There is now a clear consensus among top executives that traditional models of enterprise performance management (i.e., merit-based and forced ranking systems) serve no purpose in the digital age. Relics of a time when robust organizational hierarchies were the norm, 2020 has provided human capital professionals with a growing body of both qualitative and quantitative evidence that supports the cross-industry calls for change.
As we documented in part one of our performance management series, enterprise-level companies are navigating a whole new context for employee evaluation and appraisal. From talent shortages to changes in employee preferences, there are a number of factors supporting a new, humanized approach to performance management. With a renewed focus on people, not processes, companies can better position their employees to do their best work. Employees empowered with a sense of purpose are more likely to both remain with their companies for longer, and to develop the skills necessary to grow and succeed in their respective roles.
With this new reality in mind, here are five practices that can assist modern enterprises in improving performance management in the digital age:
1. Agile Goal Setting and the Use of OKRs
We all know that goals set the foundation