To motivate and engage our employees, we need to commit to change and progress. We need to appreciate that times change, our understanding of motivation advances, and we encounter new performance management tools. Knowing this, we should periodically take a step back, catch up with promising performance management trends, and question how we can best implement these trends to improve company culture and our levels of employee engagement.

Below, we’ll explore four performance management trends for 2020. 

1. Managers Will Get More Time to Act as Coaches

By now, we understand the significant role managers play when it comes to employee engagement and productivity. This is something we’ve been aware of for a long time. In 2015, Gallup revealed that managers account for a 70% variance in employee engagement levels. When managers have the time to dedicate to coaching and people management, they can nurture trusting relationships. This allows for the exchange of honest feedback and helps employees feel more secure in their roles, their abilities, and their potential. On the other hand, when relationships turn sour, retention rates go south. After all, people generally leave managers, not companies.

The problem is, managers are strained. They have to deal with their workload — and find time to motivate and engage with their teams. In 2020, we predict the companies that will flourish are those who allow managers to invest more time in people management. Companies that encourage the development of better relationships and more feedback will reap the rewards. This shift will necessitate training (so managers know how to coach their employees effectively and deliver useful feedback) and adjustments to performance management systems. For example, abandoning annual appraisals for frequent performance discussions can free up a lot of manager time, allowing them to put it to better use.

2. Organizations Will Begin Looking at Performance Management from an Environmental Perspective

Although certain companies have led the charge in terms of performance management overhauls (and have seen some incredible results), the frustrating reality is, most companies are slow to change. They are reluctant to make significant changes to their performance management systems, preferring instead to stick to what they know. Our research (which surveyed 300 HR leaders) found over 70% of organizations were still using annual appraisals, despite the fact most thought-leaders agree annual appraisals are dead and ineffective.

The thing is, when your focus in HR is ratings, rankings, and objectives, you spend a great deal of time serving processes rather than your employees. You get so bogged down with numbers and data, you forget the best way to develop performance is to connect with employees.

In 2020, organizations will likely begin to look at performance management from an environmental perspective — creating the right environment for employees to thrive. This means putting employees at the center of your system and asking — at each stage — will this engage and motivate my employees? Will this create a positive working environment conducive to great performance, or is this process a box-ticking exercise that won’t contribute much in the long-term?

3. Employee-Centric Organizations Will Flourish

This point echoes and elaborates on our past point. In 2020, employee-centric companies will gain a real edge. Being employee-centric is about more than just extrinsic incentives and perks. A table tennis table in your staff room might sound great at recruitment, but it won’t keep your employees happy long. Employee-centric companies have a wider understanding of motivation. Managers of such companies know they need to keep employees in mind when making any decision about the company. Importantly, they also encourage employees to share their thoughts about their organization.

Ask employees for feedback during performance discussions. Allow for anonymous feedback or run open forums to get employees talking and communicating. Once you know what they think of your company and what could be improved, you can make significant changes that stand to seriously boost performance and productivity levels.

4. There Will Be a Renewed Focus on Engagement to Boost Productivity

Employee engagement is far from a new concept, and in the past few years, we’ve benefitted from a lot of research in this area. However, with record-low unemployment rates and the war for talent becoming an increasing concern for businesses around the world, it’s clear that the alignment of employee engagement and performance management will become the biggest trend in HR for 2020. Organizations need to attract (and, importantly, retain) the best candidates. We need to do all we can to invest in them, to nurture them, and encourage them. We need to really understand what motivates and rewards employees. It is only by focusing on employee engagement strategies and efforts that companies can hope to retain their top performers and remain competitive for years to come.

About the Author: Stuart Hearn is an HR writer and speaker, as well as Founder and CEO of Clear Review, a performance management software solution that encourages open, frequent communication and feedback.