For decades, employee experience (EX) was a fringe concern, associated with casual Fridays and the occasional retreats. Today, it's a boardroom priority. The pandemic served as a catalyst, forcing companies to confront the realities of remote work and a shifting talent landscape. The "Great Resignation" underscored the urgent need for a more holistic approach to EX, one that goes beyond fleeting perks and focuses on the entire employee journey.

How can robust performance reviews become your solution? People Matters and Keka’s latest ebook Supercharge Employee Experience Through Performance Management is your guide to revamping performance management to improve employee experience.

Beyond beanbags and casual Fridays: The new EX imperative

The modern employee craves not just competitive compensation and benefits, but also a sense of purpose, growth opportunities, and a healthy work-life balance. Forward-thinking companies are building EX strategies that nurture these desires.  This includes:

• Career Development: Upskilling and reskilling programs ensure employees remain relevant in a rapidly changing world.
• Performance Management: Regular, goal-oriented feedback creates a pathway for career growth and fosters a sense of accomplishment.
• Employee Well-being: Investing in mental and physical health initiatives demonstrates genuine care for employee well-being and boosts engagement.

The Performance Management-EX nexus

Effective performance management is the linchpin of a strong EX strategy.  Regular, two-way feedback offers valuable insights into employee aspirations and roadblocks. When linked to skill development and career advancement opportunities, performance management becomes a driver of engagement and satisfaction.

The potential of new-age performance reviews

Traditional performance management relies on retrospective evaluations like annual or semi-annual reviews and structured feedback cycles. This approach falls short in providing real-time and continuous support to employees, both of which are crucial for enhancing their experience and performance.

Issues with traditional performance management systems include a one-size-fits-all approach, lack of immediate feedback, inadequacy for large-scale implementation, susceptibility to biases, and cumbersome manual processes. These limitations adversely affect employee experience and, while familiar to companies yet to adopt more modern, tech-driven PMSs, can hinder employee engagement and productivity.

The future of EX is data-driven. Companies will increasingly leverage technology to personalise the employee experience, identify areas for improvement, and measure the return on investment in EX initiatives.  Analytics will help tailor onboarding experiences, identify high-potential employees, and create targeted training programs. And new -age performance management processes will be key in enabling this journey.

Effective performance management strategies, such as setting Objectives and Key Results (OKRs), establishing SMART goals, conducting regular assessments, and fostering better manager-employee relations, are instrumental in elevating the overall employee experience.

By focusing on continuous improvement, personalised development, and regular feedback, organisations can create a more engaging and fulfilling work environment.

The Bottom Line: invest in people by creating future-ready processes

A positive EX yields tangible benefits for companies. And perhaps one of the surest ways of improving EX is through reimagined performance review processes that use latest analytics and digital technologies to help build Studies show a direct correlation between strong EX and increased employee retention, productivity, and innovation.  Investing in people isn't just the right thing to do; it's sound business strategy.  In a competitive market, companies that prioritise and excel at creating a positive employee experience will be the ones to attract and retain top talent, driving long-term success in our ever-evolving business environment.

Download our latest ebook to take a deep-dive into analysing how effective your current performance review process is enhancing experience and unpack strategies to build for the future.