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You're in good company…
Many businesses are currently operating paper or in house performance management and appraisal systems, when this is the status quo there can seem little reason to change. The system works OK, albeit there is a disproportionate emphasis on admin and paper-chasing but in recent times, reducing administration has not been seen as a compelling reason to invest. Add to this fact, the essential focus on the bottom line encouraging short term behaviours and focus, a move that is even slightly more strategic in terms of HR can be overlooked. Public sector with the changing political pressures and small and medium sized businesses who have been focusing on survival are particularly likely to suffer in this instance. This paper positions the potential ROI of effective performance management to help organisations recognise the business case for Performance Management in the cloud.
Managers are so busy personally chasing urgent results and responding to knee jerk change that they run the risk of forgetting to manage the performance of their people, this leaves people unfocused, disengaged and less productive than they could otherwise be. If the average manager has 6 direct reports and ensures that each one of these is performing to the optimum, this will always achieve more than even the most effective individual manager.
With increasing numbers of Generation Y & Z in the workplace, the expectation from the psychological contract is changing. These people expect to be valued, developed and given feedback. Combine lack of 1 to 1 time with their line manager with antiquated, paper-based, appraisals that are dusted off annually and then fi led through a process of compliance, it is hardly surprising that businesses are experiencing disengagement & talent drain.
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