January 13, 2025 5 min read

8 Ways to Improve Your Performance Management Process

Jelena Rašula

Jelena Rašula, Product Marketing Manager

HR Strategy Performance Management

performance-management-process

Performance management has long been a pillar of effective human resource management. Yet, as workplaces evolve and employee expectations shift, traditional approaches to the performance management process no longer suffice. 

We had a good discussion at Gecko’s Headquarters, led by Sabina Lokar, editor of the Slovenian HR&M Magazine. Four HR leaders shared their insights on how to handle performance issues in their organisations. We listened to Edisa Avdić Čiček, HR director for EU at Iskraemeco, Urška Kajtner, head of operations at MESI, Mag. Katarina Primožič Ramoveš, People & Culture Director at NIL, and Marko Perme, CEO at Agilcon

HR strategy

The live discussion featured prominent HR leaders who provided valuable insights into how organisations can modernise the performance management process to create meaningful and impactful results.

What Is Wrong With Your Annual Reviews?

Many companies still only use annual reviews and goals to check their success. This can lead to several problems:

  • Lack of Real-Time Feedback: Annual reviews can separate feedback from everyday work, missing chances to improve quickly.
  • Employee Disengagement: When feedback is rare, employees may feel undervalued, leading to lower motivation and productivity.
  • Inflexibility: Yearly goals may not change when the business changes. This can make it difficult for individual performance to match company goals.
  • Limited Development Opportunities: Without regular check-ins, employees may overlook important chances to grow.
  • Increased Anxiety: The stress from one annual review can be a lot for employees, as they prefer continuous feedback.
  • Ineffective Goal Alignment: Goals set once a year might not match current priorities, causing a mismatch with company objectives.

To improve the performance management process, companies should offer regular feedback and have more frequent talks about employee performance. This approach can boost engagement and help achieve goals more effectively.

Mag. Katarina Primožič Ramoveš, Director of People and Culture at NIL, addressed this issue and challenged the conventional reliance on annual reviews:

Performance management is a year-round cycle. To be effective, it must include continuous feedback, goal-setting, and alignment with organisational strategies.

While historically useful, annual reviews can feel disconnected from the real-time challenges faced by employees and leaders alike. Breaking the process into smaller, more frequent conversations ensures relevance, drives engagement, and supports individual and organisational growth.

Consider Using Goals as a Strategic Lever

Edisa Avdić Čiček, HR Director at Iskraemeco, highlighted the importance of aligning individual performance with company objectives. She asked an interesting question: What does it mean when employees do very well, but the organisation is not moving forward? Her answer was clear:

The system must cascade goals effectively and connect personal contributions with broader strategies. Feedback should be an ongoing dialogue and not a once-a-year event.

When feedback becomes a continuous process, it evolves into a powerful strategic tool. Employees gain clarity on their contributions, while organisations can ensure their workforce is aligned with overarching goals.

Do Your Leaders Have the Needed Skills?

Leadership plays a crucial role in performance management, and often, the challenges begin at the top. Urška Kajtner, Head of Operations at MESI, spoke candidly about her organisation’s growing pains:

Many leaders grow into their roles without formal training. They need structured development opportunities to thrive as people managers.

MESI tackled this issue by starting leadership academies. These academies help managers learn important skills, like giving useful feedback and building trust with their teams. This investment in leadership development not only improved the performance management process but also cultivated a more resilient organisational culture.

Performance management

How Generational Shifts Affect Feedback Timelines

A particularly compelling part of the discussion focused on generational shifts in the workplace. Urška Kajtner noticed that younger generations, such as Gen Z and the soon-to-arrive Alpha generation, have different expectations compared to older norms. These employees value:

  • Immediate feedback over annual reviews.
  • Transparency in career development and organisational goals.
  • Digital-first systems that align with their tech-savvy nature.

This generational shift presents both a challenge and an opportunity for HR leaders.

Rethink the Complete Performance Review Process

Marko Perme, Director at Agilcon, shared how his team broke the traditional review into multiple focused conversations. Each session addresses a specific aspect of performance, such as feedback on competencies or career planning.

Based on his insights, the panel agreed and explored innovative practices to make performance reviews more effective and efficient. They advocated for:

  • Frequent Check-ins: Quarterly or monthly conversations that replace or supplement traditional annual reviews.
  • 360-Degree Feedback: Gathering perspectives from peers, team members, and leaders to reduce bias.
  • Clear Career Pathways: Providing employees with transparency about their growth opportunities within the organisation.
  • Streamlined Processes: Digital tools, like Gecko HRM, to reduce administrative burdens and enhance employee engagement.

Mag. Katarina Primožič Ramoveš summed it up perfectly:

HR is responsible for creating systems that guarantee transparency, fairness, and alignment throughout the entire organisation.

HR departments need to lead the way in creating and applying performance management systems that address the evolving needs of the workforce. From training leaders to fostering a culture of feedback, HR is at the heart of this transformation.

HR deparments

SUMMARY

This panel underscored the evolving nature of performance management. Leaders must embrace a shift towards continuous improvement, transparent communication, and systems that empower both employees and organisations. As generational expectations change and technology advances, the companies that adapt will not only thrive but also inspire loyalty and innovation within their teams.

To sum up, here are the key takeaways:

  1. Transition From Annual to Continuous Reviews: Annual reviews alone are often insufficient and can feel ineffective or time-consuming. A continuous cycle of performance discussions throughout the year is more impactful.
  2. Use Performance Management as a Strategic Tool: It should align with organisational goals and actively support employee development. Transparency and fairness in the process are crucial to building trust and motivation.
  3. Grow Leadership Competencies: Many organisations face gaps in leadership skills, particularly among newer or less experienced leaders. Investment in leadership development programmes, such as training and mentoring, is essential.
  4. Understand the Importance of Feedback Culture: Feedback must be timely, constructive, and supportive of growth. Leaders often struggle with giving and receiving feedback effectively, highlighting the need for continuous training.
  5. Balance Personal and Organisational Goals: Employees should be encouraged to take charge of their career growth. However, leaders and organisations must offer clear paths for their success.
  6. Adapt to Generational Shifts: The expectations and working styles of newer generations, like Gen Z and Alpha, differ significantly from traditional norms. Organisations must adapt performance management systems to be more dynamic, real-time, and responsive to these shifts.
  7. Digitalise Performance Reviews: Digitalisation helps streamline your performance management process, reduces administrative burdens, and enhances employee engagement through real-time feedback and transparent communication. This modern approach aligns with the expectations of tech-savvy employees, fostering a more dynamic and responsive work environment.
  8. Be the Change: HR plays a pivotal role in designing and implementing effective systems, training leaders, and ensuring alignment between organisational and individual goals.

By adopting these lessons, businesses can transform performance management from a burdensome task into a strategic advantage.

About the author

Jelena Rašula

Jelena Rašula, Product Marketing Manager

Jelena Rašula is the Product Marketing Manager at Gecko HRM, where she combines her passion for innovative technology with a deep understanding of the HR industry. With a keen interest in reshaping how businesses approach workforce management, Jelena leads impactful marketing initiatives that highlight the transformative power of HR tech.

Jelena Rašula is the Product Marketing Manager at Gecko HRM, where she combines her passion for innovative technology with a deep understanding of the HR industry. With a keen interest in reshaping how businesses approach workforce management, Jelena leads impactful marketing initiatives that highlight the transformative power of HR tech.

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