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3 Rules To Never Break When Selecting Your Performance Management System

Posted by Sarah Lindner on July 15, 2014

Have you recently thought about introducing a performance management system into your company? Or are you not happy with the one you have? The recent Mercer global performance management study (2013) emphasizes that only 3% of company CEOs believe that their current one actually adds value. Which performance management tool you implement depends on your preference as a company.

Here are a few key points to keep in mind:

1. Use a tool that is easy-to use and intuitive

The BCG & EAPM study (2013) shows that the 2300 interviewed executives consider performance management of key importance for the future of their company, they struggle to find the right tools that help them. Top executives and HR can get the ball rolling on these initiatives, but team managers/supervisors are the ones who must be able and willing to execute them. Therefore your company should only consider an easy-to-use and intuitive performance system. The right one will provide support for all employees and show risks and opportunities for individual, team and organizational development.

2. Use a tool which helps you understand where action is required

With the help of the new performance tool the employee and the supervisor will rate the performance and determine together which next steps will be taken. A good option is using unified rating scales throughout your company (also read article IV). They provide the opportunity to compare the employee’s performance over time and also show you which members of your team do not perform well and might need an additional training or coaching session.

3. Use a tool that provides clear analytics

The BCG & EAPM (2013) study emphasizes that successful companies understand their performance management systems as a learning opportunity. The tool should display the employee data nicely, so you understand exactly in which areas your company can improve and where you can draw lessons for everyone. In addition this tool can create transparency and also help to create an atmosphere of unity and connectivity between your employees.

There is a checklist of what your new effective performance management system should entail:

  • Intuitive user interface
  • Easy to understand the steps in the process
  • Provide opportunities for individual development
  • Have a good display of the analytics
  • Personalization of the rating scales
  • Allow for data comparisons over time


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Topics: HR Trends, HR Solutions

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