Performance management is evolving. Organizations are increasingly moving away from cumbersome annual reviews in favor of an approach that provides meaningful and frequent feedback that is proven to improve performance.
But providing timely feedback means tailoring the traditional performance review cycle to better meet the needs of employees hungry for information about their performance. Gallup research from 2022 reveals that when provided regularly, feedback increases employee engagement, and that this kind of increase can have a major impact on individual and consequently organizational performance 🚀
Modernizing performance management requires modern tools so that each cycle can be tailored to your company's specific needs and in line with a culture that fits the workplace.
What are the different types of performance review cycles?
- Annual: performance reviews are delivered at a formal meeting once a year, annual reviews have long been the preferred, or at least most popular, format, particularly for those companies that need to complete reviews and provide feedback for a large number of employees 🍾
- Semi-annual: Semi-annual reviews, occurring twice a year, are often divided as follows: one focusing on payroll and the other on employee satisfaction ⚔️
- Quarterly: given the higher frequency, quarterly reviews can focus more on short-term goals and may be suitable for companies that wish to grow by making regular adjustments to their goals 🍄
- Continuous: Instead of reserving specific meetings to review performance, a continuous and ongoing feedback loop incorporates the performance discussions that occur regularly each reporting cycle ♻️
Although annual reviews have been the norm for decades, many companies are moving toward cultures in which performance reviews are not treated as stand-alone discussions. But they are seen as an adjunct to the continuous feedback process that we know helps foster growth, engagement and consequently improve performance.
Why personalization makes a difference
Customizing traditional performance review frameworks can have significant advantages in preparing companies for what may happen in an ever-changing landscape.
By customizing the review cycle to include more regular conversations about team and individual performance, it makes it easier for managers to get a more in-depth view of employees' strengths and weaknesses. This process also helps them understand how their performance contributes to achieving company or team goals more effectively.
Traditional performance review cycles, especially those that rely solely on manager feedback, can be ineffective and prone to bias. Personalization makes it easier to use a 360-degree feedback approach, in which managers' comments are supplemented by self-assessments, check-ins, and feedback between parties. Incorporating a broader range of feedback helps identify trouble spots, reduce bias, and align goals more effectively by objectifying the process 🤩
Over time, this can have a transformative effect on business results. Customizing the traditional performance review framework not only helps us adapt to changing times, but also makes us future-ready, ensuring that our team members remain agile, competent, and motivated.
Creating a customized performance review cycle like this might seem like a lot of effort, but choosing the right HR technology can make this change much faster and painless.
A key step is to choose a platform that allows you to get everything in one place 📌
Harnessing the power of a single platform
A disconnected technology stack can be difficult to manage, putting additional pressure on HR teams who are usually entrusted with this arduous task and who already feel exhausted before they even begin. First, moving to a single platform means that all the most relevant data is easy to find because it is always in the same place and in the same language. No longer will it be necessary to flip through Excel sheets or get lost in the sea of emails exchanged between managers and team members.
Moreover, when everything is in one container, it is much easier to do analysis on staff growth. Instead of relying on the manager's instincts, which are often subject to bias, taking a data-driven approach helps uncover valuable information that can be used to improve performance 🧮
A single platform also makes things much easier for employees. And since employee engagement remains the top priority for teams dedicated to people, the right HR technology can help by making it easier 🧩
Streamline performance review processes into a single platform
Moving to a single platform also plays a key role in updating performance review processes. For many organizations, the key is a solution that brings together:
- The setting of goals and OKRs,
- performance reviews and
- the engagement surveys
helping to unify people management operations so as to ensure a clearer overview and the ability to make better, data-supported choices.
So not only does a single platform simplify the HR process, but it also stores historical data that provides valuable information 💎
Not to mention that it is also easier for employees to complete, who go from having to fill out complicated spreadsheets to having to answer simple, clear questions.
Having a single platform to evaluate team and individual performance makes it as easy as possible for employees to access the information they need.
Make ongoing changes to suit your business
Using a single platform also means that it is much easier to change the review process as a company evolves. Companies can go through many different periods-from growth to acquisitions to downsizing. Knowing how to adapt to these changes while maintaining good performance and being able to monitor it is critical.
It's certainly no secret that modern workplaces are changing faster than ever, and it's essential that companies keep up with the times 🏃♀️
Knowing that your HR platform can cope with constant change also means that it is easier for HR to make changes as smoothly as possible without adversely affecting the employee experience.
"When we had to quickly shift our focus to digital customer interactions because of the pandemic, the quarterly review process allowed us to quickly realign our team and recognize people who adapted quickly to this new environment."
Conducting frequent evaluations allows employees to assess their effectiveness as they do their work and make changes if necessary, providing valuable insight, clarity and keeping morale high. This approach also makes it easier to identify areas where employees need additional training or support, enabling the company to better develop and retain talent over time ✨
Reinventing reviews doesn't have to be difficult
Schedule a call with us to learn more about how the right HR tools can help you transform the overall performance review process to better meet the needs of your business and your People. Or schedule a free workshop with us, download the program!
Learn more by downloading our guide on Performance Management & OKR! 📚
