In the past several months, many companies have modified their performance programs. From streamlining their review processes to running more frequent pulse surveys, organizations around the world are seeking to make changes that will ultimately boost employee performance and productivity.
Our company, Reflektive, sought to measure these changes with a performance management survey. In June we reached out to 445 HR professionals and business leaders, and 622 employees, to understand the current state of their performance programs. We compared these results to a similar survey we ran in 2018. Our 2020 Performance Management Benchmark Report uncovered meaningful performance management trends over the past two years, as well as insights into the current state of work.
Formal Processes of Performance Management Consistent Since 2018
A surprising observation was that the formal processes of performance management have not changed significantly over the last two years. Nearly half of reviews are run annually or less frequently. Forty-six percent of respondents use descriptive performance ratings, such as “meets expectations.”
People Analytics Present Big Opportunity
The survey also found that only 50% of HR and business leaders are using people analytics to predict performance and turnover. What’s interesting is that most leaders believe that people analytics has become more important, however they’re still not utilizing this technology to inform strategic people decisions. This gap can really impact workforce planning, as organizations struggle to fill needs when employees depart.
Employees Desire More Communication and Transparency from Companies
The employee survey results revealed that workers seek more communication to stay informed and engaged at work. Nearly half of respondents desire more consistent communication from leadership, and 37% said more consistent communication was needed from colleagues.
In a similar vein, we found that employees sought more transparency from their employers. Only 19% of employees believed that their organization was transparent about upward mobility. Twenty-one percent said their company was communicative about salary freezes, and the same percentage said that their org was transparent about potential pay cuts. Employees are cognizant of the pandemic’s economic toll, and would like their companies to be honest with them about the business impact.
Employees Seek More Feedback and Coaching for their Growth
Another interesting insight we uncovered was that employees want more from their performance programs. Specifically, they’re looking for increased coaching, dialogue and recognition from their managers. Since 2018, there’s been a 3.2X increase in the percentage of employees that desire recognition. We also observed a nearly 90% increase in the percentage of employees that desire formal feedback conversations monthly or more frequently.
A performance bright spot was the manager-employee relationship. Over 80% of employees surveyed said that they are having 1:1s with their managers. Additionally, 80% said that these meetings were productive. This data was really uplifting to me, since driving alignment and communication can be tricky when everyone is working remotely.
However, we did identify a major communication gap: only 20% of employees reported that they receive weekly feedback. So it appears that managers and employees are talking regularly about ongoing work and projects, but employees still aren’t receiving the coaching that they desire. This represents a huge opportunity for managers — they can benefit from training on how to ask important questions, and how to provide valuable feedback on a more regular basis. Performance management technology — including feedback prompts and 1:1 tools — can help drive productive coaching conversations too.
Getting Feedback Remains Challenging for Employees
One interesting discrepancy between leaders and employees was sentiment around initiating feedback conversations. Only 14% of HR professionals and business leaders felt that employees weren’t empowered to initiate feedback conversations. However, 30% of employees — or over 2X the percentage of leaders — felt that they weren’t empowered to request feedback. This discrepancy indicates that HR teams and leaders are overestimating employee comfort with feedback processes. Employee training on giving and receiving feedback, and an easy-to-use feedback tool, can help fill this gap.
Executives and Employees Remain Optimistic for the Future
While sentiment and outlooks are continuously evolving in 2020, both executives and employees remain optimistic about the future. Specifically, executives anticipate more investment in technology (35% of respondents) and more efforts to boost engagement and retain employees (29% of respondents).
Employees anticipate that six months from now, it will be business as usual (34% of respondents). Additionally, 26% expect to have learned new skills, and 25% believe they’ll feel proud of their accomplishments. Despite the many headwinds that they’re facing, employees feel that they will come out of 2020 stronger and more prepared for the future.
As employees, HR teams, and executives navigate the ever-changing environment, agility and resilience will be crucial. The ability to work productively in different environments, and collaborate cross-functionally, will be highly valued. Companies that maintain engaged and productive workforces will be the success stories of 2020.
This post is sponsored by Reflektive.