2016 Trends in Performance Management

The world of performance management continues to change. Just like most business sectors, it is very different from what many were used to seeing a few years back. The older, data based methods of the past are being replaced with newer, trendier techniques. Here are some of the changes that have been pushing the trends in 2016;

Performance Ratings

The likelihood of employees being rated on number scales will continue to reduce. Companies are beginning to realize that it only breeds competition and leads to a less productive workforce. Instead, companies are adopting a goal based approach, evaluating employees through the determination of how much they contribute to company goals. Business leaders also continue to resist the temptation to make decisions based on number program analytics. Instead, they should focus on improving their satisfaction to deliver better, longer term results.

Annual Reviews

Companies are realizing that annual assessments are an inefficient way of measuring employee performance. They essentially mean the employee has or is given about an hour to discuss how they are doing, then the rest of the year to forget what they discussed with the management. Instead, more companies are focusing on a conversation based approach. When done frequently, the issues discussed remain fresh in the employee minds. The management is also kept aware of the needs of staff members.


Diversity continues to be one of the more important aspects of employee performance. In 2015, many sectors, including the entertainment sector, complained of such discrepancies as lower wages of female actresses, or less African American actors and actresses winning awards. Appraisal management software might not necessarily capture this, but women receive a bigger amount of critical feedback compared to male counterparts in some sectors. As employers continue to look into employee satisfaction, they will take on ideas that recognize and improve diversity in the workforce on all aspects.

Professional Development

The needs of the millennial generation always seem to elude the typical employer; at least until now. It is becoming clearer all over the world that people in this age group consider leadership development very important. They are highly likely to change jobs in the search for an employer who cares for their needs. Turnover rates for the younger employees will therefore depend on whether opportunities for professional development are provided to them.

At Engagedly, we know just how important employee management is, and how difficult it can get without the right tools. We offer the very best in performance reviews, goal setting, 360 feedback and recognition software. Call (650) 485-1642 today for a demo.