69% of employees state Employee feedback is the compass that leads individuals and teams toward greater performance. So the companies are replacing their traditional performance review systems with feedback oriented systems.
Industry leaders like GE, Accenture, Deloitte, Amazon, Facebook announced that they are done with their inefficient performance review processes. They replaced their performance reviews by getting rid of rankings and implemented frequent feedback systems to enable employee growth.
The better employees feel about their overall experience, the more their enthusiasm will translate to higher customer satisfaction. This virtuous cycle fosters a critical need to engage employees and collect their feedback. Being a company that listens is the secret to increasing employee performance.
So: How do we build a feedback culture and become a company that listens?
Unfortunately, feedback is often inconsistent and difficult to apply. Most of the time, both cultural and technical problems challenges the establishment. A number of factors get in the way: Constraints on time and attention, process complexity, and management disinterest among them.
On top of all that, it is not helpful if people simply complain. Instead you want them to give each other constructive feedback. Without some framework with which to do so, however, average employees may not know the best way to go about it.
The most effective way to overcome these hurdles is by establishing a feedback culture and deploying a modern performance review system based on clear, actionable feedback. Such a system transforms the feedback process into one that adds value for managers and frontline staff.
According to the “Society for Human Resource management Survey, 2016”, Annual performance reviews are quickly becoming old fashioned, with 95% of managers saying they are unhappy with how reviews are conducted. At the same time, 90% of HR leaders question whether the information received is accurate.
With that in mind, modern companies that plan to gather real value from feedback are leaving old-fashioned performance review systems behind. These requires implementing tools that facilitate frequent feedback and enable continuous improvement.
The modern, frequent feedback based, performance review systems offer all of the benefits below:
1. Higher Employee Satisfaction
Actionable feedback is one of the most important factors in maintaining high employee performance. Pertinent feedback increases engagement and helps employees feel involved. The best performance reviews offer timely recognition of achievements as well as points for improvement: A performance review system ensures a full-spectrum review raises morale.
Do not forget, if you want your customers to be happy, you need your employees to be happy.
2. Greater Employee Loyalty
Feedback clears a pathway for professional growth. The opportunity for continuous, goal-driven improvement helps cultivate leadership at all levels of your organization. A review system shows that your people are a priority. That not only makes an impression on employees who have other prospects, but helps distinguish you as an employer of choice that can attract top talent with the trust culture at the workplace.
3. Better Talent Development
Promoting from within is more efficient and cost-effective than a long outside search. Concrete feedback is the fuel that powers your talent development engine. Your employee review system will help you put feedback in context, giving employees real insights into how they can strive. That, in turn, can help you optimize talent development and recruitment.
4. Faster Reporting Turnaround
With developments in technology and near-total mobile device penetration in business life, companies are focusing on real time basis feedback. By contrast, traditional feedback models have a long lifecycle: It can take weeks to craft reports for everyone. With the templates and tools provided by an employee review platform, you can ensure your team gets feedback while it’s still fresh – while leaving managers and HR free to focus on high-level tasks.
5. Superior Calibration of Results
Feedback is most valuable when it’s 360 degrees and comparable over time. A performance review system will centralize feedback across all employees, departments, and units, giving you everything you need for a uniform and distributed feedback strategy. Plus, a feedback system surfaces highlights for individuals across reporting periods which makes you fully aware of their improvement in key areas.
6. Simplified, Efficient Processes
Managers are often resistant to investing time and effort in performance reviews. Just like many employees, they have difficulty connecting their input to real results. A performance review app simplifies the process of creating and distributing feedback. That turns it from a chore into something that more easily integrates into management workflow across departments.
Today’s managers spend about 210 hours annually on performance management, and employees about 40 hours. A new system is the key to cutting that number by 75% or more. 69% of Employees state timely, positive reinforcement as a motivating factor!
7. Best Practices in a Box
HR offices across the country are responsible for facilitating employee feedback, but there are a dozen conflicting frameworks for doing it. A modern performance review systems, focusing on real-time feedback exchange using mobile devices, will help you end paralysis by analysis and more forward with a clear, consistent approach. Your reporting module will help you track outcomes over time and link feedback to KPIs that really matter.
It’s time to get excited about all the potential performance reviews have to strengthen your team. A new real time feedback based performance review system will supercharge the process and bring feedback to the next level.
To find out more or get started, contact us today.