Posted: February 19th, 2022
Performance Management Systems
HR digitalization has had a huge impact on how organizations find, hire, and retain employees to combat rising turnover rates. In 2016, the average attrition rate increased from 11.6 percent in 2015 to 12.8%, while the average tenure reduced to around four years6,7.
The average duration of employees at Silicon Valley’s leading technology companies is less than two years.This strategy works because it invests in employees’ professional advancement while simultaneously rewarding them for reaching goals and objectives. However, present performance evaluation and promotion systems fall short of workers’ expectations. Managers no longer use paper forms to evaluate employees’ performance yearly or semi-annually. Today’s employees, especially new hires, want regular feedback on their work and the opportunity to discuss it with their superiors and coworkers.
In the last five years, new technologies have emerged that integrate Performance Management into managers’ and employees’ daily workflows, allowing organizations to move towards continuous feedback and performance rewards. This is although the impact of this cultural shift on staff retention is unknown.
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