Personalized Performance Management is Essential to Meet the Needs of the Workforce of the Future, Finds New Accenture Strate...
April 14 2016 - 8:27AM
Business Wire
89 Percent of Employees Believe Their
Performance Would Significantly Improve with Changes to Performance
Management
Today’s performance reviews are becoming irrelevant, according
to a new study by Accenture (NYSE:ACN). The Accenture Strategy
study finds that 77 percent of business leaders and employees
believe that a personalized performance management approach should
be mandatory to meet the needs of the workforce of the future.
However, only one third of organizations (34 percent) have moved
away from more traditional annual performance management.
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The Accenture Strategy report, Is Performance Management
Performing?, shows that while 94 percent of workforce leaders
believe performance management improves business performance, only
39 percent of them think their current practices help to achieve
their organization’s business objectives. Workforces are demanding
action: three-quarters (73 percent) of respondents say that their
employers should change their performance management practices.
On a personal level, almost two thirds (65 percent) of employees
do not believe performance ratings accurately and objectively
reflect their performance, and 58 percent of them say that the use
of ratings creates a negative experience for everyone except the
few at the top. However, dropping current approaches entirely may
not be the answer. The vast majority of both leaders (92 percent)
and employees (89 percent) believe traditional rankings and ratings
should have some role in determining rewards in the future.
“As the workforce becomes more diverse, organizations need to
treat their employees as individually as they treat their
customers,” said Deborah Brecher, managing director, Accenture
Strategy. “Performance management needs to be radically modernized
to suit the needs of the workforce of the future.”
There is a widespread desire for transparency. Seventy-nine
percent of leaders (and 69 percent of employees) accept that making
performance management transparent to employees is expected and
necessary in this era of open information sharing. However, only 32
percent of leaders and 27 percent of employees indicate that they
have experienced an increase in the openness of performance
management.
The trend points towards employees having a greater appetite for
sharing information. Three quarters (74 percent) of employees
discuss details of their salary and performance evaluations with
colleagues, while 60 percent share details of their salary and
opinions about their leaders on public social sites. What’s more,
51 percent of employees would be comfortable if their own salary
information was visible to their colleagues.
“The expectation to access and share information extends from
the consumer world to the workplace, and employers can’t ignore
this when it comes to performance management,” said David Smith,
senior managing director, Accenture Strategy. “Social media,
crowdsourcing and other techniques must become part of the
reinvention of performance management. They can provide true
transparency, and support the real-time coaching and personal
conversations expected by today’s workforce.”
Digital technologies have the potential to transform
performance management
Workforces recognize that technology will have an important part
in modernizing performance management. The majority of respondents
are positive about the potential impact of performance tracking
technology, although leaders are consistently more optimistic than
employees. Sixty-eight percent of leaders and 53 percent of
employees are comfortable with technology tracking their
performance at work. Furthermore, 78 percent of leaders and 64
percent of employees say performance tracking technologies will
change the future of performance management for the better.
Big organizations can learn from their smaller
counterparts
The Accenture Strategy report shows that employees at larger
organizations are less satisfied with performance management than
peers at smaller organizations. Additionally, smaller organizations
report more changes to performance management practices over the
past five years and are more eager to see further change (85
percent versus 66 percent). Smaller organizations are also more
likely to be using crowdsourced feedback and experimenting with new
technologies.
Prescriptions for Revitalized Performance
Accenture Strategy’s recommendations for organizations that want
to improve their performance management approaches, include:
- Help supervisors provide
constructive conversations and real-time coaching.
Conversations must be forward looking and focused on building
strengths rather than correcting weaknesses.
- Embrace simplicity and
transparency. In place of time-consuming competency
assessments, and ratings and rankings, modern performance
management must be simple in order to improve organizational
agility.
- Personalize performance management
across the workforce. Organizations are increasingly
customizing coaching and feedback, the goal-setting process and
types of rewards and compensation based on the needs of each
individual employee or segments of the workforce.
- Clearly define high performance.
High numbers of workers feel performance management does not
accurately identify high-potential employees. Organizations need to
radically rethink the very definition of high performance by taking
into account collaborative work, the ability to quickly learn new
skills, as well as cultural criteria they want to encourage.
Learn more at
www.accenture.com/IsPerformanceManagementPerforming.
Follow the debate at #futureworkforce.
Methodology
Methodology: From December 2015 to January 2016 Accenture
Strategy surveyed 1,050 leaders and 1,050 employees from 12
industries, in 11 countries covering: Asia-Pacific, Europe, Latin
America, and North America. Our objective was to understand how
performance management needs to be refined and updated to better
support next-generation work practices, as organizations transform
into digital, collaborative, networked businesses that need to
attract and retain a new generation of workers. The term leaders is
defined as respondents in a variety of roles at all levels with
supervisory experience over teams and/or groups. Additionally,
small organizations are defined as those with 100-499 employees and
large organizations are those with greater than 500 employees.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions – underpinned by the world’s largest
delivery network – Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With more than 373,000
people serving clients in more than 120 countries, Accenture drives
innovation to improve the way the world works and lives. Visit us
at www.accenture.com.
Accenture Strategy operates at the intersection of business and
technology. We bring together our capabilities in business,
technology, operations and function strategy to help our clients
envision and execute industry-specific strategies that support
enterprise wide transformation. Our focus on issues related to
digital disruption, competitiveness, global operating models,
talent and leadership help drive both efficiencies and growth. For
more information, follow @AccentureStrat or visit
www.accenture.com/strategy.
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version on businesswire.com: http://www.businesswire.com/news/home/20160414005167/en/
Accenture StrategyTourang Nazari, +
1-202-322-4640tourang.nazari@accenture.com
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