Continuous performance management is a raging trend in HR -- as hot as machine learning, chat bots and predictive analytics and just as capable of disrupting HR technology and processes.
Long one of the pillars of HR, performance management is becoming continuous, or more frequent, at many companies. As businesses focus on teams and become less hierarchical, many are scrapping scaled ratings of employees, streamlining annual reviews and using software to encourage constant feedback and coaching.
General Electric, once noted for "stack ranking" employees depending on their performance, adopted continuous performance management for 180,000 salaried employees and deployed an in-house mobile application. The method is also used at other big companies such as Schneider Electric, Accenture, Adobe and Deloitte Consulting.
Software vendors are providing tools to meet the demand and automate the process.
SAP, for example, introduced a continuous performance management application that facilitates frequent feedback among employees and then stores achievements and feedback to allow easier completion of annual reviews. Newer vendors such as Reflektive, Zugata and TINYpulse provide similar applications.
Forrester Research examined continuous performance management and found that the method can boost business outcomes partly by improving collaboration and freeing managers from completing multipage annual reviews that require a lot of time.
While at least one critic says it can be distracting or open to abuse, especially if the feedback is anonymous, the change to continuous performance management is expected to accelerate. In a report, Deloitte said the trend will continue to disrupt HR technology in "a massive way."
Tips and tools for deploying continuous performance management
A wide array of applications is available to help HR executives implement an effective and worthwhile program for continuous performance management. In this package of stories, analysts and business executives discuss the impact of new tools. And users at several companies discuss their efforts to launch programs and inspire employees to participate.
Continuous performance appraisals provide more business value, according to a Forrester report, which also lists upstart vendors with breakthrough products. Continue Reading
A user recommends Kanjoya software, saying it streamlines review writing and links performance with engagement. Continue Reading
Managers at Schneider Electric and Appster explain why they use BetterWorks and 7Geese, respectively, to help employees benefit from continuous feedback. The software also connects and aligns individual goals with the overarching aims of the organizations. Continue Reading
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Why companies are overhauling performance management
Companies are seeking to engage employees with a new type of performance management that encourages participation in weekly feedback or daily huddles along with frequent updating of goals. This section describes why companies such as General Electric, Deloitte Consulting, PricewaterhouseCoopers and Adobe are adopting continuous performance management to supplement or supplant annual reviews and scaled ratings. It also examines why the trend is speeding up and how software can help organizations scale new ways to evaluate and motivate workers.
Analysts explain why performance reviews are a dominant topic in human capital management. Continue Reading
An expert explains that performance management may be more frequent, but the aim still is to help determine an employee's pay and future success. Continue Reading
Two companies discuss their use of TINYpulse software for continuous performance management, while a law professor says the method is potentially divisive and should be tested first. Continue Reading
General Electric caused a national stir when it killed employee ratings this year and began using a simple annual review, along with an in-house application for quick feedback among employees. Continue Reading
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Users weigh their picks for performance management vendors
Companies face difficult and diverse choices in selecting a vendor for continuous performance management. In these articles, business leaders talk about how they structure performance management and the reasons they purchased products.
An HR leader at Gainsight explains how the company is promoting anonymous feedback among employees and why the unusual approach works at her company. Continue Reading
Senior managers at three different companies testify to the flexibility of SuccessFactors for performance management. Each uses the software in different ways to guide employees. Continue Reading
Lindsey Zan implemented SilkRoad Life Suite to revamp performance management at her company. She also finds inspiration in the tango and uses Dilbert to lighten the mood during the review process. Continue Reading
An executive at a rapidly growing company discusses why performance management should be ongoing. Matt Hoffman also says that change needs to be managed to be effective. Continue Reading