HR SPECIAL....ENGAGEMENT REVIEWS THE NEW FAD?

ENGAGEMENT REVIEWS THE NEW FAD?

A recent research reveals that engagement reviews will soon replace the quintessential performance-based appraisals.

    As per a recent research by HR Anexi, the concept of performance management is fading and engagement reviews are gaining momentum. An individual’s approach towards work speaks volumes about his/her contribution to the organisation and the best way to assess an employee’s productivity is through an ‘engagement review’, say experts.The survey revealed that engaged employees are not only committed, but also passionate - they have a line-of-sight on their own future and the organisation’s mission and goals.
    So, is there a need for performance management to be replaced with engagement reviews? “I would not say replace, as we do need to still manage ‘performance’. In our global engagement survey presented in 2011, we found that 37 per cent of India’s working population is fully engaged.This is the highest in the world. However, the findings showed that it is not the case for younger employees v/s the older generation that is ‘loyal’. Gen Y and Millennials are much more likely to ask ‘what about me?’ and expect an answer.This is a worldwide phenomenon as these people are globally connected,”informs Ashish Arora, founder and managing director, HR Anexi.
    According to Yuvaraj Srivastava, VP-HR, PepsiCo India,“It is unlikely that performance management can be replaced; rather what can change are the dimensions of performance management and the matrix associated with it.”Similarly, Gokul Santhanam, senior VP – HR, MphasiS Limited perceives that both have to co-exist.“Performance management is an ongoing process that focuses on target-setting, periodical feedback on progress and working on developmental needs. Engagement reviews help us assess the individual’s attachment to the organisation and work on factors that can be improved to enhance productivity,”he states.
    But experts insist that there are quite a few ingredients about performance management that are soon going to be passé.“There is a strong philosophy of ‘co-ownership’ of KRAs or performance indicators between the manager and reportee. However, there are organisations wherein this element of co-ownership is questionable; if something has to be passé, it will be the tendency of thrusting the KPIs (Key Performance Indicators) unilaterally,”Srivastava explains.
    According to Santhanam, normalisation or bell curve will be replaced with absolute performance rating. The focus is already moving from effort-based reviews to result-based
    ones.“Rather than trying to reengineer the performance appraisal, organisations should encourage career coaching conversations, on-boarding discussions, etc,” he adds.
    So, will there be a time when organisations would actually replace performance management with engagement review? “It is not a question of replacing one with the other; it is an issue of strengthening existing performance management processes by having a strong subset or component of the engagement matrix.Engagement reviews shall bring in an additional dimension of relevant performance indices, which can be a useful process of letting employees understand their opportunity areas and work towards developing them,”asserts Srivastava.
    Hence, even though engagement reviews are yet to replace performance management, the future will see more and more adoption of this practice to keep employees more productive and motivated.
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