Performance reviews are a critical part of the employee experience (EX). From the employee’s perspective, it’s an opportunity to obtain recognition and additional compensation. For organizations, it’s a chance to set expectations and deliver constructive feedback that leads to enhanced performance.
Despite the benefits, many organizations lack a formal performance review process—according to SHRM, more and more are forgoing the process. Your clients should rethink how they conduct performance reviews—it can lead to better EX and assist with talent acquisition and retention.
Here’s a guide to improving the process—and how an HCM solution can help.
Best practices for implementing:
- Communicate Regularly: To ensure there are no surprises during the annual review, managers should keep the lines of communication open throughout the year—especially during one-on-one meetings.
- Set Clear Expectations: As part of the formal process, organizations need to set and define clear metrics to rate performance. Most use a one (unsatisfactory) to five (exceptional) system. Ultimately, employees need to understand how the metrics are used.
- Establish Goals: Creating both short and long-term goals is an easy way to revisit an employee’s performance for the next performance review. These goals can be revisited throughout the year to keep talent on track. Specifically, your clients should utilize SMART goals that are specific, measurable, achievable, relevant and time-bound.
Your clients are increasingly interested in upgrading their performance review process—34% of HR leaders plan on investing in it this year.
Here are the benefits of HCM technology for your clients:
Custom Rating Capability: The right HCM allows your clients to create the rating system that best fits their organization. They can have one section that’s based on a five-point scale, while other sections feature open-ended questions or simple yes or no prompts.
Automation: Manual processes open the door for potential miscalculations—which will result in a very unhappy employee. With an HCM solution, annual ratings can be automatically calculated while scheduled reminders make it easy for managers to keep track. This makes sure that the math is correct and that nothing falls through the cracks throughout the year.
Efficiency and Consistency: Without an HCM solution, performance reviews can easily become drawn-out affairs, with needless back and forth between manager and employee eating up valuable time. With an HCM solution, your clients can ensure that the process is running uniformly throughout the organization.
Goal visibility: With the right solution, employees can access their goals and performance progress at any time—without having to wait for the big day. Additionally, your clients can seamlessly allow for multiple individuals, including supervisors and managers, to complete the review.
As an isolved Network partner, you can provide your clients with access to isolved People Cloud, enabling them to take their HR function to new heights. Learn more about our solution and how it can help your customers improve their processes, like performance reviews.