A positive atmosphere in the workplace increases employee growth and makes him an asset to the organization. To create a positive work environment, employees should be given honest feedback. It fills him with confidence and boosts his morale.
With the increase of millennials in the workplace, continuous feedback has become essential now. From Millennial's point of view, freedom, opportunity, and creativity are their assets. Companies have to provide consistent feedback and change their performance management process to retain top talent out of them.
Performance Appraisals and performance management
A quick survey reveals 90% of performance appraisals in companies do not appreciate real talent. It is also one of the reasons for an increase in attrition rates. Performance appraisals should be an encouragement for the employees' hard work. It should be based only on the employee's performance in a period. It is also a type of feedback that every employee waits for.
If employees and managers sit together and discuss company goals, it would make employees feel valued and wanted, and they try to deliver their highest potential. At the same time, managers will know which goals are practically possible and impossible by the employees' words. Good coordination between both results in the high performance of the organization. Hence, performance management should include all the human resources for better feedback or a better solution at times of conflict.
OKR approach tool in performance management
There are many performance management tools for an organization to measure its goals. OKR is one such tool that identifies new initiatives and sets targets.
OKR is a performance management tool that plans, communicates, and monitors an organization's goals or its employees. The main idea behind the OKR approach is to bring all the employees of the organization to work towards a single goal. OKR aims at the motivation of the workforce. The performance of the employees starts getting excellent from good.
The perspective of employees is taken into account in this OKR approach. OKR has two components.
The objective here defines setting up the goal for the employees. It might be around something that the employee wants to improve or work on.
They consist of the measures taken by the employee to achieve the objectives. The result should be clear and visible and not just completion of the objectives.
How should OKRs be applied?
OKRs aim at employee motivation and increased productivity. However, they should not be coupled with compensation or punishment. There are two types of OKRs.
These are the objectives and key results expected of an employee by the organization.
Aspirational OKRs are about how the employees recognize their objectives and their efforts in achieving them. It, in turn, connects to the outsider's perception of the organization.
If the OKRs are connected to the compensation, it will create anxiety in employees and affect their productivity. The job of HR in the OKR approach is to develop goals and set expectations for employees, and give them the freedom to achieve them with their best efforts possible.
Setting up of a Performance Management process
Set up Review meetings
Review meetings should be held every fortnight, every month, and every quarter to gauge employee performance. It should be a two-way approach where the employee can speak about his achievements and shortcomings. The management can speak the positive points and guide him to turn his negatives into positives by the next review meeting.
Employee engagement happens only when the management is all ears to listen to the difficulties of its employees. Being empathetic towards employees is the greatest quality management can show to its employees, leaving aside monetary benefits.
Encourage Discussions on leadership styles and organization
The employees should be allowed to discuss the leadership styles and organizational goals. They can express their thoughts which might be an eye-opener for the management. The organization will consider collective ideas for implementation.
Benefits of Continuous Performance management
Performance management is beneficial for employees as well as the organization. Following are the benefits of continuous performance management.
Increased employee visibility
Continuous feedback cycle improves the employee morale
Highly energetic employees
Conflict resolution is super-easy
True employee engagement
Unbiased, transparent, and clear decisions
Improved communication between employees and managers