Employee Performance Management Trends To Follow in 2023

The traditional employee performance management process has been under discussion for years and gradually organisations are changing how they manage the process. Even before the pandemic started in 2020, organisations were beginning to improve how they managed their performance management cycle. 

In 2019, 81% of HR leaders planned to change their systems, with 82% reporting that performance management wasn't achieving its objectives. Only 38% actually thought the performance management process was keeping up with business needs.

Therefore, you need to ensure that you are keeping up to date with performance management trends likely to occur or continue in 2023 so that you can be delivering what your people want while also aiming for optimal productivity and performance.

Working Patterns Will Influence Reviews

In 2023, organisations will continue to adapt to different types of working methods such as remote, hybrid, etc. 2023 will likely be a year when organisations start to build the long-term structure around such variables and ensure that performance management has been sufficiently adapted to consider the different working patterns and styles.

For example, the performance management cycle must consider how all employees are treated the same and their contributions are recognised whether they work in the office remotely or have a hybrid work pattern.

The Use Of Metrics

Metrics have played an important part in the performance management process for some time but will continue to be a central part of the process to ensure efficiency and effectiveness of the process. This may include diversity and inclusion and social mobility data to ensure that the right support process is available for underperforming groups in the workplace as a norm rather than when requested.

Technology And Data

The professional world continues to embrace flexibility, and this doesn’t exclude the performance management process. Systems or products that collect information about employee performance make it easier to access performance accurately all year round. And software that uses the cloud gives increased flexibility for everyone with an internet connection and mobile device!

Also, technology that allows feedback and evaluation anytime anywhere will be crucial for performance management when individuals don’t necessarily work in the same location or see each other very often. If others can also add feedback via the technology, it becomes the perfect one-stop shop for performance management.

‘Human’ Leadership

This year the essential need for authentic leadership will continue where leaders prove that they are focused on employees and demonstrate human leadership.

According to Gartner, such empathetic and adaptive leadership is a priority for 60% of HR leaders.

Such leaders will make the performance management process continuous, consistent, inclusive and approachable. However, when businesses are challenged and the pressure is high it can be difficult to step up to the challenge of being a human leader who consistently listens to and develops their people and his forward thinking in others' development.

A Coaching Approach

The pressure on managers to develop productive teams and people will continue this year as a talent shortage remains and hybrid working continues. This means that managers need to be trained or developed in effective communication skills and adopt a ‘coaching’ approach to develop their people. By coaching they can encourage feedback and listening and understand what employees need throughout the year.

In addition, managers must be able to understand each employee’s emotional state to ensure that they are tuned into emotional needs so that they can identify where development is required and wanted.

Learning And Development

If talent is hard to find or attract and organisations are limited in hiring more heads, then managers need to ensure that those people they do have are working effectively. Individuals should leverage their skills, be clear on the goals of their role and be working smartly. Organisations can create ‘capability academies’ where managers and leaders can offer internal support for an employee’s development and record the required development. 

Two-Way Ownership

While performance management has typically been managed and driven by the organisation, individuals also need to be responsible for their development and encourage and ask for feedback, learning etc if it is not occurring during the performance management cycle.

These will be some of the conversations managers are likely to have this year:

• Feedback – managers need to be giving continuous feedback to their people, but also collecting feedback from peers and other stakeholders to give ongoing and beneficial development. Technology like Sorwe can help with this.
• Continuous conversations – the days of the once-a-year appraisal meeting are outdated and performance conversations must be ongoing so that employees and managers are always aware of the current performance, progress achievements or development needs.
• One-to-one check-ins – such meetings could cover project deadlines, work status, employee wellness, learning or many other aspects of the employee journey. These in turn should help to build a culture of feedback and openness.

In 2023, it’s likely that performance management will focus on being a meaningful process for employees. Long gone are the rigid annual appraisals that are the same for everyone as the process needs to be more personalised for each person to engage employees and improve the employee experience. This will also ideally enhance business outcomes and technology will undoubtedly play a significant role in the process as it will personalise the process and provide autonomy.