Human resources leaders have committed to major changes in performance management and human capital management processes, according to a new survey, but well over half haven’t started the overhaul.
That’s according to the survey from Wakefield Research and BetterWorks, which reports that while 99 percent of HR executives have committed to changing their current processes, 58 percent have yet to begin.
At present, 81 percent of respondents indicate they use, or plan to use, continuous performance management, including ongoing feedback and regular check-ins between managers and employees. And while over the last year a third of companies have ditched rankings and ratings, and more than half have launched a more frequent goal-setting process, plenty more haven’t actually taken action—yet.
But among the actions planned, either already underway or on the schedule for 2018 and after, there are plenty of trends already on the move in the workplace. For instance, 79 percent of HR executives have higher spending planned for performance management processes in 2018, with 43 percent intending a 10 percent or higher budget increase.
And they’re not fond of annual performance reviews, with 41 percent saying they fail to actually improve employee performance at all. In addition, respondents indicate that the reviews cause too much tension and anxiety for employees and managers.
Then there’s continuous performance management. Among organizations with a CPM system in place, 85 percent of managers provide employees feedback quarterly or monthly, transforming legacy systems into an ongoing experience.
Providing ongoing feedback throughout an employee’s tenure is particularly important for younger employees, but not so much for older generations, say 83 percent of respondents. In addition, 90 percent of HR executives also rely on leveraging technology in the feedback and check-in process, which they say is crucial for successfully managing those younger employees.
Then there’s the carrot technique, with 47 percent of HR executives planning to increase spot bonuses, or bonuses given for exceptional work. Continuous performance management helps managers see whose performance is above and beyond, allowing appropriate recognition.