Simply put, the nature of talent management has changed dramatically since its inception. More intricately said, a variety of factors has led to this dramatic shift – a younger generation of employees has become a huge part of the workforce, bringing with it a revised set of attitudes and work preferences.
With this generation, a focus on terms like “organisational justice” and “social responsibility” has emerged, which has led to even more changes, including adding those new ideals into corporate cultures. Our understanding of how to engage with employees has also grown, which has affected the way that employers manage and retain talented employees. Organisations are recognising the need to focus on culture and dramatically improve employee engagement as they face a looming crisis in engagement and retention, and as a result, many companies are replacing traditional performance management with innovative performance solutions.
Companies are also struggling to develop leaders at all levels and they are investing in new and accelerated leadership models. To address these challenges, companies are actively exploring new approaches to learning and development as they confront increasing skills gaps. Overall, organizations are increasing spend on training and development, performance management, and succession planning. in addition, they are reducing spend on recruitment and focusing on refreshing two long-standing concepts, the annual performance review and on boarding.
Is the Annual Performance Review Dead?
You might be surprised to know that many high-profile companies like General Electric,Accenture, Microsoft, Adobe, Gap, and Medtronics have moved away from the traditional annual performance appraisal system. There has been an ongoing dialogue and debate among HR professionals about the usefulness of this model, but the debate is valid.