Why is a performance management solution important to your organization? Because any organization that wants to drive sustainable high performance requires their managers to regularly and consistently manage performance. Consider how you communicate to your team what your goals are for the coming year, and how you need those goals to be executed against? A performance management solution helps businesses to align activities to goals by department, location and individual. In turn, it then allows managers to track results against those activities and goals for both high and low performers. This type of tracking enables your organization to make better informed performance based employment decisions, and arms an employer with important information to assist them in compliance related issues.
Effective performance management solutions assist organizations related to:
- Year round focus on key business initiatives
- Reduces attrition and supports retention
- Focuses optimization of training expenditures and results
- Improves understanding and focus of how a team member is aligned to the company’s overall objectives and what is expected
- Clear expectation setting related to team member development plans
- Increases accountability (for both managers and team members) and empowerment through team member involvement
- Enables recognition of high performers with or without pay incentives
- Encourage proactive communication
- Provide insight into goals alignment vs. goals attainment
- Removal of paper based, high burden administrative processes for both managers and HR
- Enables flexibility on how and when performance is to be assessed
- Facilitates the sharing of critical information between the HRMS and the performance management solutions
- Enables the housing and tracking of relevant employee data
- Tracks critical certifications and licensure
Automated performance management solutions should also provide:
- Flexibility related to the delivery approach:
- Rating Scale
- Management By Objectives
- Peer Reviews
- 360-Degree Feedback
- Forced Distribution
- And more
- Flexibility and/or consistency in the approach that your organization may require across departments. Each of these scenarios, however, may require consistency with HR guidelines and inclusion of those factors are critical.
- Portal approach access for managers, team members and peer review as desired.
- Allow for the exchange relevant data between the HRMS and the performance management solution, if applicable:
- Key learning objectives / accomplishments throughout the year
- Any performance improvement plans that could impact the overall rating
- Pay increases, as applicable
When a performance management solution is used as a strategic business tool it assists in driving efficiencies supporting performance management delivery, engagement, productivity and profitability.