Research shows that managers spend an average of 200 hours on performance reviews and documentation per year. This is why companies are increasingly looking for performance management solutions that minimize wasted time and make reviews a more positive experience.
Traditionally, performance reviews and appraisals focused on past performance without any consideration for future accomplishments.
SEE ALSO: How to Transition Annual Reviews to Real-Time Feedback
One company in specific is revolutionizing the way that we think about traditional performance feedback by focusing more on the future performance rather than the past.
Out With the Old, in With the Future
IBM has leveraged Watson AI to determine what value and employee could potentially add to the company in the future.
By taking inventory of skills, projects, and accomplishments, Watson has been able to assess and advise IBM’s managers on pay decisions and promotions.
Though not every company will be able to leverage this advanced technology in the near future, there are many things companies can do to predict future performance to make smarter people management decisions.
Real-Time Feedback Can Help
Real-time feedback is one great way to capture data about performance in order to predict how well employees achieve and execute on their future goals.
Giving consistent real-time feedback within a system that tracks feedback will allow managers to draw connections between performance trends when review season rolls around so that managers can make those important decisions about their employees.
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Evaluations Should Measure More Than Performance
In order to foster a culture of growth, performance management should be forward-looking. By sticking to the old system of evaluating past performance, companies run the risk of remaining stagnant.
This isn’t to say that past performance isn’t a good indicator of future performance, but current, real-time data can paint a better picture of where an employee is going in a company.
This is why performance review periods should carve out time to discuss skill development and areas where skill gaps can be improved. Not only will this help develop and engage employees, but retention rates will also be higher, thus cutting down on wildly expensive turnover costs.
Companies who want to grow should be focusing on what their employees can do to learn and add value to the organization – rather than scrutinizing past mistakes and shortcomings.
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