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5 Reasons Why Employee Management Strategy is Shifting

Talent Management

5 Reasons Why Employee Management Strategy is Shifting

October 05, 2016 Vanessa Hamilton

Performance reviews are typically annual events that are met with trepidation by managers and the employees they manage. In the traditional context, performance assessments measure the effectiveness of employees’ work habits, skills development and other factors that demonstrate how they measure up to predefined objectives and expectations. The results of these reviews may count as decision factors for promotions, raises or bonuses. Today’s knowledge economy demands relevant measures of employee performance especially in smaller companies going through the growth stage.

1. Traditional reviews do not measure up as performance management tools.

Emerging companies are in the stage where effective employee management is a crucial growth driver. Smaller companies are more limber than larger ones that have established and complex organizational structures. Small to medium size companies can adjust quickly to changes in operational processes, but they are also more vulnerable to organizational shakeups. As such, motivating the talent pool and ensuring that they continue to contribute to corporate goals should be a priority concern for managers. Performance management software that is designed to track employee skills and identify competencies should be part of a performance management system. The app should provide a convenient way to create customized checklists and metrics tailored to organizational goals.

2. Traditional reviews lack relevance.

Performance reviews fail on two counts when it comes to enhancing employee performance. First, managers are engaging in a one-sided exercise where they generate the assessments and deliver the results in one installment to employees, making it difficult for both employees and managers to react to the feedback effectively. Second, this system of information gathering removes the data from its context, hindering productive intervention. The information generated is not used to correlate factors that affect individual and team performance and motivation. HR reporting cannot always be completed in real time, but when it comes to monitoring employee performance, real time information could make a difference in taking advantage of growth opportunities. Performance software that continuously gathers information can identify problem areas that require quick action.

3. Traditional reviews do not do enough to improve employee performance and team relationships

In traditional practice, reviews are focused on the individual, and the role of the supervisor/manager in the review process is information gathering and inward-focused evaluation. These reviews identify individual strengths and weaknesses, but communicating the information to the parties concerned do not do much to foster better relationships between employees and managers because review discussions are often adversarial. Effective managers should put greater focus on tapping the talent in the employee pool and not finding fault with each individual, which is what traditional reviews often do. Use a management tool with a learning management system that gives employees easy access to content that is relevant to their jobs and supportive of their self-development efforts.

4. Performance reviews are not structured to account for team dynamics.

Managing people is an ongoing process rather than one that is defined by strategy or schedules. Likewise, an effective feedback system should be ongoing, timely and relevant, providing opportunities for candid conversation, corrective measures and closure. The feedback system should account for the effects of team dynamics on individual performance. Managers need a system that will help them analyze the factors that affect team performance and individual contributions to performance.

5. Without performance management software, reviews do not contribute to the big picture.

Preparing annual employee reviews take up time and resources, yet the results are not usually leveraged enough to create information-based talent management planning. This could be because traditional review templates focus on presenting a concise picture that lacks detailed information correlating an achievement to its contributing factors. The traditional review presents the metrics in a vacuum, with little regard for external and corollary factors that may be affecting performance.

Workforce reporting and analytics provided by management tools such as Cornerstone Growth Edition should be part of a data-dependent employee management strategy. Especially where smaller and newer organizations are concerned, defining performance evaluation goals and employee development initiatives according to fact-based metrics lead to more efficient performance management tactics while helping employees realize their full potential.

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About Vanessa Hamilton

Vanessa was Director of Sales and Marketing at NZX listed software company GeoOp for the last 2.5 years, prior to that one of the early employees at Xero as Senior Account Manager. Accountants division client manager at MYOB, Retail Channel Manager at MYOB. With over... more


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