes.
Agile performance management enables HR and People teams to create enthusiasm and engagement through continuous conversations and coaching. This would require HR teams to:
- Using objectives to provide clarity on individual goals and their direct link to the overall business goals, even in challenging business environments.
- Reinforcing the organization’s commitment to the long-term success of the employee, even in the face of constraints on new investments, resources or pay.
- Continually develop and expand skills and talent pools among existing employees to address the markets’ changing needs.
- Tailoring acknowledgment of employee efforts, especially when employees go the ‘extra mile’ to avoid disruption for customers.
- Rewarding employees for their great work with tokens of appreciation, development opportunities and low cost perks.
- Encouraging innovation, even when the organization has budget constraints, managers can emphasize the need for incremental innovation or process improvements.
- Using continuous conversations to enable a two-way dialogue that focuses on both the positive and negative implications of business conditions.
- Creating end-to-end accountability over projects and responsibilities to support cross-functional teams and agile ways of working.
Traditional performance management processes and systems have struggled to motivate and develop employees because their approach led to infrequent and ineffective feedback, resulting in unfair employee evaluation with misplaced accountability.
Agile performance management needs to support cross-functional teams, project work, changing needs and use feedback to improve growth. The right HR system can help manage your peoples’ development with continuous conversations and goals setting.
Here’s how PeoplesHR can support agile performance management:
- Enable open discussions and continuous conversation between managers and colleagues to improve and enhance performance.
- Update objectives in real time as they evolve, rather than waiting until the end of a financial year when they may have become out of date.
- Align and track performance regularly against individual goals, linking them to the organisation’s objectives.
- Enable 360 feedback through internal team members as well as external assessors outside of annual or other formal periodic reviews .
- Match or Bridge skill gaps by easily searching for skills and capabilities across your global workforce for job roles.
- Ability to identify learning needs and create career and professional development plans as part of your employee performance management process.
- Access a multi dimensional succession plan in real time with an accurate and up to date view of multiple successors, level of readiness, level of importance and supporting development plans.
The world of work is changing at pace, interested in keeping up? Connect with us on a Live Demo and we can show you how.
- Define actions, configure properties and create alerts to be sent at different stages of the offboarding process.
- Authorised admin users are able to define and configure the initial stages of the offboarding process.
- Define exit types and question groups relevant to various scenarios.
- Off boarding actions can be managed through a configurator checklist.
- Reallocate and retrieve tasks and properties granted to the employee involved (allocated company resources and official documentation).
- Analytics on employee’s exits for varying reasons.
- Automatically trigger notifications to key personnel when an employee submits his/her resignation online.
- Ensures that the inactive employee no longer has access to the organisation’s sensitive information and blocks access to confidential documentation.
- Identify and evaluate the reason for the employee’s departure to reduce the risk of potential lawsuits by ensuring that the complaint procedures are followed across all locations.
- Customise exit questionnaire to be sent to different employees focused on their area of expertise.
- Initialise exit notices through a predefined cycle of approval level.
- Exit finalisation with payroll, rehire recommendations for all offboarding employees.
- Exist clearance process of all recoverable assets with pre – configured clearance procedures.
Tech-savvy HR and People teams are not just those who can use the tools they are given, but who can develop their skills with them, achieving greater results while remaining flexible to the type of HR technology they use.
What technological skills are expected from the HR team of tomorrow?
The HR team of tomorrow, technologies like cloud, automation, self-service HR and mobile apps will become the basics and fully adopted across the board. We know this because these technologies are already vital today. The HR team of tomorrow simply won’t be able to function without them, just as many HR teams are struggling without them already.
Tips to bring your A game in tech skills needed for tomorrow’s HR
- A good place to start is to compare your tech skills in relation to the business. Do you understand as much as the wider organisation or are there specific knowledge gaps you need to address?
- Once you know what you need to improve in, you can take a long-term approach to acquiring the skills. Try to immerse yourself in the world of technology to gain a holistic understanding as you go along.
- Attend industry exhibitions for both the HR sector and your wider industry, these are great places to discover and learn how emerging tech can benefit your organisation.
- Keep an eye out for technology that can serve your organisation’s specific needs versus chasing down the hot new tech platform. Be intentional.
- Read thought leadership publications. Industry experts often give unbiased advice about products they have encountered and can be a key source for news within your sector.
- Take online courses. These help you to acquire the tech skills you require which can get handy even for developing skills such as coding.
- Attend webinars. Often hosted by technology experts, these will give you an overview of both current and emerging technologies and help you to make informed decisions.
- Apply for demos of new software. This is the best way to test and understand what your team’s limitations are when it comes to understanding and applying technology.