Performance Management, which usually refers to the tracking and management of the performance of a company employee, is a very important factor in the overall growth of the company. With proper planning, monitoring and by following some effective performance management trends, the company owners and managers can ensure the continuous growth of the organization and its employees. The process involves careful monitoring of the work efficiency and overall contribution of individual employees and implementing the right plans at the right time with the aim to improve the overall performance.

In this article, we are going to talk about the current performance management system trends that can help organizations like yours to understand and improve the work efficiency of employees. But before that, one must understand that the complete idea of the performance management system is based on one simple fact, that the company management is responsible for implementing the right activities to increase the employees’ work effectiveness. Here are some performance management trends that may come handy in the coming years.

Regular and Real-time Feedbacks

From the past few years, annual performance reviews are being replaced by more effective continuous performance management. A trend that is very likely to continue for many years to come. Companies are now recognizing the importance of regular communication and real-time employee feedbacks in increasing the overall work performance. More and more companies are now trying to implement a more frequent kind of performance management system that allows them to keep real-time track of their employees.

By conducting more frequent and personal conversations with your employees, you will allow them to engage more in the decision-making process. It eventually increases their trust in the organization. This also ensures that employee efforts are aligned with company goals. A good performance management tool can help you conduct regular employee discussions and keep track of the results.

Performance Coaching

More and more performance management tools are now equipped with performance coaching that focuses on the career development and growth of the organization employees. Many studies have revealed that employees are more likely to retain with a company that offers regular opportunities to grow both personally and career-wise. The best way to ensure continuous personal growth is performance coaching and training. Employees, nowadays want to work for the companies that can help them grow. Most of the people consider “professional and career development” a critical aspect when choosing a company to work.

Many companies have already started implementing the performance systems for daily training, learning opportunities and mentorship to protect the future of their employees.

performance management trends

Big Data to facilitate strong engagement

Big data and machine learning have made it easier for companies to track and evaluate employee performance and share instant feedbacks. An organization that will maintain regular engagement and shares feedbacks even on small tasks is likely to outperform its competition by a big difference. It is natural for employees to get detached or feel disengaged when they are not commended on a successful job. A machine learning based performance system will allow you to share regular feedbacks with your employees. It will not only increase the engagement between employees and managers but will also improve the work performance.

Employee Independence

Independence to make crucial decisions is a factor that will largely impact the employee productivity in the coming years. By giving your employees more control over the process, you can ensure increased trust and improved performance. Many companies are now placing employees in the driver seat when it comes to making the important decisions and sharing feedbacks. This will not only reduce the burden of the upper-management but also increases the responsibilities of individual employees. The flexibility of work hours is another important factor for employee autonomy. Employees should feel free to do their work on their own time as per their suitability. Many companies are already benefiting from these techniques.

E-learning mechanisms

The technology is rapidly replacing the way we used to learn in the old days. This is also true for the organizations that are regularly engaged in employee training programs. Many companies and even employees now prefer to use e-learning tools instead of long classroom lectures. This is a really flexible and interesting way of learning. This is also greatly influencing the overall performance management system of the companies.

Any company that wants its employees to learn and grow professionally, need to implement proper technology-based learning options like video tutorials, live simulations, online teaching and other interactive training options.


More focus on conversations

Regular conversations can do wonders in the overall performance management of an employee. But conversations should be strictly conversations, not evaluations. Employees must be able to talk with managers about any personal and professional matters. Managers must regularly converse with the organization employees. The conversation topics may include everyday feedback, month-end reviews and planning, goal making, goal status check-ins, career talks, and compensation conversations.

Managers should talk about both the career and personal matters with employees so that they feel free to share anything in a more friendly way.

More reliable performance systems in place

Many companies have already ditched or planning to eliminate the traditional rating based performance systems. The rating system is said to have increased depression among employees. It has to be replaced with a more reliable and healthier performance management plan. Although many companies and even media are claiming that the companies who remove performance ratings usually face a decrease in the workforce performance, but this is only true if the old system is not replaced with a better one.

A reliable system is still needed to ensure that organization employees receive regular, valuable feedbacks from the upper-management. The companies who have already started using one such system are likely to grow further in terms of employee satisfaction and performance.

Many new performance management tools are being launched in the market. A good tool will follow all the latest performance trends and some more. It is crucial to have a reliable performance management framework in place to ensure regular and healthy communication between managers and employees.


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