Do employee performance management (E.P.M.) initiatives create high-performance cultures, align compensation with performance, and increase visibility and accountability for employee performance?
Ninety percent of all organizations surveyed by the Aberdeen Group have a formal employee performance management initiative, and 88 percent of them have a formal process to manage employee performance. But Best-in-Class (B-i-C) organizations define their E.P.M. methods and metrics much better than lesser-performing companies.
The study showed that implementing successful E.P.M. initiatives hasa great impact on customer satisfaction — a key factor for the financial success of the organization.
B-i-C organizations realized the following gains:
>> increased manager satisfaction 31 percent
>> increased employee engagement 30 percent
>> 84 percent of workforce met or exceeded performance expectations
Survey results show that the firms enjoying B-i-C performance shared seveal common characteristics:
1) Incorporated individual goals in the performance process.
2) Standardized the E.P.M. process across the enterprise.
3) Embraced technology to streamline the process.
4) Integrated performance with talent management and a corporate performance tool (or scorecard).
They were also more than likely than under-performers to create a high-performance culture and align compensation with individual and company performance.
B-i-C process differentiators highlight two vital elements: accountability and collaboration. These organizations are 46 percent more likely than others to adopt a process to hold employees accountable for their individual goal attainment and progress. At the same time, 82 percent have a process that holds managers accountable for defining goals and expectations. About 60 percent have implemented a formal 360-degree/multi-rater process to ensure that employees are evaluated from the point of view of all stakeholders — and they are 69 percent more likely than others to do so. Also of note: B-i-C organizations are 18 percent more likely to involve employees in the goal definition process.
What the survey determined is that, while senior leadership buy-in for a goal-oriented performance management initiative is positive, it is more critical to have manager and supervisor buy-in.
“More than ever, human capital management leaders are hard-pressed to prove that talent initatives impact the financial results of the organization,” wrote Jayson Saba, author of the Aberdeen research report. “Similarly, business leaders — including front-line managers — have to be on board to accept accountability for managing the talent that contributes to their teams’ success. An E.P.M. initiative is a great tool to align employees with business objectives.
“Effective talent management strategies rely on a sound performance management strategy. An effective performance management program begins with standardizing the process and the reviews company-wide. It also ensures that employees and managers collaborate on defining goals, thus fostering engagement and accountability. Automation, reporting and integration are enabling Best-in-Class success and superiority, especially in creating a high-performance culture highlighted by increased employee and manager satisfaction.”
More report details: www.aberdeen.com/aberdeen-library/6361/RA-employee-performance-management.aspx
Do employee performance management (E.P.M.) initiatives create high-performance cultures, align compensation with performance, and increase visibility and accountability for employee performance?
Ninety percent of all organizations surveyed by the Aberdeen Group have a formal employee performance management initiative, and 88 percent of them have a formal process to manage employee performance. But Best-in-Class (B-i-C) organizations define their E.P.M. methods and metrics much better than lesser-performing companies.
The study showed that implementing successful E.P.M. initiatives hasa great impact on customer satisfaction — a key factor for the financial success of the organization.
B-i-C organizations realized the following gains:
>> increased manager satisfaction 31 percent
>> increased employee engagement 30 percent
>> 84 percent of workforce met or exceeded performance expectations
Survey results show that the firms enjoying B-i-C performance shared seveal common characteristics:
1) Incorporated individual goals in the performance process.
2) Standardized the E.P.M. process across the enterprise.
3) Embraced technology to streamline the process.
4) Integrated performance with talent management and a corporate performance tool (or scorecard).
They were also more than likely than under-performers to create a high-performance culture and align compensation with individual and company performance.
B-i-C process differentiators highlight two vital elements: accountability and collaboration. These organizations are 46 percent more likely than others to adopt a process to hold employees accountable for their individual goal attainment and progress. At the same time, 82 percent have a process that holds managers accountable for defining goals and expectations. About 60 percent have implemented a formal 360-degree/multi-rater process to ensure that employees are evaluated from the point of view of all stakeholders — and they are 69 percent more likely than others to do so. Also of note: B-i-C organizations are 18 percent more likely to involve employees in the goal definition process.
What the survey determined is that, while senior leadership buy-in for a goal-oriented performance management initiative is positive, it is more critical to have manager and supervisor buy-in.
“More than ever, human capital management leaders are hard-pressed to prove that talent initatives impact the financial results of the organization,” wrote Jayson Saba, author of the Aberdeen research report. “Similarly, business leaders — including front-line managers — have to be on board to accept accountability for managing the talent that contributes to their teams’ success. An E.P.M. initiative is a great tool to align employees with business objectives.
“Effective talent management strategies rely on a sound performance management strategy. An effective performance management program begins with standardizing the process and the reviews company-wide. It also ensures that employees and managers collaborate on defining goals, thus fostering engagement and accountability. Automation, reporting and integration are enabling Best-in-Class success and superiority, especially in creating a high-performance culture highlighted by increased employee and manager satisfaction.”
More report details: www.aberdeen.com/aberdeen-library/6361/RA-employee-performance-management.aspx
