Bridging The Performance Management Gap With Career Pathing
Technology is driving relentless change that is impacting talent management strategies. Ongoing communication and feedback with employees is an integral part of this change and essential to retain talent and boost engagement.
But too many businesses continue with the traditional approach to performance management which holds your talent back:
- Performance reviews are an annual event which in most cases don’t lead to improvements in employee performance. They focus on historical events, rather than current or future potential. While employees are held accountable for their past behavior, performance reviews lack focus on how employees can improve their current performance or support their future development.
- A one-off review forces employers to attempt to cover too many issues in one meeting, leaving your employees without a clear understanding of where they fit within your organization or any sense of how to achieve their career goals.
This has to change at a more rapid pace.
Can career pathing facilitate that change?
By 2020, it’s anticipated that millennials will comprise 35% of the global workforce, while upcoming ‘Generation Z’ will make up around a quarter. With this workplace dominance comes a different set of expectations and powerful impact on workforce culture, expectations around technology and the way in which HR engages with talent.
Research suggests that millennials are looking for the following in their career:
- Ongoing opportunities with their current employer.
- A clear career path, with ongoing check-ins and communication.
- Recognition for their achievements and real-time feedback.
Only 39% of millennials believe their employer meets those expectations.
Career pathing bridges the gap
The last few years have seen a gradual shift towards continuous performance management, with regular reviews and ongoing check-ins to review employee progress against agreed goals, yet this can still be employer driven. Bridging the gap between the employer driven performance reviews and the demands of millennials and Generation Z is met by career pathing.
Unlike the performance reviews of the past, career pathing makes it clear to your employees how their career can develop within your organization, what additional skills they may need and anticipate how long it will take to progress from their current role.
When combined with an effective continuous performance management strategy, career pathing enables your organization to create a process where employees are engaged and motivated to work towards their career goals.
The benefits of career pathing include:
Improved ability to retain your talent : Employee retention is one of the most significant challenges facing employers in today’s competitive jobs market. A robust talent management program can change that and it begins with career pathing. Your employees feel more inspired and engaged with your organization when they are in control of their own career development.
Better engagement and performance : With an effective career path in place, which they have designed themselves in alignment with your company goals and their role within your organization, employees are more motivated to perform.
Career pathing is for everyone : An agile approach towards development of your existing talent benefits everyone within your organization, not just the C Suite or your top performers. It provides every employee with the opportunity to fulfill their potential.
Improved employer brand : An organization which empowers its employees to grow and looks to its internal talent pool will naturally attract more qualified candidates and develop a more effective talent acquisition strategy if external hiring is needed.
According to Deloitte, 91% of organizations that adopt continuous performance management state they now have better data to drive people decisions. While career pathing supported by dedicated technology is not intended to replace the performance review, it is an integral part of continuous performance management and essential to achieve that goal.
Why It’s Easier to Succeed With Succession Planning When You Offer Career Pathing
When one of your key employees is about to leave, your immediate instinct might be to find a quick replacement. After all, it’s a logical first step, seeing as work can pile up and bog down other employees when certain roles aren’t filled in a timely manner. But through all of the talent scouting, interviews, and other processes to help decide who will meet this vacancy, the truth of the matter is that you’re still likely to come up short.
Career Pathing vs Succession Planning: Understanding The Difference
Career pathing and succession planning are common terminologies within talent management but the difference in their application and the separate benefits of each can be misunderstood and overlooked. In the majority of cases, employers prioritize succession planning, assuming that career pathing will somehow ‘fit’ naturally into it.
But high performing organizations require both.
Don’t Let Your Team Engagement Die with the Performance Review
When it comes to performance, candor carries the day, says Jack Welch, famed ex-CEO of GE. If you perform well on your review, you get a raise. If you perform poorly, you get yanked. This frank approach was the inspiration for GE’s annual review system, often called “rank and yank” for being so systematic, and oftentimes, brutal.