MELBOURNE, AUSTRALIA – April 26th, 2011 – Leading Talent Management solutions provider, PageUp People, today announced results from their recent Performance Management market survey, which indicates that despite best-practices, businesses are still not successfully planning, executing and integrating performance management into other aspects of talent management.
The survey found that more than 80% of surveyed companies cited increasing employee productivity and performance as well as improving employee engagement and development as main drivers behind their performance management process. However, fewer than 50% claimed to see those same goals effectively achieved.
Organizations view performance management as an imperative business process – with over 90% claiming a formal process is in place, and nearly 50% reviewing performance annually.
There are concerns as to how well companies incorporate performance management with an overarching talent management strategy. Since the business outcomes of employee performance management lose effectiveness when solely conducted as part of an annual process, businesses should see increased benefit from conducting more frequent informal performance discussion and development activities with employees throughout the year.
PageUp People’s survey found that only 40% of surveyed companies conducted informal reviews at least twice a year.
“To be truly effective, performance management shouldn’t be a standalone process or something that happens once a year and is tabled until next year’s formal review,” noted Deborah Mason, PageUp People Regional CEO. “Our market survey findings support PageUp People’s methodology which starts with the core Capability Framework, includes Performance Management as an element of complete talent management and encourages ongoing open communication, feedback and development between employees and their managers.”
Employers can also help reinforce positive behaviour and performance culture by aligning organisational goals and employee objectives as part of this ongoing process. PageUp People’s survey reports that an overwhelming 90% of companies base performance objectives on key performance indicators, whereas only one third of those surveyed incorporate feedback from previous reviews.
To maximise results, employers should link development and career planning from the employee perspective with succession management from the business’ perspective and align with overall organizational goals – something only done by just more than half of companies surveyed. This approach fosters clearer communication and, in turn, greater employee job satisfaction and motivation.
According to survey results, among the most difficult aspects of performance management are ongoing coaching and development outside the annual performance review process, and providing employees with the information and support needed to make improvements. While over 50% of survey respondents have implemented technology to execute performance management initiatives, most have not fully leveraged its power and insight by integrating with other talent management applications such as learning management, compensation and succession systems.
By taking this step, employers gain the ability to seamlessly create a comprehensive, ongoing conversation between employees and managers throughout the year. This supports the best practices performance management model encouraged by PageUp People and links performance data with development activities, helping employers fill competency gaps, manage under-performers and retain high calibre staff.
PageUp People’s recent white paper “The Neuroscience of Learning and Development: Crystalizing Potential” explains how companies can equip their talent with the requisite skills for high individual business performance by exploring the neuro-scientific underpinnings of the learning process. View more information about PageUp People’s Performance Management solutions.