tech respondents performance likely continuous feedback industry

Performance Management in 2020: Key Tech Industry InsightsIn the past several months, companies have meaningfully changed how theyapproach performance management. Based on our 2020 Performance ManagementBenchmark Report, we identified interesting insights on how the tech industryhas compared to financial services, health care, and other sectors.Our responses from 445 HR professionals and business leaders uncovered somesimilarities between tech and other industries, such as adoption of reviews,ratings, and continuous feedback. Where tech leaders have respondeddifferently is in their challenges with organizational alignment. Tech firmsalso take a different approach to performance management, and incorporate moredata into their decision-making and planning.## Consistencies with Peers in Usage of Reviews, Ratings, and ContinuousFeedbackFirst, let’s start with the similarities between performance management in thetech industry versus other sectors.Performance ratings are also consistently communicated to employees: 96% oftech respondents communicate ratings, versus the 89% peer average. Regardlessof whether your company uses ratings or not, communicating performancefeedback regularly helps employees grow and develop.Continuous feedback adoption is another similarity between tech and otherindustries. Sixty-three percent of tech respondents currently use continuousfeedback, vs. the 60% peer average.Per the 2020 Performance Management Benchmark Report, there is room forimprovement here. Since 2018, there has been a 170% increase in the percentageof leaders & HR professionals who expect managers to offer feedback to directreports daily. Similarly, there has been an 89% increase in the percentage ofemployees who want formal performance conversations monthly or morefrequently. One thing is clear — leaders, HR teams, and employees alike seethe value of continuous feedback, and desire more of it.## Tech Industry Struggles with Organizational Alignment, Partnership withLeadersAnother area of opportunity for the tech industry is improved alignment withleaders, peers, and teams. This was a surprising insight for us: asprofessionals comfortable with technology, we thought tech respondents wouldhave less difficulty staying connected to their colleagues. The survey dataindicated otherwise! Tech respondents are: * 3X more likely to have more frequent disagreements with leadership * 1.7X more likely to say it’s harder to stay aligned with their team Similarly, tech respondents are less likely to partner with leadership ondriving a culture of feedback: * While 17% of all respondents said that they partner with leadership to run their continuous feedback program, 0% of tech respondents said that they do * Tech respondents are 55% less likely to inform leadership about the change to a continuous feedback approach * 38% of all respondents said that executive support was most helpful in shifting to a continuous feedback model — and only 23% of tech respondents felt the same (a delta of 65%)How can tech companies improve organizational alignment? Consistentcommunication, as well as technology to support productive 1:1s and goalalignment, can help tech leaders stay connected while they’re remote. Morebest practices for goal-setting in times of change are available in thisNextRoll blog post.## Fewer Workforce Changes in the Tech IndustryAnother difference between the tech industry and other sectors is that theformer was less impacted by the events of 2020. Per the survey data, techrespondents were: * 2.1X less likely to have executed a Reduction in Force * 73% less likely to have furloughed staff * 76% more likely to report “no impact, business as usual” regarding the current climateTech respondents were also more likely to forecast smooth sailing ahead. Perthe survey data, tech leaders are 1.4X less likely to anticipate changes inworkforce planning later in 2020.## Tech Respondents More Likely to Use Data to Predict Employee Performanceand TurnoverRachel Ernst, CHRO at Reflektive, believes that there are a few reasons whytech companies have fared well versus other industries in 2020. “Not only istechnology crucial to all of our day-to-day activities, but tech firms alsohad robust talent plans available at the start of the pandemic thanks to theirstrategic, ongoing usage of people data. This forward-looking approach allowedtech companies to make smaller changes early, rather than waiting severalmonths to execute major organizational changes.”Survey data also reveals the tech industry’s data-backed approach toperformance programs: * 78% of tech respondents use people analytics to predict employee performance, which is 56% higher than the peer average * 77% of tech respondents use people analytics to predict employee turnover, which is 48% higher than the peer averageAdditionally, tech firms expect to rely even more on technology in the future.In the next 6 months, 48% of tech respondents expect more investment intechnology, which is 37% higher than the peer average.Per Taylor Orr, Talent Management Program Manager at Dropbox, “We’recontinuing to look at more sophisticated ways to tie individual performance toteam and company performance. We’re analyzing what makes individualcontributors successful and managers impactful at Dropbox, and this requiressynthesizing and analyzing many sources of data, including employee surveyscores and performance data. By figuring out what makes people successful, wecan encourage these behaviors starting at the recruiting stage and continue topepper our learnings throughout the programs and processes that touch theemployee lifecycle.”Having a data-backed approach to performance management – as well as productsand services that can be used remotely – has helped tech companies weather theup’s and down’s of 2020. With the right programs in place, all tech companiescan boost communication and alignment, and ultimately achieve key goals fortheir organization.Interested in learning more performance best practices for tech companies?Schedule a consult with an expert.