Performance Management is a Cornerstone Practice

“Once viewed as a stand-alone employee appraisal process designed to feed compensation and promotion decisions, performance management has now become the cornerstone of modern talent management,” says Leighanne Levensaler, director of talent management research and primary author of two new research reports from Bersin & Associates. “Our research found that this seemingly simple process is undergoing significant transformation as organizations embark on automating goal alignment, assessment, coaching, development, and succession processes.”
Important findings include:
>> The performance management market is estimated to reach $520 million by end of 2008, a 35 percent increase from 2007.
>> Effective employee management practices focus on alignment, coaching, development and measurement.
>> The red-hot market for performance management software is paying off for buyers in terms of return on investment.
>> Managers and supervisors drive the success or failure of any talent management strategy, but 45 percent of respondents believe managers in their organizations have difficulty in differentiating between high and low performers.
>> Performance management based on coaching and development has stronger positive outcomes than that based primarily on competitive assessment.
>> To maximize business value, high-performing organizations tailor practices according to operating functions, geography and culture, legal requirements, and unique needs of different workforce segments.
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