5 Key Benefits of Agile Performance Management
Can’t decide if your organization would benefit from agile performance management?
Many organizations still rely on annual reviews to evaluate employee performance. Research found that 95% of managers are dissatisfied with their organization’s performance management system, and 90% of HR leaders believe their performance management system does not yield accurate information. Also, women were 12-28% less likely to receive high potential ratings compared to men, due to the subjectivity in assessing “potential”.
But why? The reason is mostly evidence based: Employees of today thrive on ongoing coaching and feedback. Every year, they dread the feedback session and managers struggle to remember specific examples and often end up giving vague, generic feedback. The result? Disengaged employees who don’t understand how their work connects to organizational goals.
While we cannot throw the baby out with the bathwater, there is a better way to do performance management - the agile way. Agile performance management takes the emphasis off the annual review and focuses on continuous feedback and coaching. With an agile system, managers have ongoing touchpoints with employees to provide actionable feedback in real-time. Goals are collaboratively set and aligned to business priorities. Development plans adapt as things change. Most importantly, performance is measured through progress on outcomes rather than subjective ratings.
Following are the 5 key benefits of adopting agile performance management:
- Stronger alignment with organizational goals and objectives
- Increased employee engagement and retention
- Better employee-manager trust owing to timely feedback and coaching
- Focus on future goals and development areas rather than retrospective evaluation
- Identify, grow, and retain high-potential employees
Switching to agile performance management is clearly a win-win for both employees and organizations. Employees are more engaged because they get continuous feedback and have clarity on expectations. Managers become better coaches instead of once-a-year critics. Ultimately, organizations see improved alignment, agility, and performance.
Are you ready to reap the rewards of agile performance management? Sign up for our complete agile performance management suite to set better goals, drive more meaningful conversations, and build a culture of continuous growth.
