Dive into new research that reveals what truly motivates employees and where organizations often go wrong in performance management. Discover the essential role of clear goals and continuous feedback, alongside the transformative potential of generative AI. Explore strategies for supporting underperformers and the significant impact of financial and non-financial rewards. Address crucial gender biases that hinder women's career advancement, and learn how clarity and collaboration can rejuvenate outdated performance systems.
Clarity in performance expectations is essential, as complex metrics can hinder employees' understanding of their performance and accountability.
Effective performance management relies heavily on skilled managers who foster continuous feedback and focus on employee growth rather than just error correction.
Deep dives
The Importance of Clarity and Simplicity in Performance Management
Clarity and simplicity are crucial for driving strong employee performance. Employees need clear expectations to feel a sense of accountability and fairness regarding their evaluations. Complex performance management systems, which often overload employees with numerous metrics, are counterproductive, as they obscure what really matters in performance assessment. Organizations should focus on a few critical factors and clear measures to support employees’ understanding of their performance and progress.
The Role of Managers in Performance Management
Managers play a vital role in performance management, significantly influencing the feedback process and employee development. Continuous learning and feedback should become an integral part of the team's routine rather than an afterthought, allowing employees to learn and improve over time. Skilled managers recognize the need for thoughtful, constructive conversations that support employee growth, rather than merely highlighting mistakes. Upskilling managers in delivering effective feedback is essential to cultivate a culture of development and accountability.
Navigating Compensation and Non-Financial Rewards
While financial compensation is important, it should be combined with non-financial rewards like praise and opportunities for growth to truly motivate employees. A sense of worth and connection to the organization's goals often outweighs mere financial incentives in employee satisfaction. Companies should focus on maintaining fair compensation practices and offering meaningful recognition to foster a motivated workforce. Understanding the holistic approach to rewards can help organizations attract and retain top talent while addressing gender pay gaps and ensuring equity.
New research reveals what employees find fair, what motivates them to perform, and where many organizations go wrong when it comes to feedback, compensation, and annual ratings and reviews. On this episode of McKinsey Talks Talent, talent experts Bryan Hancock and Brooke Weddle speak with global editorial director Lucia Rahilly about new research on what drives performance: what motivates employees most, what matters less than you think, and the changes organizations need to make to ensure their feedback, ratings, and review processes are on track.