As the HR processes continue to experience shifts in view and effectiveness, performance management must take a real-time technological approach. Thus, it is crucial for HR teams to formulate updated strategies to keep abreast of this dynamic business environment.
By understanding last year’s events, business leaders will gain insight into this year’s trends, allowing them to adapt to the existing challenges while maintaining resilience to cope with future uncertainties. While performance management is an HR staple, current models will need a complete revamp since traditional appraisal structures prove far from being employee-centric.
Here are three performance management trends to consider this year:
- Data-Driven HR Administration
- Onboarding, Offboarding, and Transitioning Employees
- Understanding the Employee Experience
Data-driven HR Administration
2020 brought an increase in technological development, which helped HR collect, analyze, and report data. As this year progresses, we anticipate this to grow in significance as HR applies data analytics to a wide range of metrics spanning from turnover rates, revenue per employee, and absenteeism. When HR-related analytics is integrated with performance management tools, companies’ data is maximized for another layer of oversight into their procedures.
Managers can use performance-related data to conduct checks on employees’ or groups’ progress in real-time, increasing accuracy and accountability. Additionally, compensation management software can facilitate employee’s raise decisions, which takes employee data into account.
Data-driven performance management helps eliminate biases as algorithms will not consider anything that is not data-related, such as gender, race, or age.
Onboarding, offboarding and Transitioning Employees
With the increase in remote workers in many companies, there will be a focus on transitioning existing employees into new roles and onboarding new hires. By automating these processes, companies will save time on distributing policies, cultures, and role expectations.
On the other hand, offboarding will furnish key leaders with a chance to gain insight on why employees are leaving their organizations, with strategies being adjusted accordingly. Leaders will now understand what motivates employees and why they go, enabling better hiring decisions and increasing existing employees’ motivation and performance.
Understanding the Employee Experience
Another performance management trend that will be prevalent this year is the understanding of the employee experience, which can also be referred to as the human experience since it personalizes employees’ work.
Performance management tools will play a significant role in understanding the employee experience throughout this year. These will help managers work with employees to set development objectives that align with company goals, providing them with a sense of purpose and improving motivation with recognition.
Understanding employees’ experience will result in increased productivity since they are contributing in a personal and positive manner, ultimately improving employee retention rate and enhanced engagement levels.
These are just a few of the trends that will affect performance management as we move further into 2021 and may prove to be long-lasting shifts. By taking advantage of these advancements, organizations will create a better work environment for employees to perform well.
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