Employee performance management has long been regarded as a key player in the territory of talent development and organizational excellence. However, in our modern world, one characterized by relentless digital transformation, the way we approach employee performance management is undergoing a profound shift. The infusion of technology into this pivotal aspect of human resources has ushered in a new era filled with opportunities and challenges alike. This article aims to examine the future of employee performance management, underscoring the imperative to strike a harmonious balance between technology-driven solutions and a resolute human-centered approach. Over the course of this discussion, we will explore three central themes that encapsulate the evolution of performance management in our digital age.
Technology’s vital role in employee performance management
In the current era defined by digitization, technology is a crucial partner to optimize the performance management processes. It is obvious that the arrival of artificial intelligence (AI) has changed the business environment. AI tools offer immediate performance tracking, data analysis, and the ability to provide real-time insights—which were previously not visible. For example, machine learning (ML) procedures can discover complex trends within employee performance data, which supports management to take proactive actions that are designed to improve productivity and enhance job satisfaction. Moreover, cloud-based platforms have made performance evaluations more accessible, facilitating the maintenance of consistent and efficient performance management practices, particularly for geographically spread teams and organizations.
Technology’s role in performance management extends beyond the scope of data sifting. It also encompasses the streamlining of administrative tasks, which fosters transparent communication channels, and the accessibility of performance data. Ultimately, this results in a shift towards more agile and approachable performance management processes. Keeping in mind that technology assists in automating routine tasks, HR professionals will be able to allocate more time and resources towards the all-important human elements of performance management, such as coaching and mentorship. In essence, technology is the engine that drives employee performance management into the digital age, allowing organizations to harness the full spectrum of new opportunities that come with it.
Maintaining a human-centered approach
While technology assumes a pivotal role, it is paramount to recognize that it should serve as an enabler and not a replacement of the human element in employee performance management. Employee engagement and motivation remain deeply rooted in personal interactions and the provision of constructive feedback. HR professionals must thus prioritize these core aspects, leveraging technology to facilitate, rather than displace, these crucial facets of the employee performance management process.
In a world increasingly characterized by virtual communication and remote work, the importance of face-to-face interactions cannot be overstated. Employees derive immense value from the opportunity to engage with their managers and colleagues in real-time. Constructive feedback, delivered through personalized conversations, holds the potential to drive substantial performance improvements. A technological revolution should not signify the obsolescence of these personal connections but should instead facilitate their continuation in unique ways.
Mentorship and coaching, too, remain essentially human activities. While AI can provide valuable insights, there is no substitute for the guidance and wisdom that experienced professionals can convey to their peers. Employee performance management should encompass these essential human elements, leveraging technology to create an environment where mentorship and coaching thrive alongside data-driven insights.
Transparency and fairness through data
When leveraging technology, organizations can establish objective performance benchmarks and metrics that reduce the influence of biases in evaluations. These data-driven insights serve as a foundation upon which fair and consistent decisions can be made regarding promotions, compensation, and developmental opportunities.
Moreover, the utilization of technology allows organizations to share performance data with employees, which fosters a culture of transparency, accountability, and self-improvement. Once employees understand the criteria by which they are evaluated and witness the fairness with which these evaluations are conducted, it creates a more productive workplace.
However, organizations should exercise caution when using data, especially where ethical considerations are involved, such as protecting employee privacy and ensuring the responsible handling of sensitive data. Moreover, they must also avoid the pitfalls of algorithmic bias, making it a priority to continue assessing and fine tuning their algorithms to mitigate unfairness.
The right equilibrium
The synergy between technology and human expertise will not only drive individual and organizational performance, but also ensure fairness, transparency, and employee satisfaction. By navigating this growing model, organizations that strike the right equilibrium between technology and humanity will not just adapt but thrive in the digital age. The future of employee performance management should be an appropriate balance of technology and humanity—a path that leads to greater prosperity and progress for individuals and organizations alike.
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This article is written by Chadia Abou Ghazale, a seasoned banking professional with 24 years of experience and who excels in budgeting, sales performance management, data analysis, and resource planning. Beyond banking, she is a dedicated reader of self-development topics and passionate networker. Chadia believes that life’s purpose is the pursuit of knowledge. Her extensive expertise and unwavering enthusiasm are a dynamic combination, driving success in her career and enriching her life’s adventurous journey.
Accelerating a digital economy is no longer just an option but a must. The United Nations reported that digital technologies have reached 50% of the developing world’s population and helped transform societies. Meanwhile, the paper “The Role of the Digital Economy in Rebuilding and Maintaining Social Governance Mechanisms” suggests that digitization improves society at all levels, from the automation of businesses to new opportunities to human behavior and social relationships, especially interactions between governments and citizens.
Malaysia is not an exception. The COVID-19 pandemic forced traditional brick-and-mortar businesses to pivot online, and millions of Malaysians followed. This is evident in their shopping, entertainment, and education needs.
The digital economy has been identified as a key economic growth area (KEGA) in realizing the Shared Prosperity Vision 2030, a blueprint released in 2020 by the government. It reflects the aspiration of making Malaysia a country that develops sustainably while achieving equitable economic distribution and inclusive growth. According to the Shared Prosperity Vision 2030, Malaysia should have clear policies and raise awareness on enabling citizens to adapt to the future economy instead of leaving them as mere consumers. Hence, MyDIGITAL was launched.
MyDIGITAL is a national initiative that epitomizes the government’s aspirations to successfully transform Malaysia into a digitally-driven, high-income nation and a regional leader in the digital economy. MyDIGITAL’s three goals are to inspire decision-makers to become creators, users, and adopters of innovative business models; use human capital to flourish in the digital economy; and cultivate a consolidated ecosystem that empowers society to embrace the digital economy. To meet these objectives, six strategic thrusts have been identified:
Drive digital transformation in the public sector.This can be accomplished by leveraging digital technologies, data, and digital intelligence, improving public servants’ digital skill sets, and enhancing the quality of online services. By the end of the year, the goal is for all ministries and agencies to provide cashless payment options and 80 percent cloud storage across the government. In the short term, transforming the Administrative Modernization and Management Planning Unit (MAMPU) will fuel digitalization and adapt to emerging digital technologies.
Boost economic competitivenessby accelerating digital adoption, empowering digital management, and shaping emerging business models through digitalization. Businesses that embrace technology and build on the digital economy will generate value and thrive as the economy transforms. The goal is to have Malaysian industries be powered by innovative ideas and models. With economic growth led by local entrepreneurs, the focus will be on productivity and improving livelihoods. This will bring in new industry players, resulting in a more vibrant and innovative economy.
Establish enabling digital infrastructure to help individuals participate in the digital economy. Through a conducive digital environment provided by seamless and extensive digital connectivity, the government and businesses will be able to operate with ease and continuously innovate. Malaysia has made significant progress in improving the state and coverage of such key infrastructure. Broadband, data centers, and submarine cable landing stations are among the digital infrastructures targeted by this thrust. These infrastructures enable data generation, flow, exchange, consumption, and storage.
Build agile and competent digital talentto ensure that digitalization is successfully embedded across talent development, various levels of education, and the upskilling and reskilling of the existing workforce. The key challenge for Malaysians as job requirements change and new jobs surface is to acquire the necessary skills to remain relevant. To thrive in the evolving digital economy, current and future workforces should be well-equipped with digital skills.
Create an inclusive digital society to bridge the digital divide and ensure that everyone benefits from the digital economy. There are numerous government initiatives and programs in place to improve the well-being of society. However, a digital divide persists across income, strata, age, gender, and skill sets. To create a digitally responsible society, ethical behavior in the use of digital technology will be prioritized. This will be expressed through the improvement of safety and ethics in digital activities and transactions and through cybersecurity. For instance, companies can leverage existing initiatives, such as the Information Security Governance, Risk & Compliance Health Check Assessment.
Establish a trusted, secure, and ethical digital environment that allows businesses and society to fully reap the benefits of digital services without jeopardizing safety, data security, privacy, dependability, or ethical standards. The development of a holistic ecosystem is required, and this may involve a regulatory framework and cyber security capabilities to prevent threats or breaches that can disrupt the digital economy.
Twenty-two strategies, 48 national initiatives, and 28 sectoral initiatives support these strategic thrusts. Phase 1 began in 2021 and will last until 2022, when the foundation for digital adoption will be strengthened. In Phase 2 (2023-2025), inclusive digital transformation will be prioritized, and Phase 3 (from 2026 to 2030) will position Malaysia as a regional leader in digital content and cyber security.
MyDIGITAL’s mission is to ensure that all Malaysians benefit from the opportunities of the digital revolution. To realize this, active participation from strong partnerships and between all stakeholders are necessary. With MyDIGITAL’s implementation, the rakyat’s standard of living and well-being are expected to improve, businesses will be able to optimize resources and expand their operations and market, and the government will be able to provide more efficient and effective services.
