Over the last five years, organisations have radically changed the way they measure, evaluate, and recognize employees’ performance. Today, continuous performance management practices are deployed on a wide scale. New practices, such as agile goal management, check-ins, and continuous feedback emerged and new models of  performance evaluation and rewards are currently being adopted by different organisations. The redesign of performance management is picking up speed: 79 percent of ex­ecutives rate it as a high priority, with 38 percent considering the topic as “very important.” The impact of these new performance practices is high: 90 percent of companies that have redesigned performance management see direct improvements in employees’ engagement, 96 percent say the processes are simpler, and 83 percent say they see the quality of conversations between employees and managers going up.

What are some of the key steps that an organisation can follow to improve its employee performance management system?

- Identify a strategy and philosophy for performance management

- Look at peers

- See what is working

- Tailor performance management to strategic and organisational needs

- Upskill managers in coaching skills

- Put it all together


In the future, leading companies will create a continuous, highly agile process among employees and teams, as well as among employees and leaders. Many will take advantage of new software tools that integrate performance management into daily work and use the greater quantity and richer quality of data now available. The dreaded end-of-year evaluation will be gone, replaced by continuous feedback flow between employees and managers.

These changes are not merely new processes, but rather new organisational muscles. As such, they will take time to develop and need constant exercise to maintain. However over time, they will become stronger. Performance management changes that seem difficult in the early stages of transformation become more natural over time. As trust grows, feedback becomes more direct and constructive, and changes are accepted.


Look for our next article on leadership trends to understand how the emergence of the digital organisation affects it.

Should you wish to have more information on performance management do not hesitate to contact Karine Pontet, Director Operations Excellence and Human Capital Advisory (kpontet@deloitte.lu).


By Deloitte Luxembourg

Publié le 08 mai 2017