Is your performance management system failing? These could be the reasons

By Skizzle | May 27, 2021

In any organization, when it comes to HR management, there is one vital aspect that should be taken care of seriously and that is a performance management system. In most organizations, usually, HR managers are in charge of the performance management process.

performance management systems

You may have noticed that companies that aren’t reaching their full potential have one thing in common: inefficient, confusing, unhelpful, and disconnected performance management systems. Unused by their existing performance systems effectively, companies are wasting an unbelievable 30% of their potential. Moreover, just 14% of companies claim to be satisfied with their existing performance management system, which is critically low.

If it is done correctly, performance management will transform an enterprise and enhance its productivity, commitment, and morality. Initially, it is necessary to evaluate how and why your existing system is not producing results when you are considering the implementation of a performance management system or improvement in your organization.

Let’s explore a few of the major setbacks which would most likely dismantle your entire people management process.


Is your process structured?

One of the many reasons why performance management fails is that the process is not structured properly. It is not a one-time process and needs to be repeated more often. If you don’t have an advanced performance management structure, this is not achievable. Because the major objective for a business to have a performance management process is to increase its overall performance.

It is always great if you have a simple, intuitive, and friendly performance management system. It should be easy for your people to grips with new processes and performance management tools. Remember, processes should be adapted to suit the needs and culture of your organization – not the other way around.


Do your employees receive regular one-on-one?

Annual performance review is a thing of the past. When the conversations on performance are only an annual event, they are irrelevant and helpless. More vital than ever is communication and feedback. Therefore, forward-thinking organizations have started to introduce a regular type of performance management with performance discussions on a monthly or biweekly basis.

one-on-one meetings

Initially, managers may excuse themselves and argue that there is simply insufficient time to include one-on-one weekly meetings with their team. However, they tend to be short and quite productive in view of the informal nature and the frequency. They are believed to enhance employee involvement, encourage employees, and promote communication between managers and employees. This way enables employees to request feedback and discuss current difficulties to achieve their goals.


Are you providing a clear pathway to improvement?

While evaluation is a vital aspect of performance management systems, it should also set clear goals as to how improvements may be achieved. If you do not tell employees how to improve their work, it is obvious that the performance review system is failing.

employee appreciation

Most performance management methods do not persuade individuals and teams of the importance of their contribution to the organization. It is really significant that employees should believe that their contribution makes a difference and are critical for changing the game.


Are you documenting properly?

Each evaluation, feedback session, and all management notes should be stored and recorded by the performance management system. You can justify actions based on a performance review by saving all of this information.


Are you keeping up with evolving performance management trends?

All HR managers should know that performance management is a constantly developing field. New research is being constantly undertaken and, in the years, ahead of our understanding of psychology and what motivates employees will continue to improve. Flexibility is therefore a crucial aspect of performance management, as is familiarity with current performance management trends.


You’re not making use of modern technology?

We live in the digital age, and much of society relies significantly on technology to structure their lives and keep them organized. It is used in all aspects of our existence. There is no reason why our performance management systems should not be at the center of this.

A typical demand from most businesses is an integrated system that can address the increasing requirements not just in its performance management procedures but in its entire employee lifecycle. Cloud HCM providers have provided a comprehensive package with highly configurable systems and fast integrations.

Your Performance Management Process demands the best system like SkizzleHR. Try to avoid systems that are all hunky-dory at the beginning and are a complete failure in real business procedures. Evaluate thoroughly. Here is something you can evaluate your performance management system.


To Sum Up

If your team isn’t doing properly, check for these flaws with your performance management system. Because companies do not efficiently use their management systems, they waste roughly 30 percent of their performance potential. You may have to reassess your performance management system when you notice your employees are listless and unmotivated, or your profits plunge. In order to rebuild, it is vital to first examine how and why your system is failing to provide results.

If you want to know how SkizzleHR can help you with performance management in your organization, schedule a personalized demo! 

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