The report also offers prescriptive steps HR professionals can take to ensure their teams are optimally positioned to deliver the desired business outcomes from their performance management programs.
Key findings in the report include:
People managers and HR professionals surveyed both see HR in their organizations as leading forward-thinking human capital management practices and technology investments
HR team makeup is critical: HR teams with C-level leaders reporting to the CEO are the most forward-thinking and best able to affect change in their organizations
Building a "culture of feedback" is a critical link between employees, managers, HR and C-level executives
"Forward-thinking CEOs understand that aligning, developing and continuously motivating their workforce is crucial to achieving and sustaining competitive advantage," said Doug Dennerline, chief executive officer at Betterworks. "They demonstrate this commitment by hiring strong HR leaders who report directly to them and support them in creating an outstanding employee experience for maximum impact."
The study revealed that the most impactful HR organizations have a chief human resources officer (CHRO) who reports directly to the CEO. Betterworks' research found that HR teams with a C-level leader more often deploy the elements that make up an effective performance management program in their organizations, and are:
38% more likely to implement "employee pulse" surveys
24% more likely to agree that a key part of HR's job is to ensure managers are having more of the right conversations with their team members
20% more likely to have performance reviews occur more frequently than annually
18% more likely to be responsible for HR technology
18% more likely to set more frequent goals
The Betterworks State of Continuous Performance Management Survey also found that forward-thinking HR teams are the foundation for building an effective feedback culture, with HR respondents identifying the following as the three of the most crucial elements to building a feedback culture:
93%: Visibility and transparency into a company's top priorities and goals
87%: Total company alignment to top company priorities
85%: Opportunities for employees to solicit and receive continuous, timely feedback from their managers
The survey suggests it is critical that every organization, regardless of size or industry, implements best practices to support continually evolving employee performance. The most effective HR teams will be accountable for and empowered to motivate the entire workforce and influence change in their organizations.
The survey was conducted with Market Cube, and involved nearly 800 participants working at enterprise companies with 500 or more employees. Respondents were HR specialists as well as people managers serving in non-HR roles. 42 percent were people managers at the director level or above, and 38 percent of HR-specialist respondents were director level or above. Three out of four respondents worked at companies with more than 1,000 employees, and one out of three worked for a company with more than 5,000 employees.
About Betterworks Betterworks® is HR software to align, develop and activate your workforce for business growth. Organizations are able to replace outdated, ineffective, universally loathed annual review processes with powerful Continuous Performance Management® programs that help managers be better at the goal alignment, feedback, coaching and development conversations necessary to inspire and motivate the entire workforce to collectively achieve an organization's top priorities today and be ready for tomorrow's challenges.