Employee Performance Management System

Talent management is one of the most critical and ever challenging activities for any HR team. Sound performance management system is quintessential for the success of any talent management strategy for any organizations. While lot of organizations have automated their Performance evaluation and rating processes a large number of small and medium enterprises continues to struggle between legacy systems and new age Human capital management systems which integrates different aspects of performance measurement and also integrates it with other ERP and HRIS (human resource information system) .Some of the key factors which needs to be considered while adopting automated IT system based performance evaluation model are:

• A well defined performance management tool should focus on arriving at role based assessment and evaluation matrix which is duly aligned with the competencies defined for each role.

• Ratings must translate into performance index scores and should follow the philosophy of the performance evaluation and distribution method generally followed, for example –MBO, Force rating method or Behaviorally Anchored Rating Scales.

• Key tasks and related competencies for each task should be duly mapped and performance grading should have pre set values assigned to the tasks performed.

• It must consider the various variables which have influence of the final deliverables. These variables will again be unique to the roles and competencies.

• Performance index must be benchmarked for different performance scales (best, average and below average performers)

• It should integrate metrics and milestones from any other HR or Internal systems, to enable evaluator assess more accurately with the help of readily available data for specific tasks.

• Should capture qualitative aspects and clearly identify the strengths and performance highlights like client appreciation, key differentiators and initiatives etc.

• It should help in identifying the developmental needs (training, mentoring etc) on the basis of the gaps, based on the assessment against the desired superior performance level.

• Basis Performance management aspects like SMART Goals (Specific, measurable, attainable, realistic and timely) needs to be factored and assessment must be done again pre defined goals and role based evaluation parameters.

• It must cover relevant feedback and evaluation ratings from all stakeholders apart from the manager and next level reviewer to enable more holistic and 360* overview of the employees performance.

• Periodic review and update features to give a comprehensive assessment for the performance calendar, should not necessarily be open during a particular time during the evaluation window but allow periodic ratings to be weighted for the purpose of cumulative index score.

• It should help in identifying the readiness of the employee to perform a higher role and also capture the future career aspirations.