November 10, 2017

How Modern HR Tech is Reshaping Performance Management

Most human resource professionals and managers do not enjoy the prospect of measuring performance. It can be awkward at best. Yet, the key to an engaged and productive workforce is the use of a strategic performance management system. In our modern human resource world, technology is leading the way with solutions that replace tedious and outdated performance reviews.
Employee engagement is a symptom of performance management
The Society for Human Resource Management’s 2017 Employee Job Satisfaction Report advised that 89 percent of the US workforce is somewhat or very satisfied with their current careers, but even so, nearly 40 percent are open to new job opportunities with other organizations. The study also found that compensation and the ability for employees to use all their skills ranked in the top five factors that impact job satisfaction. This all indicates that there is still work to be done in terms of employee engagement and performance management.
How is modern HR technology creating new and better ways of managing employee performance?
In terms of HR technology, let’s focus on how it can streamline and simplify the entire performance management process. This is where human resource leaders gain the most value. In the past, HR has been prone to using multiple platforms to try to manage everything from onboarding and training new hires to evaluate salaries and setting revenue goals. Unfortunately, rarely do any of these systems “talk” to each other, therefore HR has been forced to turn to spreadsheets and presentations that lumped this information into one place.
With performance management technology, it’s possible to handle all of the areas of human capital using a central dashboard that offers a high-level view, plus the ability to drill down to more detailed information. This opens up more time to evaluate how the organization is doing, what areas need improvement, and what direction it needs to head in.
The Deloitte 2017 Global Human Capital Trends report shows that when companies take a more modern approach in regards to performance management, they experience positive results. Ninety percent of the companies polled said that they experienced direct improvements in employee engagement due to the redesign of their performance management systems. Another 89 percent said that communication between management and employees was improved too. In an age where coaching of employees has become more mainstream, it is critical that organizations have a technology solution that can manage every facet.
Performance management is evolving
Company leaders have learned that the way in which they can best influence employee performance is by taking interest in the satisfaction of their workforce. This is certainly critical in a candidate-driven market when competing firms are eager to lure high-performance employees away.
The future of performance management is more human-centred. Businesses that want to remain strong do so because they develop a corporate culture that is based on the day-to-day experiences of employees. Recognizing small milestones, demonstrating respect for employees, and offering career paths that are rewarding are just some of the ways that performance management has evolved.
In the past, management spent far too much time trying to measure employees against other employees, in an annual review process that did not focus on overall performance, but rather like grading students on a curve system. These reviews were almost always connected to salary increases, which made them all the more stressful. Now, technology gives human resources a look at the bigger picture when it comes to employee performance and output. Reports show peak performance periods and can match them with hard figures that indicate additional revenues and innovations have occurred. This is far more useful than one-off performance reviews.
An article in Harvard Business Review demonstrates the value of frequent check-ins with management and employee performance driven by metrics. Companies like Dell, IBM, and General Electric have adopted models that are more efficient — and they rely on technology to track results and predict the success of their people. This is the future of performance management.
In thinking of the ways that a performance management system can increase employee engagement and productivity for your business, understand what your goals are first. Then select a solution that offers the features your organization needs to produce tangible results.
What you can do to improve your HR management
Ensuring you manage your human resources efficiently, both internally with your workforce and externally with your stakeholders, is important for your overall internal management and productivity. To make it easier for yourself, with our INX stakeholder management solutions, you can simplify obligation and communication management to ensure compliance and stakeholder satisfaction.

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