by Susan Jeffery
06 May 2019
Australian HR Institute: 3 steps to building a culture of continuous performance management
Want to change your company culture to one of continuous performance management? Get expert tips on how to get away from inefficient annual reviews and start a culture of continuous feedback.
Two hundred hours a year. That’s how much time Gartner research found managers spent per year on annual review documentation. And considering that 95 per cent of employees are dissatisfied with the annual review process and 90 per cent don’t believe they provide accurate information, it hardly seems worth the time and effort spent. It begs the question, if annual reviews are an inefficient use of time and offer ineffective feedback, how do you provide meaningful feedback to employees?
Continuous performance management is a new philosophy being adopted by companies today. It means ongoing one-on-one conversations between managers and employees held at regular intervals throughout the year with light documentation.
And it works.
Employees who receive frequent feedback are 3.6x more likely to be motivated to do outstanding work. They are also 6x more likely to believe that the feedback they receive is meaningful. Ready to get started changing your company culture to one of continuous performance management? Here are three things you need to know to successfully make the transition.
Change your philosophy
There’s a fundamental difference in the underlying attitude and philosophy between annual performance reviews and continuous performance management.
Annual performance reviews are built on the idea that managers must hold employees accountable and assess that employee’s value to the company. Feedback is one-directional as the employee receives a grade followed by either reward or reprimand. It’s no wonder employees find the process to be ineffective and inaccurate. They need to feel empowerment in the feedback process and play an active role.
Continuous performance management (CPM) starts with the foundational belief that employees want to perform well and that they want to improve, grow and develop in their careers. Employees drive the direction of their own development and managers take a supportive, coaching role, which creates an environment that fosters trust and builds relationships.
When you empower employees to take the reins in their career, the result is a success for both individuals and the company. So, when you’re trying to make the change to CPM in your company, start by educating managers about their new role in the review process. “You’re the coach, not the judge.” Set that expectation first and you’re ready to get started with continuous performance management.