This blog is brought to us by MRA Global Sourcing
An increasingly contingent and increasingly young workforce is challenging traditional employee management programs. Even leading companies have to consider more flexible staffing models, quicker avenues of communication, and more nuanced hiring practices. Even if they hire the perfect Procurement professional, retention has emerged an increasingly complicated issue.
To retain top talent and optimize Procurement’s value, many employers are rethinking their approach to performance reviews. In the past, conventional wisdom suggested an annual review was sufficient. Today’s sourcing professionals, however, demand more regular and more detailed assessments of their work. Managers are responding by introducing new transparency and flexibility to the process. Failure to do so could mean losing top-notch individuals to more forward-thinking companies and missing out on opportunities to develop employee skillsets.
Recently, the Institute for Corporate Productivity surveyed leaders from 244 companies. 67% of respondent said that they are actively reworking their performance management operations. More than half of these companies are doing so because of internal feedback.
Consider these four strategize for modernizing performance reviews within your organization:
1. Make Performance an Ongoing Conversation
Don’t save suggestions and constructive criticism for an annual session. Instead, find ways to work feedback into regular conversations with you employees. This could mean setting up quarterly, bi-weekly, or even weekly sessions. Check-ins remind employees that their managers are committed to their long-term success. These reminders should keep employees engaged and motivate them to continually produce great work.
2. Embrace Career Pathing
Establishing clear career paths means actively investing in your employees’ professional development. It reflects a proactive, strategic approach to management. The process requires managers to sit down with their employees to determine what they hope to accomplish. Learning their employees’ personal aspirations and interests enables managers to take a more participatory role in their professional growth. Together, they establish a tangible plan of action for reaching these goals.
3. Create an Open Culture of Feedback
Mutually beneficial performance reviews depend on honest, open lines of communication. This kind of dialogue is only possible within a culture of workplace transparency. Employees should feel comfortable sharing their questions and concerns with management. Additionally, criticism should be delivered in a constructive manner. Leadership can encourage comfortable communications by keeping everyone informed of changes in the office and encouraging all employees to speak up when necessary.
4. Ensure Reviews are Fair
According to a recent Gallup poll, only 29% of employees believe they've gotten fair performance reviews. The organization suggests that irregular reviews contribute to these feelings. A yearly review can hardly account for all of the shifts that occur over twelve months. Gallup proposes that managers can remedy this situation by establishing more realistic benchmarks. Tailoring expectations to the actual time and resources employees have will make for more effective reviews and better workplace relationships.
Performance reviews aren't going anywhere, but it's clear some changes are in order. Today's Procurement professionals want frequent, constructive, honest, and realistic assessments of their performance. The companies that best meet these evolving needs are most likely to attract, retain, and optimize industry leading talent.