Attracting and retaining talent is one of the crucial aspects of organisational success and having a continuous and contextual performance management system in place can help HR leaders to achieve the company goals more effectively.

People Matters spoke to three HR leaders to understand the challenges faced by them and how they are looking at performance management and what their top three priorities are while managing performance management for the distributed workforce. For details, watch the video.

Must be a catalyst to achieve goals

For Upasana Raina, Director - Human Resources & Marketing at Gi Group Holding, performance management should act as a catalyst for achieving individual team and organisational goals.

“Performance management must be perceived as more than just an evaluation mechanism; rather, it should catalyze achieving individual, team, and organisational objectives, fostering collaboration, and promoting continuous improvement. Employees should view it as an empowering resource enabling them to manage their careers and performance, thereby advancing within the organisation,” says Upasana.

Crucial for organisational success

According to VijayaKumar Dilli, VP of Talent and Culture, Bounteous x Accolite, the rise of the hybrid work culture has complicated an effective management process. For him, establishing a fair and transparent system and aligning individuals to organisational goals are major challenges. He suggests training and creating awareness among teams to have periodic performance reviews and meaningful coordination to uncover opportunities. It's important to have both informal and formal feedback mechanisms to discuss things and areas of improvement.

Transparency must be ensured

Talking about the challenges related to performance management, Ajay Gupta, Head of HR, Wonder Home Finance Ltd, says that the lack of alignment with the organisation's vision, mission, and values is one of the major challenges. “Another significant hurdle is the insufficient communication between management and employees regarding the benefits of the PMS. Additionally, issues such as transparency within the system and a lack of necessary skills to utilise the system effectively pose significant challenges during implementation.”.