Companies need to take a more agile approach to the responsibilities of a manager. Managers must use technology increasingly to improve performance and employee engagement. Various software solutions are growing rapidly in the market to help managers modernize performance management for Gen Y employees. Managers have a lot of strategic responsibilities such as employee engagement, creating a positive company culture and performance management. The corporate world has transformed tremendously, and every organization is concerned with increasing employee productivity and performance. Therefore, it also becomes important that companies refresh their performance practices in terms of transforming annual performance reviews. 

Annual performance reviews are not progressive in the sense they do not stimulate higher performance. The rationale behind having a performance management system is to increase employee performance and productivity strategically and holistically. You need to actively engage employees. Therefore, in order to succeed, it is highly advisable that you don’t rely on the conversations between managers and employees that happen only once a year. Gen Y employees are occupying the workforce increasingly and workplace cultures are transforming rapidly. Therefore, managers must hunt for performance management solutions for the new generation, that stimulates frequent real-time communication between managers and employees, enhances employee engagement and boosts performance. 

Since millennial employees are joining the workforce, they need less complex, easy to use experiences when it comes to performance evaluation. A lot of studies establish that employees who receive frequent real-time feedback from their superiors and the organization that breeds trust and employee recognition tend to perform better. Therefore, companies must use a modern performance management system to increase performance. Let us look at some of the elements that are required for an agile performance management system, to suit the needs of the millennial employees and engage them: 

Alignment with company objectives 

When we set targets for our employees, we must ensure that their targets are aligned with company objectives. A lot of millennials complain about how their goals do not make sense to them, considering how they do not fit into the company’s goals. Therefore, performance management for the Gen Y employees must be in tandem with the mission and vision of the company.  

Continuous feedback 

Continuous feedback is important because, it is instant, immediate and easily accessible to employees through a digital platform. Moreover, when it comes to leadership practices, continuous feedback creates a reciprocal dialogue among employees. Continuous feedback helps employees understand where they stand in terms of their performance which leads to better progress and development. 

Goal management 

Employee goal management is very integral to performance management. It gives employees a sense of direction. Effective goal management practices help employees track their progress and analyze if they have fulfilled them appropriately. Since we spoke about alignment of goals in the first point, employee goals must be aligned with the company objectives. Companies can even use the SMART criterion to create employee goals. 

Rewards and recognition 

Rewards and recognition programs in an organization help boost employee engagement and turn your workplace culture into a more fun and exciting one. With a rewards and recognition platform, you could always bring in peer recognition, instant awards and various other exciting reward programs into your organization for millennial employees. Since employees are receiving continuous appreciation and inspiration, employees tend to cherish the workplace culture. 

Training and development 

If you want to implement a better performance management system, then one of the ways to do this is by bringing in learning opportunities for your employees. This is also a way through which you can support all your employees. Coaching and training are crucial to this learning opportunity that you are trying to provide your employees. Such initiatives help employees to learn new skills, improve their weaknesses and gain confidence. 

The fundamental and most important factor… 

Millennials shape the future of work in so many ways. Even the ways in which information is disseminated and technology is being leveraged. Millennials find meaning in their work only when they are being recognized for the work that they do. This can be accomplished when you set your performance expectations clearly and hold them accountable for their goals and give them a sense of purpose. Therefore, ensure that you incorporate all these elements in your performance management system through continuous feedback and coaching.