5 Performance Management Trends for 2015

December 17, 2014 - 3 minute read - Posted by

Are you ready to transform your workplace in 2015? Or are you doomed to repeat the same performance management process that failed to deliver value to your employees and your organization?

Revamping your performance management can be frightening for some. Especially if you’ve always relied solely on annual performance reviews (which we know don’t work). Yet, performance management isn’t the same thing as a performance review. So unless you’ve already included coaching, feedback, motivation, engagement, and improvement in your process, you’ve failed.

The good news though is that there is still time to change. Companies like Zappos, Moz, and Adobe, didn’t just luck into a high performing culture– they were early adopters of cool performance management trends.

Here are a few trends we see for 2015 and beyond:

1. Putting employees in the driver seat

Performance management is no longer the responsibility of a manager. Nor is it about forcing employees through a passive process that they can’t control. It’s now about putting employees in control. Just like a professional athlete that owns their career and works with the best coaches to excel, employees will now own their success.

2. Elimination of ratings and rankings

No one wants to be ranked. The negative impacts of rating and ranking outweighs any potential gains. Ranking employees is often subjective and leads to unhealthy comparisons to others. People want to know how they perform relative to their potential and unique talents, not against their colleagues.

“unless you’ve already including coaching, feedback, motivation, engagement, and improvement in your performance management process, you’ve failed.”

3. Performance improvement mindset

To change how we work, we first must change our philosophies. For a long time performance management meant an annual event, a process, or tool. Now it’s about creating workplace cultures that promote transparency and open feedback. It’s also about a constant strive to improve individual and team performance. It’s really just common sense.

4. Building alliances

Remember when managers hung out amongst themselves? The workplace has changed and relationships are based now on trust. Many companies are also adopting holacracy (a flattened structure). The future of the workplace will revolve around creating win-win alliances between employees and the company. This helps the employee advance their career, and ultimately helps the company improve performance. Again, more common sense.

5. Big Data and analytics

HR may be late to the game when it comes to big data, but they’re quickly making up ground.  In the next few years we’re going to see big data and analytics help us identify high performing teams and individuals, and disengaged employees. It will also provide predictive insights on how to increase performance, engagement, and reduce turnover.

What changes do you plan on implementing in 2015?