Current trends in performance management and the role of technology (Stuart Hearn, Founder, ClearReview)

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The Journey from Annual Appraisals to
Continuous Performance Management
Stuart Hearn | Co-Founder, Clear Review

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Current state of Performance Management
Dissatisfaction with performance management is at an
all time high
Yet we’re investing huge amounts of time and money in it
95% of managers aren’t satisfied with
their organisation’s performance
management processes - CEB
75% of employees see it as unfair –
Towers Watson
Only 8% of companies report that their
performance management process
drives high levels of value – Deloitte
The average manager spends 210
hours on performance management
activities - CEB
Deloitte spent 2 million hours a year
doing performance reviews and
agreeing ratings

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Organisations leading the charge
2012-14: Early adopters
2015-16: Becoming established
2016 Onwards
89% of organisations are currently changing or planning to
change their performance management process
Deloitte Human Capital Trends, 2015

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The new Performance Management
Long-term objectives set and
reviewed annually
Near-term objectives set and
reviewed regularly
Top-down cascaded objectives
Employee owned objectives aligned
to organisational goals
Annual, past-focused performance
appraisals
Regular, future-focused check-ins
Once-a-year formal 360 degree
feedback
Ongoing, real-time feedback
Emphasis on completing forms and
measuring performance
Emphasis on developmental
discussions
Reward tied directly to ratings Reward based on many factors

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Companies are already seeing the benefits
Adobe’s voluntary turnover has decreased by 30% since
introducing Check-ins
Frequent feedback is now being described as ‘the killer app’ with
studies finding that it can increase performance by up to 39%
Since Cargill introduced ‘Everyday Performance Management’
79% of employees say they feel more valued as a result of their
ongoing performance discussions with their manager
Over 50% of companies where objectives are reviewed each
month are in the top quartile of financial performance compared
to just 24% where objectives are reviewed once a year.
Employees whose managers hold regular one-to-ones with them
are almost 3x as likely to be engaged.
Engaged employees deliver 22% more productivity

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Continuous PM in Practice
SMART
Performance
Objectives
Personal
Development
Objectives
Organisational
Goals
SUPPORTED BY
Regular
Check-ins
Frequent
Feedback
ENABLED BY
Taking Action
V
I
E
W
P
O
I
N
T
S

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Real-time feedback

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Check-in meetings with action points

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Collating performance & talent data

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Book a demo at www.ClearReview.com
Stuart Hearn | Co-Founder, Clear Review