Long gone are the days of annual performance reviews. Companies are now turning to something more efficient: continuous one-on-ones, check-ins and short meetings.
Millennials thrive on monthly, and even sometimes weekly, check-ins. They prefer to know what they're doing correctly, what they need to improve and if their approach is working. It's crucial for Millennials to have an open line of communication and collaboration. This helps them be successful. After all, this is what they’ve grown up doing, communicating, all the time.
Companies are venturing down a similar communication path as it relates to performance. Frequent feedback, versus the dreaded annual performance review. This new approach saves time, creates ideas and gives answers when they're needed. There is a big disconnect between annual performance reviews and real-time feedback. More often than not, work that employees conducted a year ago are no longer relevant to the company.
According to The Washington Post, 10% of Fortune 500 companies are taking this new performance review idea and shaping it to what best suits their company. A few companies that have put an end to the annual performance reviews are General Electric, The Gap, Adobe and Accenture.
Because Millennials hold the largest generation segment in the workforce, it's important to understand how they create success. In a Fast Company article, it discussed a research survey published by TriNet and Wakefield. The survey analyzed 1,000 U.S. Millennial employees and their feelings regarding annual performance reviews. These are some insights from the survey:
- 62% felt blindsided by performance reviews
- 74% felt "in the dark" about how managers view their performance
- 22% called in sick because they were anxious about their review
At the same time, 69% also feel that reviews are necessary for improvement, growth and success within their company. For this reason, companies are welcoming the new, modern approach to check-ins and to better bridge this gap and end the disconnect, SAP SuccessFactors has created a solution: Performance and Goals.
Performance and Goals is an online portal that allows managers and employees to connect and keep an open conversation about goals, achievements and improvements. It works continuously to help employees improve their work by allowing managers to provide feedback. Instead of only telling employees what they're doing wrong, Performance and Goals allow managers to educate and coach employees on what's working and what's not. Because of the system's ability to provide an internal, overarching view of the company, Performance and Goals give management the necessary and needed tools to keep their line of work running smoothly and efficiently.
Performance and Goals helps managers connect better and be more transparent with Millennials to help guide them to success within their company. It’s the modern approach to increasing productivity through accurate, timely and appropriate employee performance feedback.
To learn more about how Performance and Goals could improve your company’s productivity and increase employee engagement, watch this solution overview and schedule a personalized demo to see it in action.
