Is your performance management system current and effective?

 

For many public agencies, the answer is no. In fact, public entities across the country are rushing to update or redesign their employee performance management systems as the pressure mounts to boost accountability and reward performance.

It's not just a public sector trend. A recent study by Human Capital Institute found that 58% of human resource professionals don't like their current performance management system. Yet, the trend to do away with the performance evaluation looks to be a passing fad. The HCI study found that only 2% of organizations have gotten rid of their performance management systems.

The benefits of a well-designed approach to employee performance management include enhanced levels of employee engagement, achievement of challenging organizational goals, and a higher return on your human capital investment.

But what makes a well-designed employee performance management system? Author Simon Sinek suggests you start with the question, "why?" By determining one primary outcome for your performance management efforts, you can develop an approach that yields powerful results.

The HCI study found that the most common reasons to have a performance management system are to:  

• Improve performance
• Align individual work with organizational goals
• Develop employees

In line with these three purposes, here are three trends I'm seeing with my clients: