Many companies are changing their approach to performance management. While the immediate change employees see is the removal of an annual evaluation and/or review rating, the change to the process is the long-term impact. This means managers and employees talk regularly about the business and employee contributions.
You may see companies introducing new vocabulary: commitments vs. goals, connections vs. partners, continuous approach vs. strengths, contributions vs. achievements, or things to consider changing vs. opportunities or weaknesses. Let me share a few examples from my life:
- commitments: Years ago, a boss told me to minimize my commitments, but know each one. This tip has stayed with me through the years. This word seems more powerful than setting goals. How many goals have you set for yourself in your annual performance plan and have not met for one reason or another? On the other hand, the commitments seem stronger and more personal.
- Presentations: Consider listing your achievements at the end of the year for your performance summary. Now, think what would happen if you had to translate that list to contributions. Honestly, I think a few years could have cut my list of accomplishments in half, which contributed to my company’s bottom line.
- Things to consider to change: A sales manager once told me that I should consider changing my approach to developing new customers. She never said that I wasn’t good at generating leads (a term for “weakness”), but I understood what she meant and started looking for successful colleagues and learned a lot from them. Two years later, I led my department in new client accounts. This director was ahead of her time.
As market competition increases, savvy companies are looking for ways to commits employee, develop those employees and, ultimately, to hold back employees. Changing the performance management process can help achieve all three objectives.
- commits: When managers talk to employees about performance on a regular basis (rather than a few times a year), it demonstrates an interest in the employee because of the manager’s personal time investment. As managers spend time with employees, they learn what motivates them and become more effective at keeping them engaged.
- Develop: Telling employees where to “keep focusing” helps them know what a company values; and identifying areas where employees should “consider trying to do something different” shows you where you can improve without demoralizing the employee.
- To hold back: The cost of turnover is high and the incorporation of new employees requires time and money. Why not invest in your current employees by sharing ongoing feedback and encouraging them to stay?
In short, as a manager, spending time with employees is important, and the words you use are important. Talk to your employees on a day-to-day basis, making it part of your company’s culture. As everyone knows, an engaged workforce results in higher retention. Be part of the change process and start moving away from an annual feedback loop, even if your company hasn’t made the leap yet.