What is a Performance Management System?
In the era of competition and globalization, organizations have realized the importance of strategic HR practices for gaining a competitive edge over the competitors.
Huge part of the HR people’s time is focused on Hiring talent. But, what do you do to keep them, and coach them to achieve their personal and the business goals?
Performance Management is just as important for small businesses as it is for multi-billion dollar corporations. Employees need feedback, overperformers need to be engaged, and underperformers need a clear improvement plan.
What is a Performance Management System?
Performance management is the full spectrum of bringing out the best (or correcting the worst) in your employees from the moment you hire them until they leave (or are fired).
What is NOT a Performance Management System?
Performance Management is not a payroll solution, or an employee database, or an employee onboarding system or nothing what Human Resources Management System (HRMS) or Human Resources Information System (HRIS) does. This type of HR software is really useful.
FAQs
We’re using an HR software in my company. Why do I need a Performance Management system?
Read above. You need to understand the difference between the benefits that an HRMS provides to you (payroll, benefits, holidays calendar, etc) with the benefits of the Performance Management system, and help your team perform at its best.
Why do I need to invest more in company culture? We have ping pong tables and an gorgeous office!
You never invest enough time and resources in company culture. And company culture and great workplace it’s not about ping pong tables or free snacks. It about fulfills the basic needs of your team members, makes them accountable for their own work, and help them achieve business and personal goals.
We only hire the best talent. Why do I need a Performance Management System?
You spend so much time and resources searching for the best talent for your company, why don’t you spend more time and resources trying to retain them? With the right Performance Management system in place, you can keep your employees motivated, happy and aligned with the business and company goals.
We’re only 17 people company. I’m the CEO and I’m talking with everybody all the time, why do I need something like this?
Yeah right. You’re talking with everybody about projects, deadlines, strategy and so on. In a day to day basis, everyone forget about why everyone is working there. With a Performance Management system, you can build a supportive company culture where people feel connected to the mission and values of the business.
Everybody knows what they need to do. Why do I need to say to them?
The business changes constantly, and very quickly. If you don’t communicate the goals, the objectives and the direction everyone should be focusing on, people will feel lost. A Performance Management system can help you align your team members with their own goals and the company goals.
