31 May Is It Time For You To Revamp Your Performance Management System?
If you’re like many business leaders, you may be considering ways in which your company could revamp its existing performance management system. Interestingly, while the majority of business professionals (73%) feel that their organizations need to change their performance management approach, only 34% intend to move away from traditional performance review processes, according to HRE Online.
The question becomes, then, if nearly all business leaders understand the link between an effective performance management system and a high performing workforce, why are so few addressing the need for a new approach?
The Comfort Factor
We can only speculate why so many organizations are choosing to stand by their traditional performance management process, and there could be many reasons. Anticipating opposition over any new processes could be one reason, while another could be that many companies as a whole have just become comfortable with their current practices.
Look Who’s Changing Their Ways
Here’s something to consider, though. Ousting your existing performance management system in exchange for a more agile approach that allows employees to align their efforts to company goals and receive 360° real-time feedback isn’t just the latest fad in business. It’s a proven process by which many companies have achieved increasing success. According to FastCompany, the following companies have banished the formal annual review for better alternatives: Google, General Electric, Adobe, Eli Lilly, Accenture, and Cargill.
Do You Need to Change, Too?
If the support from the industry titans listed above isn’t enough to influence your decision, consider your own company’s status, and ask yourself:
- Are all of your employees engaged at work?
- Is your company hitting the majority of its corporate goals?
- Is there a healthy, continuous dialogue happening between managers and employees?
- Do you have a problem with turnover?
- Does every direct contributor know how his or her efforts factor into achieving company goals?
If your answers point to the fact that you may need a new performance management solution, it may be time to start considering your options. While implementing a new performance management system may require an initial investment of time, it will pay off in countless ways, including improved engagement and performance and better overall results.
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. To learn more about our Performance Management Software, PERFORMview, click the button below!