Gone are the days when yearly appraisals were the only effective solution to a productive and functioning workforce. In recent years, companies like Facebook, General Electric, Adobe, Accenture etc. have been opting away from traditional Annual Performance Reviews and moving towards a more forward-thinking system: Continuous Feedback. Let’s relate this to how a soccer coach functions. He doesn’t wait for the players to finish the game to let them know what they’ve done. Instead, he yells out to the players while they’re on the field, offering to encourage, guidance, and sometimes much needed, kicks in the right direction. This real time feedback and advice ensures better game play and gets the goals!

According to Forbes, 65% of the employees in the world said that they needed greater and more frequent feedback than they already receive.This just isn’t possible with annual evaluations. Need more reasons why you should consider switching to a system of continuous feedback? Here are a few:

• Cost

This word drives businesses decisions the world around.  And HR is no exception. Attrition is expensive and rehiring is even more so.  One important way to reduce this cost to keep your employees engaged with their work and with the organization.  This includes continuously appraising and managing your employees. A study conducted by ‘Survey Analytics’ states that companies that implement regular employee feedback have 14.9% lower turnover rates.

• Productivity & Profitability  

These are the two Ps that every company runs on. Engaged employees are more productive. Keeping an employee regularly updated about the quality of their work and where improvements are needed, leads to increased productivity. And increased productivity is proven to help companies increase profits and experience growth.

• Continuous Feedback = Continuous L & D

Generation X and Generation Y employees have one thing in common- they value learning and development.  In other words, employees today are more focused on increasing their skill sets. They understand that increased skills make them more valuable and that value is achieved through L & D. Providing continuous appraisals about one’s work and identifying knowledge gaps allows for upskilling. When companies invest in building the skills of their employees, not only to they enjoy the benefits, they create a landscape of trust between employers and employees.

•  Annual Reviews – An Ineffective Approach

Yearly appraisals are not very effective. But don’t just take our word on it. ‘Survey Analytics’ states that 45% of HR leaders do not think annual performance reviews are an accurate appraisal for employee’s work.  A year is a long to wait before correcting mistakes and redirecting employees.  Good deeds are forgotten and only the most recent performance is accounted for. This often impacts employee’s performance, moods and behaviors in many ways.  And has detrimental impacts to a company’s bottom line that may not be immediately realized.

• Successful Goal Attainment

Studies say the best way to achieve long term goals is by breaking them into easier-to-achieve, short-term goals. Forbes mentions that companies that set quarterly performance goals generate 31% greater returns than those that review goals annually. And those that do it monthly get even better results. When companies follow a system of setting short term goals for employees they boost productivity and increase the likelihood of reaching their long term goals.

• Morale & Motivation

Two of the least quantifiable but most critical drivers of superior employee performance are morale and motivation. One way to powerfully build both of these is to provide acknowledgments for work well done. Having a system for continuous feedback allows frequent and more importantly, timely recognition for employees. When these employees feel fulfilled in a company, it ultimately is seen in their quality of work and reduces employee turnover. Adobe, one of the biggest computer software company, has been able to cut voluntary employee turnover by some 30% after introducing a continuous feedback and frequent check-in program.

Some of the biggest companies in the world are moving towards a system of continuous feedback. Are you ready? Introducing Continuous Feedback might seem daunting- because, let’s face it, we have been doing the same thing, the same way, for so long- but it’s time for a disruption.

Need some help with that?

Here, at ‘Cavantics’, we offer intelligent talent management solutions using cutting edge AI based technology.

Our App – LOOP helps you continuously engage with your employee through various features including continuous feedback.  Log on to our website, www.cavantics.com, to find a smarter and more effective way to engage with your employees.

Stay tuned to this space for more insightful blogs every week!

Cheers .

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