The rise of real time performance reviews
The importance of performance reviews is often overlooked by businesses. Most of the time they happen once a year and are meant to help with employee development. In a business environment that is constantly changing and evolving, yearly performance reviews are becoming ineffective and obsolete. Real time performance management and the use of HR tech is growing rapidly, hence making for a more efficient way to manage performance reviews and communicate with employees.
Real time performance reviews are on the rise, as they make for a more effective means of communication. Employee development is key to the growth and success of a business and with real time reviews this can happen a lot faster. There are different HR softwares that provide businesses a single platform on which they can share goals and objectives with their employees, track their progress and help give them get a better understanding as to how they can improve.
Up your efficiency
Real time performance reviews help employees to evaluate how they are working and make changes accordingly. This helps in preventing prolonged errors and also increases efficiency. The problem with yearly performance reviews is that the feedback limits employees from developing and growing continuously. With real time performance management, employees have the scope to constantly change the way they work so that their work can be aligned with the business objectives and goals.
With a changing workforce, performance management must change too. Not only are yearly performance reviews costly and ineffective, but they don’t work for the workforce of the future. The next generation workforce will consist mainly of millennials and generation Zers. Both of whom need real time feedback to be effective. Authentic communication for them is the key to their development and effectiveness. Businesses need to maintain transparency when communicating with their employees, having this helps in creating a better relationship between managers and employees as it promotes open communication and collaboration, employees will also have a clear understanding as to what is expected of them.
Keep your employees motivated
Bad performance reviews can be demotivating to employees. To avoid this, managers should be able to turn negative feedback into constructive criticism. This way employees remain motivated and are provided with a clear direction in which they can work to improve and develop themselves. Being able to track employee progress means that businesses can start to set benchmarks and reward employees for achievements giving them an incentive to improve themselves and work harder, which in turn will result in a more efficient and productive workforce.
Ongoing engagement keep employees motivated, drives performance, and keeps them on track with their goals. Yearly performance reviews are most likely to be clouded by recency biases. A bad outcome or a failure close to the time of an yearly performance review can result in a bad review. Real time performance reviews however can avoid this because performance data is collected throughout the year which will result in a more well-rounded review.
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Azarah Singh is currently an intern at EdGE Networks and will be going on to study business management and entrepreneurship.