Wondering if your company is OKR ready?

Wondering if your company is OKR ready?

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Building A Better Framework For Continuous Performance Management

24 December, 2022
5 mins

It’s high time companies stop conducting performance review practices promoting poor employee engagement. Even after so much technology penetration and remote working, some companies still use annual performance reviews. Employees and managers have expressed disappointment with this traditional performance review system.

As a result, 81% of HR Managers and leaders are shifting to new performance management practices.

Performance evaluation systems are becoming more continuous. The main benefits of this are that the team works more closely and willingly. It becomes easier for leaders to motivate their employees and enable them to be more productive. Successful continuous performance management, however, is not easy to implement; people must go through a lot of practice.

Performance Management
Business growth and strategy concept illustration

 

The elements of an effective continuous performance management structure

Some organization teams already have smooth communication and collaboration going on between them. Their leaders have understood the importance of recognizing high-performing people and constant feedback. As a result, the team is inspired to work efficiently toward the company’s vision.

You can categorize all the major and minor processes into these components, 

  • Goals/OKRs (Objectives and key results)

In simple words, no team can work without goals. The group starts by carefully planning the business strategy and OKRs, then moving on to implementing them company-wide.

  • Two-way feedback

It should be the continuous flow of feedback from leaders to employees and vice-versa with the motive to improve performance and enable professional growth.

  • Free-flowing Communication

Honest conversations between team members that support active collaboration.

  • People Recognition

Appreciating the performance of deserving people with different methods.

Some practices to create a better framework for continuous performance management

  • Delightful onboard experience

A smooth and easy onboarding experience leaves a lasting impression on the new employees. This step can also communicate the company culture to the new person.

Train your HR people and support them using specific HR tools that create a delightful onboarding experience. For example, you can complete all the paperwork on software and automate email messages step-wise. Moreover, a warm message from the managers and founders communicates the value of free-flowing conversations at the company.

  • Support from the leaders

Work culture is established when the people in an organization are committed to specific processes and methods. Whatever initiative the team brings in, if the leaders don’t say yes to it, it cannot scale.

Continuous performance management demands active participation from everyone in the organization, so ensure that the leaders commit to the process.

  • Communicating goals and managing them well

It’s hard to keep track of the goals-based messaging and conversation going on in the company. If you use spreadsheets, you know how difficult it can be to collaborate and bring a group to it.

A goals/OKR management software is designed to effectively manage OKRs by bringing everyone on the same platform to discuss the progress. For example, JOP’s multi-functional OKR software.

  • Employee surveys

Not everyone can raise their concerns and opinions in front of the managers despite the welcoming workplace culture. Anonymous employee surveys are an excellent opportunity to see how continuous performance management works.

You can also gather helpful insights on improving the performance evaluations at the company.

  • Effective recognition methods

Recognition matters a lot to people who are a part of the team. With continuous performance management, employers have many opportunities to recognize employee efforts.

One interesting part of recognition is that tangible benefits are not the significant drivers of employee engagement. 79% of the workers say they would perform better if recognized more.

It’s important to acknowledge the employee’s achievements publicly and encourage peer recognition; it motivates people.

  • Psychological safety

You cannot expect a smooth two-way conversation at work if people feel fear of speaking up in their minds. You can optimize the business strategies better and drive innovation by letting the team members share their suggestions and feedback.

  • Prioritizing transparency

Guesswork and assumptions can lead to ineffective strategy execution. Employees at many companies don’t know their most important business goals at any time.

A goals-based framework like the OKR methodology supports continuous performance management by listing clearly defined OKRs that are public to the whole company irrespective of their working location.

Transparency becomes more important for remote working people as it helps build trust between them and the company.

  • Supporting active collaboration

Collaboration in the workplace today is incomplete without technology products. Employees at small-sized organizations have a better opportunity to engage more with the team, but it’s also possible to establish a great collaborative work environment at large organizations.

You have to find out the best efficient ways to conduct operations. It does not mean you give the team a bunch of tools but knowing what enables them to achieve agile collaboration and high productivity. It gives them a chance to involve in better conversations.

  • Giving growth opportunities to employees

An organization cannot grow unless its people grow in skills and capabilities. Significant career growth opportunities promote employee engagement and fulfill continuous performance management.

Employees must actively receive and request feedback to know where they are lacking and how to improve.

  • Leveraging data

People can only improve their performance when they understand the obstacles, their progress, weak areas, and ways to improve. Careful data analysis can give the team helpful insights.

Companies can better manage the data with a performance management tool. The software records measurable data and displays it in easy-to-understand visual reports.

If you want to start with a robust goals-based business strategic plan that supports continuous performance management, we can help you launch it. Reach out to us to know more.

FAQs

  • What’s the link between OKRs and continuous performance management?

OKRs are the starting points for creating business strategies at the team level and form the basis for measuring the progress of individuals, teams, and organizations.

OKRs provide a common language for the employees when they collaborate and discuss performance.

  • What are some helpful performance management tools?

Remember that a performance management tool should not be an obstacle to employee productivity but enhance it.

Here are some helpful and multi-functional performance management tools

  • BambooHR
  • Lattice
  • Leapsome
  • 15Five
  • JOP

  • What is the difference between performance appraisal and performance management?

Performance management is an ongoing process that happens throughout the year. People engage in continuous conversations, two-way feedback, progress monitoring, recognition practices, etc.

Performance appraisals are employee assessments that are generally written once a year. They can be of the following types: Yearly performance reviews, peer reviews, 360-degree appraisals, and self-assessments.