Outdated performance data ‘dangerous’ to business success: StaffCircle

For HR leaders to create and foster harmonious working cultures, employee performance management needs to be well-managed, yet according to a report from StaffCircle that surveyed 1,000 employees and 250 HR professionals, businesses are underperforming.

Checking in with employees, scheduling performance reviews, and organizing employee feedback are some of the most crucial components of employee performance management. However, these initiatives can easily slide down the priority list of managers and HR teams.

And taking a finger off the pulse can have a direct impact on employees and businesses alike, with 21% of those surveyed reporting that they do not feel engaged in their current role. Although this statistic may be less than one-quarter of the workforce, low engagement rates from employees are costing the global economy US$7.8 trillion.

“Retaining top talent is vital in this economic market and the key to winning here is aligning individual and company goals, empowering employees to succeed and grow,” says Lewis Staples, vice president of marketing at StaffCircle, a HR and performance management platform.

Employee experience can however be improved by HR teams implementing an in-depth performance management strategy, which the report explains is “key” to increasing engagement.

However, 21% of employees reported that their organization has no performance management process in place. Likewise, only 48% of HR leaders had strong confidence in the accuracy of their performance management data.

One way in which HR leaders can encourage this change is by encouraging managers to set and complete regular check-ins with their teams.

Increasing the number of team check-ins is by no means a groundbreaking or revolutionary solution, yet research suggests 76% of employees only receive check-in with their manager once each month, and only 15% have a weekly conversation to discuss performance.

Of these, 54% stated that without regular checking, they’re more likely to leave their current organization.

Embracing technology and prioritizing the younger generation

Raising an important question, the report asks: “If companies aren’t collecting the right data at the right time, how can they expect to understand their employees?”

Dubbing outdated and inaccurate performance management data “dangerous” to business success, it highlights the importance of utilizing modern systems, although 49% is still logged on paper or spreadsheets.

Technology is also impacting the way in which HR teams respond to employee performance management processes, with 77% of organizations having introduced new digital processes to support their employees.

Additionally, 41% of employee appraisals were conducted via HR software.

“As we move towards 2024, employee performance management is continuing to be a critical focus for businesses,” Staples adds. “We are seeing more and more, HR Leaders have designed employee-focused people strategies, however legacy technology, manual or paper-based processes, and a lack of data are creating bottlenecks that are hindering progress.”

And HR teams have noticed this shift in employee expectations, with 77% stating they’ve noticed a rise in employees demanding more feedback and flexible working.

The report does credit HR leaders with attempting to change this, with 67% of organizations stating they’re prioritizing Gen Z and future generations. In contrast, 69% of these employees don’t believe that their organization will make these changes, suggesting that although there are changes being made, HR leaders may not be making the right ones.

To meet the needs of Gen Z, 60% of HR leaders recognize the need to prioritize providing more frequent reviews, as well as flexible working hours, remote working, salaries, and recognition.

Yet with younger generations – specifically Generation Z – demanding to “see companies passionately uphold their principles and stand by what they advocate,” – can HR leaders really afford to wait?