Organizations are waking up to the need for ongoing performance management instead of the regular annual performance appraisal system. Annual review or appraisal is a one-time system for assessing the performance of an employee in any organization. In comparison, ongoing performance management is a continuous process of an employee’s evaluation. HR managers today are more and more in favour of replacing the annual performance management with the going system of performance method. Understanding the relevance of performance management, HR managers are specialising themselves in the field by completing performance management certification.
Many companies want to retain annual performance management as it provides a summary of the employees’ performance throughout the year however since ongoing performance management has several merits they want to introduce it as well. In such cases, they want to have a combination of both forms of assessments. By this method, the annual review is complemented by the learnings derived from the ongoing performance management process.
Pool of Continuous Feedback for Employees
The biggest benefit of an ongoing performance management process lies in the constant information provided to the employee about his performance. No one likes surprises at the time of a final evaluation when nothing can be done about the situation. Ongoing reviews give employees a peek into their own performance as well as other’s view about how they are doing in a regular manner. It also makes it possible to make desired changes in one’s shortcomings and see the result of that in real-time rather than wait for another year.
Improves Employee Performance
Companies benefit from the improved performance of the employee workforce. They also gain from not having to subject their employees with bad surprises towards the end of the year as employees are constantly aware of their own progress. A research done by TriNet and Wakefield Research concluded that 62% people felt completely blindsided by their annual appraisal results and 59% of the employees felt that the managers were not able to give them proper feedback.
Through regular feedback, performance gaps are filled quickly before they become gaping holes. It is easier to deal with small corrections rather than big ones that can accumulate over a period of time.
Improves the Quality of Feedback
The lack of a manager’s ability to give feedback comes from the absence of a proper method of recording the performance of the team members on an ongoing basis. Ongoing performance management solves this problem. It allows the team managers to record performance conversations so that at the end of the year they remember what happened all around the year and not just snippets of what transpired in the last few weeks or days.
Continuously assessing the performance of the employees can have several more benefits for the company. It makes it easier to track the performance in a detailed manner. It will make it a part of everyday life and the company will not have to spend extra time at the end of the year on this activity as is the case with annual review.
Facilitates Transparency in the Organization
Any employee will want full transparency in their assessment. It helps them trust their organization and make relevant improvement in their work. It also makes them feel good about their organization. They last longer in the company and say positive things about the organization to others, which further improves a company’s chances of hiring good talent.
Clear Career Path for Employees
Employees are also clearer about their career progression within the company as they now have clear roles, clear objectives and a fair idea of how they are performing. They can focus on the career path they want to have and accordingly work on improvement areas.
More Engagement with Managers
Ongoing performance management gives the employees an opportunity to have a sincere one on one discussion with their managers on a frequent basis. This is an opportunity which employees do not get otherwise due to the busy work routine. They get to build a meaningful rapport with their manager and get feedback for self-improvement. In this way, a good manager and employee relationship can be harnessed which can make the work environment positive and full of energy. As employees end up spending most of their time at work, it is necessary to build positivity in the work area to get the maximum performance out of them.
Human beings work better in an environment of synergy. This synergy is built between the organization and the employee only when regular efforts are made. Ongoing performance management gives the right environment for building an effective workforce. To bring about this change from the current annual performance management process to a continuous ongoing on, the companies need to bring about a deep change in their workings.