As an organization grows and gains a better foothold in the market, the number of people working in it increases. While team leaders usually work with smaller groups, managers and HRMs have to account for a lot of people working under them. Thus, keeping track of all employees can be difficult.
In a survey by Deloitte, it was found that 79% believe that continuous reviews are a priority. However, as per Forbes, only 14% feel motivated after a review.
To boost these statistics, having a good performance management solution is essential.
What is Meant by Performance Management Solution?
To maintain organizational efficiency, it is important to assess the skills of each employee, understand their motivations, observe how they are performing, and set targets accordingly. However, data related to these indicators can be disorganized and difficult to condense into a singular report.
As an HRM, you can resolve this using a performance management solution that helps assess these and provides analytical reports. Thus, a performance management solution can help track and improve an employee’s performance, and in turn, the organization’s.
Key Aspects of a Performance Management Solution
An effective performance management solution has certain crucial functions.
Are They Beneficial for an Organization?
According to Gallup, when given proper reviews, employee turnover can be reduced by 14.9%.
The main purpose behind using performance management solution are:
Set clear objectives
Provide accurate feedback
Conduct regular appraisals
Reward achievements
Lay out plans to improve performance
Thus they help HRMs achieve:
Higher productivity among workers
Lower employee turnover rates and retain the top performers
Align employee goals to the company’s long-term plans
Accurate and data-based employee appraisals
Comparing the Performance of Top HR Tools
When looking for HR tools, multiple options are available. Six of the top methods that are used by most HRMs include:
Success Circles™
An innovative AI based performance management solution, Success Circles™ creates an interactive visual representation that covers the below aspects:
Development
Leadership
Communication
Performance
Culture and brand
Using inputs based on each employee’s targets, appraisals, achievements, and awards, Success Circles™ creates a graphical analysis of each employee’s potential and performance. This is an excellent tool for performance monitoring as well as succession planning.
9 box Grid
When using a 9-box grid, performance vs potential is evaluated in terms of the current performance of each worker and how much they can achieve with the right guidance. This is a fairly easy method to use where you plot a 3x3 grid using the 9-box grid performance vs potential matrix.
This was one of the top methods that helped identify people with the most potential, awarding promotions and incentives, and helping workers develop their skill set.
16 box Talent Matrix
This works in a manner very similar to the 9-box grid but is more detailed. Thus, it addresses one of the drawbacks of the 9-box grid performance vs potential matrix: most people do not fall into the average middle box.
Hence, if you are comfortable with using the 9-box grid and looking for something better yet similar, this can be a viable option.
Performance Values Matrix by Jack Welch
The two aspects that are used to generate the performance values matrix are
How well a worker executes an assigned task
If the worker adheres to the values set by the organization
Using this, employees are sorted into:
Top workers
Solid employees
Non-contributors
Violators
By identifying the potential of each employee, this tool is useful as a performance management solution.
360 Degree Feedback
Using inputs from multiple sources, the 360-degree feedback system creates a detailed evaluation of a worker. However, accounting for the fact that it uses inputs from other team leaders, managers, and peers, this tool is better suited for middle management.
Individual Development Plans
These are tailored to each employee based on their individual needs. This is usually applied by team leaders and managers to individuals who require more attention than the entire team, be it for inducting them into a leadership position or improving their performance.
These are usually not used at the first stage of performance management since creating individual plans for each employee can be a huge task.
Selecting the Right Performance Management Solution
If you deploy a performance management solution that does not accommodate your company’s needs, is not scalable, or does not generate adequate analytics, then it simply falls short of expectations.
To know which performance management solution is best for your company, evaluate it in the following terms.
To Proceed
A software tool for performance evaluation helps ensure a fair appraisal system that is free from bias, transparent, and easy to understand. Generate analytics and keep track of each employee with performance evaluation tools.
As an HRM, use a performance management solution to streamline your operations.
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