The evolution of technology has greatly affected many sectors. Technology has made it easier for businesses to be productive, cost- effective, and labor saving. One additional area technology has significantly impacted is Human Resources. The change of HR technology has affected the roles of managers in organizations, as their roles become broader and more strategic. In the article HR Technology is Changing Fast: 5 things you should know, posted by Gal Rimon, Rimon explains how technology is promptly changing the way organizations manages their teams. The performance reviews are no longer based on subjectivity, but a function that is becoming more objective and real-time. Thus, technology in HR affects organizational culture, people’s inner work lives, gamification and how to think about performance. Here are some key HR trends that are listed in the article:
No more performance reviews
Last year, Accenture and Deloitte mentioned they wouldn’t be doing performance reviews anymore. This method, known as one of the best practices in HR, rating employees as they were placed on a standard distribution curve, is now outdated. As it turns out, performance reviews are no longer efficient. Performance reviews simply take too long and cost too much. In addition, performance reviews are once- a year events, and that lose the ability to impact an employee’s performance. Since this process only justifies why promotion or compensation was earned or not, employees are stressed ou by the process. By feeling threatened by the process, employees demonstrate that they aren’t entirely focused on learning or improving.
Instead, Rimon suggests implementing a method that replaces employee evaluation and focuses on developing employees on what they can do better in real time. The main issue of the employee evaluation is the fact that it focused on past performance and goals, and ignored the ability to help employees in real time. Keep this in mind when communicating goals and reviewing employees performances. Employees feel a lot more comfortable when the manager takes the effort to communicate about developments and goals. In return, they will be more receptive to suggestions and feedback about what they can do to be better.
Welcome Objectives and Key Results
Objectives and Key Results are used by many successful companies such as Google, Twitter, and Linkedin. First off, Objectives and Key Results (OKRs) is a modern management method that sets company-wide goals to align everyone’s focus on the same key priorities that truly drive results. Employees should have their personal objectives and key results. This allows employees to view their co-workers’ objectives and key results and how they fit with the corporate objectives. OKRs demonstrate achievement in real – time, and their transparency drives fairness. Setting OKRs properly may take some time and can be quite challenging, however, OKRS are not only beneficial for better goal setting, but to also communicate corporate goals and align them with the work completed by employees.
The use of the Internet
Nowadays, the use of the Internet is more than browsing the web. Many new HR tech applications appear on mobile devices. Some apps allow employees to track their progress, similar to a fitness track for work. This real-time feedback encourages employees to understand their performance, reflect and improve on it. Many companies are now implementing this method into the workforce to develop employees better.
Millennials in the workforce
Millennials are one of the largest generation in the workforce abd are set to be more than half the workforce by 2020. What is the best way to cater to Millennials? Set goals through digital communication in the workplace and provide immediate feedback through mobile apps while including gamification. Feedback is crucial for Millennials, a generation which expects feedback when necessary. With digital feedback replacing face to face conversations, they may feel great with the use of gamified performance management in the workplace. Also, the transparency of OKRs can work extremely well with Millennials. The practice of using game elements to motivate employees is coming of age, with gamification serving as an activity tracker for work, based on OKRs.
Changes within the workforce are never easy. It may take some time for employees to adjust, and implementation may hinder. However, necessary changes are needed in order to stay competitive. The increased use of technology has opened many doors and has changed the playing field for HR Techs. Rimon mentions some excellent key trends, and managers who respond and act on these trends can significantly improve the organization’s overall performance. Read more on Rimon’s article HR Technology is Changing Fast: 5 things you should know.