The shift from annual reviews to continuous performance management reflects the changing expectations of employees and leaders. HCM systems support collaborative evaluations, transparent performance metrics, and data-driven coaching. Real-time insights help managers track progress, identify performance gaps, and support employee growth. 360-degree feedback enhances fairness, while AI-based suggestions guide managers in setting realistic goals.

Performance analytics highlight patterns in productivity, engagement, and team dynamics, helping organizations allocate talent more effectively. Using data to inform decisions also supports succession planning and high-potential employee identification.

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