The worst-kept secret in companies has long been the fact that the yearly ritual of evaluating (which many times comes down to rating and ranking) the performance of employees epitomizes the absurdities of corporate life. Managers and staff alike too often view performance management as time-consuming, excessively subjective, demotivating, and ultimately unhelpful. In these cases, it does little to improve the performance of employees. It may even undermine their performance as they struggle with ratings, worry about compensation, and try to make sense of performance feedback.
These aren’t new issues, but they have become increasingly blatant as jobs in many businesses have evolved over the past 15 years. More and more positions require employees with deeper expertise, more independent judgment, and better problem-solving skills. They are shouldering ever-greater responsibilities in their interactions with customers and business partners and creating value in ways that industrial-era performance-management systems struggle to identify.
Because of this, rethinking performance management is at the top of many executive teams’ agendas. Annual reviews and their heavy emphasis on financial rewards and punishments, as well as their end-of-year structure, hold people accountable for past behavior at the expense of improving current performance and grooming talent for the future, both of which are critical for organizations’ long-term survival.
Leveraging their power as individuals, employees are asking for more personalized, agile, and holistic rewards, including a focus on fair and open pay. While companies recognize this overall shift, only 8 percent report that their rewards program is “very effective” at creating a personalized, flexible solution. Early experiments are exploring how to develop a holistic variety of rewards and match them to individual preferences, across diverse talent segments and on a continuous basis.
TMA's Managing and Rewarding Performance Summit will discuss best practices and trends in the areas of performance assessment and reward management.
Join our expert speaking faculty as they discuss:
• Continuous performance management
• Coaching managers to deliver meaningful performance conversations
• Using social media, data, analytics and other technology to support performance management transformation
• Exploring ratingless performance appraisal
• Innovative reward and compensation practices
• The link between performance management and the employee experience
• Aligning Performance and Talent Management
• Rethinking Pay for Performance Models
• Measuring and Managing Team Performance