From Annual Reviews to Continuous Growth with Gecko

Performance management has long been a pain point for companies and employees alike. The process often feels like a dreaded ritual: a once-a-year event that leaves employees uninspired, with little actionable feedback. But what if we could completely transform this process into a continuous dialogue that empowers employees and improves company performance?

In a recent presentation at AdriatiCON 2024, Iva Krajnc, Gecko HRM Product Manager at Agilcon introduced a next-generation approach to performance management, highlighting the shortcomings of traditional systems and offering a compelling vision for the future.

Also, she offered a solution to introduce a flexible HRM system that adjusts to your current performance management practices and pushes your organisation towards a better organisational culture.

The Problem with Traditional Performance Reviews

For years, organisations have relied on annual performance reviews to assess employee performance. However, research consistently shows that these yearly performance reviews often fail to meet their objectives. Many employees report that performance management practices are not only uninspiring but can also feel unfair and unclear.

The traditional model fails to foster growth or improve performance, with over half of employees stating that performance management has little to no positive impact on their outcomes or company success.

Moreover, we live in a time where talent is scarce. Unemployment rates are at historic lows, and companies are struggling to fill key roles. This underscores the importance of internal talent development, yet most companies still rely on outdated performance management systems that don’t align with today’s business needs.

From Annual to Continuous Feedback

The new model that’s emerging focuses on turning performance management into a series of ongoing conversations.

This shift moves away from a rigid, annual review system and embraces a more dynamic approach where feedback, goal setting, and development discussions happen regularly—often with a mix of informal check-ins and more formal performance talks.

The goal is not just to have a performance conversation once or twice a year but to create a system of "talks" that happen continuously throughout the year. These conversations will not only address performance but also development, engagement, and overall well-being.

One of the key principles of this new system is the emphasis on growth, engagement, and clear goals. These talks are designed to be motivational, inspiring, and empowering rather than a simple evaluation of past performance.

Leveraging Gecko HRM for Modern Performance Management

Take Sarah, a 20-year-old employee, and her manager Angelina, for example. When Sarah logs into the Gecko HRM, she’s greeted with a performance dashboard that gives her a snapshot of her goals, progress, and development. This dashboard is updated regularly, so both Sarah and Angelina can track her achievements, review her goals, and have productive discussions about her progress.

In the past, goal setting often involved a once-a-year meeting, where goals were set but then forgotten about until the next review. The new model breaks down that barrier by focusing on regular goal setting and updates throughout the year. Sarah and Angelina will work together to set clear, measurable goals—goals that can be tracked using performance dashboards. With metrics available, it’s easier for both the employee and manager to track progress, adjust goals as needed, and stay on course.

Sarah and Angelina can also schedule regular 1:1 talks via the dashboard, making it easy to address any concerns, discuss workloads, and adjust goals as necessary. These conversations are based on real-time data, which includes performance metrics, feedback from previous talks, and engagement scores.

Once or twice a year, Sarah and Angelina will still have a more formal performance talk, but this is less about ratings and evaluations and more about reflection. They’ll look at Sarah’s growth over the year, discuss what she’s proud of, and set new goals. This performance talk is guided by a template that encourages both self-reflection and manager feedback, asking questions like:

• What projects are you most proud of?
• What do you enjoy most about your work?
• How satisfied are you with your role?

Gecko HRM solution allows you to introduce just one, or all of the mentioned practices, and helps your organisation introduce new mechanisms as it matures and grows.

This reflective approach ensures that both parties focus on continuous improvement and future growth, not just past shortcomings.

Making the Change Stick: Tackling the Organisational Change

Despite the advantages of this new system, a major challenge remains: getting people to adopt it. Change is difficult, especially in organisations with ingrained habits. Presentation highlighted that many digital transformation efforts in HR technology fail due to a lack of employee adoption.

To combat this, Gecko HRM focuses on making the new system as intuitive as possible. For example, smart nudges remind managers and employees to keep up with their performance conversations, making the process feel natural and embedded into daily work routines.

Additionally, reducing barriers to entry is crucial. New features allow employees to start small, using just a few features of the platform, before moving on to more complex ones. This makes the process feel less overwhelming.

Building a Culture of Continuous Growth

Perhaps the most important takeaway is that performance management is not just about a tool but about building a new culture. It’s about creating an environment where feedback and development are part of the everyday work experience.

As Iva Krajnc noted, small companies often don’t need formal performance management systems—they engage in ongoing feedback and support naturally, without the structure.

In larger companies, though, systems like Gecko HRM can help ensure that every employee receives the attention and support they need. Managers, regardless of their natural inclination, can rely on the system to keep them on track and ensure that no one falls through the cracks.

Conclusion

As organisations face talent shortages and strive to retain top performers, the traditional approach to performance management simply isn’t enough.

The future lies in continuous, data-driven conversations that focus on growth, engagement, and clear goal setting. By empowering employees and managers with the tools they need, we can transform performance management from a dreaded annual event into a thriving part of a company’s culture.

If you want to bring this vision to life in your organisation, it’s time to rethink your performance management processes and embrace a more dynamic, employee-focused approach.