The annual performance review — a joyous occasion for all involved (sarcasm) — is on its way out. That’s according to Bersin by Deloitte, which has summarized the findings of its recent study on performance management software (which evaluated 120 performance-management features from 46 software providers) in a new “WhatWorks Brief.”
Organizations are increasingly viewing performance management not as an annual assessment but as a series of ongoing activities that include goal-setting and revising, managing and coaching, development planning, and rewarding and recognizing, according to the study. However, HR will need to evaluate new performance-management software carefully, as not all will offer the same level of support for these activities, the study’s authors warn.
Continuous coaching, in particular, is becoming a bigger priority for many companies — yet only a subset of software applications support coaching management and tracking today, according to Bersin.
“There are many factors contributing to this focus on continuous coaching,” says Stacia Sherman Garr, Bersin’s vice president of talent and HR research. “Work is becoming more dynamic and fast-paced. We see the rise of a large, young generation of employees, along with a skills gap in both developed and emerging markets.”
Coaching, she says, is becoming a bigger part of the “employment value proposition,” where employees want individual feedback and to feel valued for their unique contributions.