Those were some great words of wisdom from the latest Forrester report on the state of performance appraisals. Traditional performance management is a very backward-looking process. Until now, companies were so focused on last year’s performance data that nothing was being done to actually drive success and make changes in the now.
“The employee performance appraisal is an underperforming, periodic business process that is loathed by both employees and managers alike. Historically linked to the annual salary review, performance appraisals often focus on HR-driven criteria for skills and competencies rather than business outcomes. The human resources management (HRM) technology solutions offered by leading vendors are typically built around this dysfunctional paradigm.” - Forrester Research, Inc. report, “Disrupt the Employee Performance Process to Align with Business and Customer Outcomes.” (July 2, 2014)
Besides the focus being off, traditional performance management isn’t built with a strategy that aligns with the company values and vision. In order to take performance management from being just another compliance issue, to driving the success of the organization strategically, you will rely heavily on performance management software.
Successful Performance Management Software
Performance management is going through some huge changes right now. Employers are starting to look at the whole system in a different light. It’s no longer seen as a checkbox item, but rather a viable and integral part of driving organizational success. The biggest change is the breaking down of the performance management silo. Until now, with ClearCompany’s fully integrated platform, performance management has been its own separate entity.
The traditional disconnect that we see between performance management and the other stages of the employee lifecycle renders the facilitation and management of each stage far less effective. Onboarding, compensation, succession, training and offboarding all have an essential connection with performance management and one another. Common HR technologies don’t allow HR to connect these stages, with the organization’s vision and goals at the hub, like ClearCompany’s fully integrated suite.
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Andre is the CEO and co-founder of ClearCompany. Prior to ClearCompany, Andre was Global Managing Director at Thomson Reuters, where he ran a 1Bn global business across 90 countries. Prior to Thomson Reuters, Andre was responsible for product development and operations at CCBN, a company he helped grow from a small start-up to number 36 on the INC 500.