Recent changes in the work environment have placed L&D on a collision course with performance management.
First, traditional performance reviews are failing. Managers spend more than 200 hours per year on performance review activities with the average company spending around $47 million a year on related activities and technologies. Despite this investment, 95% of managers are dissatisfied with the way their companies conduct reviews and nearly 90 per cent of HR leaders say the process doesn’t yield accurate information.
Secondly, employee engagement is declining sharply across almost every workforce segment with future career opportunity emerging as the top driver of employee attrition. Whilst only 30% of employees are satisfied with future career opportunities at their organisations, 6 out of 10 heads of HR are predicting an internal skills shortage in the next three to five years.
Unfortunately, only 26% of heads of L&D agree that learning experiences align with employees’ career goals and around 11% of employees’ time at work is wasted on learning activities that are redundant or misaligned with future capability requirements.
Facilitator’s Point of View
Our approaches to both learning and performance management are failing because they are disengaging to employees and not meeting current and future capability requirements. In a world of constant change and disruption, we cannot talk about performance if we are not also talking about learning. As L&D practitioners, we have a rare window of opportunity to place learning goals at the core of a reimagined approach to performance management. By doing so, we can prepare our organisations for the future and help our employees thrive in their careers.
LearningCafe Point of View
LearningCafe considers the boundaries between learning, performance and knowledge management to be artificial. Learning should exist to support performance.
- Should learning goals be part of the performance conversation?
- What role should L&D play in performance management?
- How do we get better at delivering learning that meets future capability requirements?
- What role (if any) should L&D have in helping employees achieve their career goals?
- L&D is facing an immediate threat to its relevance because it’s not keeping pace with future capability requirements.
- In a world of constant disruption, we cannot have a conversation about performance without talking about learning.If we do not know where the performance gaps are, how can we connect employees to the learning experiences that will have them bridge those gaps?
- Supporting Performance with Learning – LearningCafe webinar recording https://vimeo.com/125421121
- Read the April 2015 Harvard Business Review issue on Reinventing Performance Rating
- Companion Page – Employee Performance Management – Broken but can we Fix it?
Mathias Otte, Head of Learning Services at Bupa ANZ