Performance review and PDP: do you know how these concepts relate? Following a review, the next steps must be taken with regard to the development of your company's employees. This will be possible through the Personal Development Plan, which will be tracked by the leaders throughout the cycle.
We elaborate on the topic in this post. Read on and learn more!
As we know, a performance review is a structured assessment of an employee's individual performance. It allows the company to develop based on improvements in employee performance.
It usually consists of a number of questionnaires, in which questions will be answered by one or more reviewers about the reviewee. Among the questions to be answered by the reviewees and asked by the management, the following should be stressed:
- what is not going well and how it impacts the employee and the company in a negative way;
- what the direct report is doing well and how it impacts the company in a positive way;
- what the priorities should be for the coming months.
In addition, the team also has the option of performing a self-review. Through it, employees acquire greater self-knowledge and are able to better reflect on his routine. Among the questions asked, the following should be highlighted:
- what are the main results achieved in the last few months;
- what can be improved;
- in which areas the direct report is doing well.
Performance review findings
Under this scenario, the last stage of a well-structured performance review process is its feedback. Management and the professional will, then, meet (occasionally supported by a member of the HR team) and discuss crucial aspects for the employee's development. These are:
- the findings of the review, behaviors observed, and the results achieved;
- inputs for employee development over the next cycle;
- decisions made with regard to promotion, compensation, and reallocation of employees within the same team.
A trend has, thus, been observed in Human Resources. It foresees the holding of two separate meetings. In the first, management will disclose feedback, with the main findings obtained during the process, in addition to defining the development inputs. In the second, the decisions made for the cycle will be communicated.
Performance Review and Personal Development Plan
In this sense, how would performance reviews and the Personal Development Plan relate? The manager's review sets forth some of the priorities for the coming months.
This question will allow both leaders and direct reports to establish their priorities for the next cycle, thus ensuring alignment between the leadership and employees. If the company works with OKRs, for instance (or even traditional goals), this discussion will revolve around what the goals for the next cycle should be, in a way that addresses the organization’s overall objectives.
If this methodology has not been formally put into practice, it is necessary to indicate the priority focus areas or projects and deliverables that must be executed in order for the company to achieve its goals and ensure its mission.
In addition, from a behavioral point of view, one or two areas should be the focus where the direct report will concentrate his of her efforts for improvement. That's where the PDP comes in.
To do this, both leaders and their direct reports must understand:
- What area needs to develop?
- How to be specific in the Personal Development Plan?
- How can they follow up, throughout the year, on the created Plan?
- How can they apply all the knowledge acquired during these months?
Back in the day, companies would arrange their performance management cycles based on the fiscal calendar. That is, annually. However, this is not a very usual practice. In 2020, for instance, the Covid-19 pandemic greatly affected the plans of many companies – and, consequently, of employees. Therefore, going for shorter cycles is the best way to also adapt people's development to the reality of the market and the company's global goals.
Some companies, however, where more complex processes are considered to establish expectations and performance reviews, choose to carry out simpler cycles. That is, focused on pleople development and their own performance, maintaining a more comprehensive annual cycle where decisions will be made, strengthening the company's talent management.
Performance management tool
When it comes to the Personal Development Plan itself, why should your company have a performance management tool?
1. Monitoring the created plans
Such a solution gives leaders the opportunity to help their direct reports develop the skills they want to learn, as well as prioritize those that the company needs for its growth. The tool allows teams to easily create and structure PDPs through action plans.
2. Custom PDPs
In addition, leaders and their direct reports can build and monitor PDPs together, and customize documents to the needs of each member of the team.
3. Easy and continuous follow-up
As mentioned, follow-up is key to understand whether the desired results were achieved or not. Through a software program, both the leaders and Human Resources are able to track this progress at any time.
4. Cross-referencing relevant information
This material discussed how performance reviews and PDPs relate, right? Using a performance management tool, teams are able to evaluate the performance review of a particular person and quickly understand the main points of the feedback. This way, follow-up becomes even more precise, ensuring the effective results foreseen by this strategy.
This material addressed the relation between PDPs and performance reviews and how a performance management solution can contribute to your business.
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