All You Need to Know About Performance Management without Ratings

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Recently in performance management, a lot of changes have been observed.

According to a survey, more than 66% organizations stated that they are redesigning their performance management practices. Many organizations are thinking to change their criteria from the traditional performance management with a rating to modern performance management without rating practices.

According to CEB Global survey of 2016, more than 9,000 HR managers and workers have been surveyed about the after-effects after their companies stopped using performance ratings. The result of this survey is that fewer than 5 percent of managers said they knew how to effectively manage employees without ratings. Over 70% of the employees think that there should be a better way to appreciate their talent. Hence, we can safely say that the rating system for performance management is outdated.

Five things you need to get success in Performance Management without the ratings:

1. Define The Expectations Clearly:

The Performance Management System cannot work if everyone doesn’t know the exact expectations. Both the managers and employees must have an idea of what an ideal performance looks like for a particular employee. This needs an in-depth discussion with all employees about their roles and responsibilities and how he or she is going to achieve those particular goals.

2. Include a real-time feedback:

One of the major issues with conventional performance ratings is the delay in recognizing employee’s performance. Employees need to wait for quite a long time to be rewarded. Then to make it worse, they simply get a paper that says they've got a 5 out of 5 rating.

Giving real-time and more frequent feedbacks enable managers to recognize employees better. It can be difficult for managers to go from a normal feedback system to real-time feedback system. Simple comments like saying "a great job" or "thank you" are initial steps to get managers in the propensity for providing real-time feedback. These feedbacks make a great impact on employees and they adopt a mentality to work even harder.

3. Put Colleagues into the conversation:

Colleagues tend to have a great impact on each other. This is mostly because the employees work firmly together and are better in tune with each other’s needs than the managers, and that makes their feedbacks extremely effective. By incorporating their feedback, managers will have a clear picture of what's going on in the team. It will enable the manager to give better guidance and support.

4. Focus on the future:

Performance review is not about the mistakes that have been made by an employee in the past, but it’s about the future. There is no way to rectify the past mistakes, so it makes sense to focus on future performance and develop employees according to that.

Rather than giving two stars at the end of the year saying “You made a huge filibuster”, it’s better to correct them on the spot which will help them to find a solution and make sure not to repeat the error. By being aware of the situation, future mistakes can be saved.

5. Regular Follow-up:

Just having a discussion on the employee's performance is not enough, you have to take regular follow ups. By simply asking “What’s the progress on today’s work?” you can create a bond with your employees. It also keeps you updated on the tasks that your employees have been up to. Meanwhile, you can correct them during the process and make the task A-One, rather than busting them after the task is over.

Final Thoughts:

Performance management is not just about your employees, it’s also about you and your business. By effectively communicating throughout the period of time, you can create a special bond with your employees. It is way better than saying “Your performance was disappointing this year.”

Sanjay Darji

I'm Sanjay Darji and I'm currently working in marketing and communications. My interests include asset management, performance management, CRM, human resource, payroll management, real estate CRM and all things digital.

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