Leading organizations that adopt a customized approach to process design cite increases in overall satisfaction with employee performance management and increased employee retention metrics. The ability to customize processes is an important characteristic to look for when evaluating technology solutions.
It’s impossible to give detailed advice about this complex and critical area of talent management here. Therefore, we’ll focus on three areas: performance management maturity, which can help talent leaders assess an organization and guide planning; talent management metrics; and high-level considerations when purchasing technology solutions.
Performance Management Maturity
Don’t be disheartened if your organization’s current performance management processes fall below expectations. It takes many years for organizations to develop mature processes and practices. Organizations likely fall into one of the following four stages of maturity:
1. Inconsistent performance planning and appraisals: In this first stage, an organization will support employee performance appraisal for managers to develop performance plans and rate employees annually. Practices usually are not automated, and as a result, they are applied inconsistently. Managers and employees regard performance management as an administrative exercise, not as a business improvement tool.
2. Enterprise-wide performance management: Moving to this stage is difficult. An organization will implement enterprise-wide practices and standards such as goal-setting, common rating scales, core and level competencies, mandatory development plans and pay for performance. To achieve consistency and compliance, many implement a technology solution focused on performance management. Most organizations find themselves at this level.
3. Integrated performance management: In this stage, organizations pursue a more integrated approach with employee performance management at the core of talent strategy. More emphasis is placed on establishing a talent culture. Organizations design performance support for managers as coaches and career managers. Integration points with career and succession management are established.