Employee performance management systems have long been considered a foundation for successful human resource management in the business world. Yet, some critics argue that performance metrics are not always the most accurate way to measure human capital ROI.
An interesting study, conducted in the summer of 2012 by Ed Lawler, George Benson, and Michael McDermott at the University of Southern California – Center for Effective Organizations, pointed out that, “Performance management systems are effective when they are based on goals that are jointly set and are driven by an organization’s business strategy.” The study revealed that as few as 10 percent of the 100 organizations surveyed for this study had updated their performance management systems in the last five to ten years. That means, there was a clear breakdown between the performance of their employees and the ways in which they are evaluated. In fact, some of the performance measurements were so outdated and inaccurate, they could not be relied upon to give a true picture of success.
Performance management is only as good as the way in which it delivers results in the increased engagement and productivity of employees. When employees are carefully recruited during the selection and interview process, they will be one step closer to being able to productively contribute to the organization. Likewise, when these new hires are trained well and provided with all the tools they need to succeed, they can perform up to organizational expectations. Herein lies the real issue.
Over-reliance on any performance management system will not motivate or inspire any employee. In fact, it will likely have the exact opposite effect. Negative feedback can seem like a stab in the back to employees who work hard and sacrifice personal time every day. Performance systems that are overly generic lack meaning to employees. Perhaps the worst case scenario is a performance management system that is not delivered in a consistent or fair manner, but instead is a tool used by managers to avoid rewarding employees who have demonstrated a commitment to the business. Favoritism still exists and it’s damaging to any business.
Despite these challenges, performance review systems are not going away. Rather, they are being viewed as one of many different tools that HR departments can use to measure the success and growth capabilities of their staffers.
If you are looking for top talent to manage your work force or join your team, contact the staffing experts at Advance Staffing Solutions today!