HR disruption – Redesign of Performance Management

In one of its latest research reports, global advisory firm Bersin by Deloitte predicts "Debate and discussion about performance management will continue; many companies will reengineer and experiment with development and feedback-rich performance management solutions..."

Marc Effron from The Talent Strategy Group also has some passionate views about “the current controversy over a truly minor piece of Performance Management – ratings”. After the hype last year foretelling the demise of performance ratings abated, a number of organisations are starting to challenge existing performance management regimes. A new understanding of holistic performance management frameworks is emerging, at the core of which is development – making performance conversations more frequent (than once-a-year), more developmental and empowering for staff.

Pivot software published a white paper called “Why death of performance reviews has been greatly exaggerated” earlier this year, that breaks down this change that is sweeping organisations and how the shift away from force-fitting people into bell curves affects a remuneration framework.

It would be a bold claim for me to make that as a best-of-breed talent management solutions provider, Pivot has nailed the next generation of performance management needs of modern organisations, so I won’t do that because there is always more to learn. However, in my conversations with HR leaders of top performing companies in New Zealand and Australia, I’ve observed a few common characteristics:

1. Establishing formal and informal goals and performance parameters is encouraged – for staff and managers alike
2. Check-ins along the way and evaluations done as and when goals have been met, instead of a single, once-a-year event.

The Bersin report mentions the redesign of performance management to be the most disruptive area of HR today. Is it the same at your organisation? How is performance management changing at your organisation and what are the flow on effects of that?

Share your thoughts in the comments section, or write to me.

You can also download the Pivot white paper here: “Why the death of performance reviews has been greatly exaggerated”.