By Narayan Bhargava, Chairman & Managing Director, Calibehr Business Support Services
May 28 2022: Technology has long been redefining the standard operating procedure of in numerous verticals of the professional world, the newest, however, is use of technology to refurbish the talent and performance management sector.
There has been a paradigm shift in the way the human resource department works, the change in trend suggests that HR technology is one of the most innovative and advanced categories of tech world in the present time. From performance data to goal-setting and constant feedback to annual reviews and appraisals, technology has reshaped most conventional tasks surrounding employee management.
Most organisations nowadays, draft their own unique performance management system to identify and measure their employees’ productivity, growth and goals.
These functions are the same as ever but what has changed is the procedure of performing them. Earlier all these tasks were performed manually via lengthy paperwork but now there is a software of every task, be it small of huge involving thousands of employees. Using technology for these tasks related to employee performance and talent management not only establishes a level of transparency and accuracy but also tracks real-time performance and employer’s feedback and aids the process of appraisal. Thus, instituting higher employee engagement and satisfaction that further leads to enhanced performance.
Adapting HR technology also means getting rid of the traditional model of annual performance appraisal. Several organisations have now given up on the process of appraisal to evaluate employees’ promotion, increments and compensations because according to the contemporary approach these methods are designed for performance measurement instead of performance management.
A study by Aberdeen showcased that companies that have best-in-class talent management programs are actually 26% more likely to be using performance management software.
To understand how technology has escalated the evolution of performance management system let us see an example. In the present scenario, an increasing number of organisations are taking up the OKR (Objectives & Key Results) based performance management. Under this, organizational objectives are clearly reflected across the staff, and every employee goal is in accordance to these objectives. Performance in an OKR based approach is measured from time to time according to these objectives and the underlying key results.
A tech-powered performance management system contains competing objectives and frequent assessment module. It can seamlessly integrate multiple needs and preferences. Goals can be mentioned for both individuals as well as the teams. More importantly, real-time feedback is recorded, allowing for goals to be reviewed and monitored on an as-is basis. All these features and specification enable the employees to monitor and enhance their performance without any instructions from their superiors thus giving them an idea of responsibility as well as liberty.
With the rapid advent of HR technology, the way tasks are performed in an organisation has fundamentally changed. Now, there’s an increasing emphasis on the employee experience, companies worldwide are putting greater attention on mental health and flexibility for employees.
Performance management software also helps in crafting a more adaptive, effective and comprehensive system. It enables the employees to feel more aligned with the company and its vision and build a greater level of loyalty as well as productivity. The continuous feedback mechanism also helps the employees to gain a better understanding of what is expected from them, or the points where they are lacking behind, thus making performance assessment extremely measured and transparent.
With organisations adapting the HR tech, it is becoming clearer that the future of performance management lies in tech-enabled continuous evaluation, in tracking rather than measuring, and in lead measures as opposed to lag measures.
Narayan Bhargava, the founder Chairman and Managing Director of Calibehr, is a chartered accountant, cost accountant, businessman, philanthropist, investor, humanitarian and serial entrepreneur