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5 Trends That Will Reshape The Future Of Performance Management

Thursday, 29 October 2020, 13:11 Hrs

COVID-19 has fundamentally changed the world of work. Performance management process has been experiencing a significant shift in view and effectiveness over the past few years, but pandemic accelerated the process further.

The introduction of new generation employees has driven a lot of change in workplace behaviors. Annual rating-based performance appraisals are slowly fading away to continuous performance monitoring.

While the annual approach is still used in most companies, an increasing number of organizations have concluded that their performance management approach and methods are both outdated and ineffective.

PeopleStrong presents a detailed report of responses, analyzed from a Performance management survey, which was conducted by PeopleStrong. Over 250 organizations participated in the survey, where leaders, CEOs, HR heads and managers, all expression their views on the future of Performance Management.

Thus, these are the 5 trends in employee performance management that one can expect in the next 3 to 5 years:

Trend #1: Mentorship Culture, For the Future

75% Senior HR Managers from the respondent group agree that collaboration, constant communication and a mentorship culture between managers and teams will become the future mandate of a high performing workplace

Trend #2: Driving Growth Mindset

Growth focused sentiment currently runs high amongst manufacturing industry, as they have been impacted by lockdowns the most. Respondents perceive that product innovation with faster execution will be the elixir that will keep them forward in already competitive marketplace

Companies are getting market ready to ride the next wave of change. It is of utmost importance to create a growth mindset withing employees and amongst teams

Trend #3: Collaboration Is The Key

When asked about enhancing output efficiency, 42.86% of the respondents from Manufacturing industry responded that a well synchronized network of teams would be the best approach in the future.

Trend #4: Outcome Oriented, To Remain Relevant

Focus on outcome rather than the process is slowly taking over organizational ideologies as enterprises are rooting for objectivity and looking beyond a simple checklist

Trend #5: Industries Have Different Focus in The Next 3 to 5 Years

BFSI - 83% Of the survey respondents feel that the industry should start focusing on a mentorship culture, where constant exchange of feedback is the key

Retail- 79% Of the survey respondents feel that the industry should start focusing on a mentorship culture, where constant exchange of feedback is the key

Pharma/Healthcare- 72% Of the pharma/healthcare industry is highly focused on being agile and fail fast, as innovation in terms of products and services is crucial in the current scenario

Logistics- 65% Of the respondents believe the logistics industry is bracing up for a major overhaul due to the pandemic, thus are leaning towards HRTech advancements that increase productivity by minimizing time, cost and errors.

Education Services- 60% Of the survey respondents feel that they need to reimagine their current products/services and have the ability to launch them at a faster pace

Internet Business/ IT- 57% Of the survey respondents perceive collaboration being the key to higher output, as most of the employees follow WFH model

Manufacturing- 54% Of the survey respondents perceive collaboration being the key to higher output, as most of the employees follow WFH model.