KPMG, one of the largest professional services companies in the world has recently made changes to its employee engagement programs and performance management methods in an effort to hire and keep the “best” employees. One of the examples is “Higher Purpose”, a business initiative created to encourage employees to share and discuss their experiences in business. Employees are also rewarded with a paid holiday if more than 5,000 stories are shared in the process.
Performance management is becoming ever so important as businesses strive to become as efficient and effective as possible in order to remain competitive. In order to keep employees engaged and focused on the business’s objectives to improve productivity and create a healthy working environment, a proper feedback system is also required. A change that KPMG made to its performance management is the removal of rating systems, and the implementation of immediate feedback and debriefings for every major assignment. Also, they are increasing the bonuses for the higher performing employees in order to make this group more distinguished.
I personally believe that businesses should never retain the same performance management practices for a long period of time, but should instead experiment with different strategies to decide which is the most effective.