The time has come. The annual performance review is a thing of the past. Relevant for a time when long-term employment was a valued goal. At best they help reflect on past performance, at worst, they only serve as a tick the box exercise, an activity that must be completed at years end.
Most performance systems lack little correlation to performance measures that matter. Yes KPIs are typically set and help guide WHAT someone needs to do to perform at the expected level. However, measures around HOW someone performs are rarely seen as valuable to include in a performance process because it’s hard to measure and subjective in nature.
In the end the performance discussion focuses on how well an individual contributed to the achievement of a KPI that lacks meaning, and in some cases, direct relevance for them.
The reality is:
- The average Australian worker will have 17 employers from the age of 18 to retirement
- Individuals entering the workforce today have more choice, more fluidity and more power
- National average time spent in a position across all age groups is 3 years and 4 months
- Job mobility is the new trend
- Job opportunity and flexibility is more appealable than job security and loyalty
What does this mean for performance reviews?
It means individuals are seeking constant feedback through informal means around how they are performing.
Feedback to confirm what they need to continue doing.
Feedback to identify what they need to start doing.
Feedback to clarify what they need to stop doing.
Most importantly, feedback should be focused on how someone is doing their job. How they are thinking about something, how they are solving problems, how they are connecting and relating with others and so on.
Creating a culture of feedback enables continuous conversations to occur with team members. This level of clarity around performance outcomes drives higher levels of engagement and retention.
Helping individuals understand on a regular basis how their actions, choices, decisions and behaviours impact those around them and the business generally is a more agile approach to performance management.
Modern teams run agile performance management programs. Programs that are anchored to business impact. Programs that provide regular feedback on a quarterly, monthly or weekly basis. Programs that put the ongoing competence and capability development of the individual first.
