To address the variety of challenges HR executives face, they've increased their use of performance management solutions to achieve greater visibility into their talent pool.
IDC research shows that HR executives are facing a number of talent challenges in 2006. Chief among these are employee retention, shortages of candidates for key jobs and succession planning. To address these concerns, more executives are looking to workforce performance management solutions as a means to achieve greater visibility into their own talent pool.
The goal is to identify and retain top performers while at the same time streamlining the entire performance-appraisal process so that it is more automated and integrated with other talent functions. Despite these challenges, HR executives already have amassed a number of best practices relating to the execution of effective performance management solutions within their companies.
IDC defines workforce performance management (WPM) as a dynamic, adaptable communication and reporting system that needs to interact with other processes as part of the larger area of talent management in order to effectively reward and develop the workforce. In addition to WPM, talent management includes processes such as candidate sourcing, workforce planning, development and training, succession planning and compensation.
Although products vary by degree, workforce performance management systems generally include most or all of the following components:
• Performance Review Management: A systematic tool for automating the performance-review process for managers and employees at all levels, ensuring a consistent methodology is used across the enterprise.
• Goals Management: A mechanism for creating, communicating and tracking corporate goals companywide.
• Competency Management: A library of role-based competencies, associated behaviors and development needs.
• 360-Degree/Multirater Tool: A device available to managers and employees for capturing multiple inputs to the performance-review process.
• Analytics and Reporting: Diagnostic tools for the collection and analysis of companywide information needed for strategic performance management decisions.