Accord Healthcare

"Thank you for all your work this year. You are an overall 3. I’d have given you a 4, but HR said you had to be a 3."           

That statement secures motivation for the employee for the next 12 months, while their manager sits back, satisfied with a box well ticked.

Sound familiar?

Performance Management, as a concept, is no longer relevant. The role of a manager in progressing their team through an arbitrary annual process is outdated. The term and process are often misused, deployed ineffectively, or have become so entrenched in a company culture that they extinguish the last embers of an employee’s motivation with that final, arbitrary rating.

What is relevant is the concept of Performance Enablement.

Metrics and continued commercial success are vital for growth and longevity, and as HR professionals, we play a key role in designing and supporting approaches that enable employees to feel valued and recognize their contribution to the company’s success.

How Do We Do This?

The Conversation

Performance conversations should focus on how employees can develop and be supported in achieving their role and career aspirations. Employees drive company goals and targets. The more valued and included they feel, the more likely they are to demonstrate increased loyalty, commitment, and performance, fostering internal talent development.

Our role is to create an environment where employees feel their work, effort, and contributions are valued. The manager’s role is pivotal in this shift. Their primary focus should be the continual improvement of their team through coaching and career conversations.

When I think about the managers I have worked for, the ones I remember are those who invested their time in me—who provided insights, encouraged me to take on challenges, and supported me in pushing my own boundaries. They weren’t just focused on metrics and numbers; they inspired me to achieve more.

The Process

Organisations must pivot to focus on new projects, products, services, market pressures, regulatory changes, and evolving ways of working—all while aligning with increasing employee expectations.

So why continue measuring performance against targets set nearly a year ago?

Instead, consider an approach that provides flexibility to match ongoing business changes. I also support running different processes based on role requirements, as long as each approach is clear for the respective employee group.

There are several methodologies worth exploring, but it’s important to structure any changes around the makeup of your workforce and their roles.

One option is setting goals on a rolling monthly basis, reviewing and updating them as part of regular performance conversations. Some goals will drop off when achieved, others will continue or evolve each month. This builds a portfolio of achievements over the year—each relevant to the business needs at that time.

“Performance conversations should focus on how employees can develop and be supported, not just on ticking a box”

Another option is project-based goals, where delivery of the project is the outcome. Conversations and milestones then become the key rolling metrics throughout the project’s lifespan.

The Reward

Performance and reward are deeply connected. If you remove a traditional rating scale (e.g., 1–5), you must consider how to motivate and recognize different levels of performance.

One approach is offering additional development opportunities. I worked for an organisation that rewarded high performance by pairing employees with an executive mentor for 12 months. Other effective tools include:

● An additional day of annual leave

● Assignments or secondments to organisation-wide projects

The key is establishing reward frameworks that support successful performance enablement. HR must take a holistic approach, considering all aspects of the function when designing a new model. Of course, every framework has an intrinsic cost, so finding the right balance for your organisation is essential.

Key Takeaways

● Leaders must advocate and role model what they expect from employees.

● Have regular, meaningful coaching conversations with employees.

● Set relevant, flexible goals that align with changing business needs.

● Ensure your reward mechanisms are fair, transparent, and motivating.

● Make the process relevant and effective for the audience.

● Small incremental changes make a difference.

● Think beyond monetary value when recognizing employees.

This is a broad and simplified look at reframing performance management, but if your current approach is no longer fit for purpose, it’s worth investing in change. The conversation on whether we even need these processes in the evolving world of business is for another time.