How can SuccessFactors Performance Management help you outperform your competitors?
Most businesses recognise the importance of measuring and tracking employee performance, but many aren’t sure how to do this accurately or fail to use the results to their full advantage when they do.
While it’s good for businesses to know how well their individual employees, teams or departments are performing, it’s perhaps just as important that this performance is recognised formally. This is where SuccessFactors comes in.
What is performance management?
Real performance management should encompass the entire performance process, from setting up goals to using performance results effectively. The aim of performance management should be to engage and motivate employees first and foremost, both of which should result in changes that benefit the business and inevitably outperform competitors.
The best performance management systems are the ones that establish a true pay-for-performance culture. With individual and team goals set in line with business goals, performance can be measured and rewarded accordingly. In this way performance management can improve morale, create loyalty and increase overall productivity, all of which drive business performance above and beyond the competition.
The Performance Management Process
There are various ways that a performance management process can be set up but most successful ones follow the same basic structure. A system like SuccessFactors provides the tools and features needed to:
- Define and communicate goals for individuals, teams, departments and the company.
- Monitor performance and progress against goals and provide additional coaching.
- Appraise individual, team and department performance with in depth feedback and formal documentation.
- Reward and compensate when goals are achieved and exceeded or develop a new performance plan for missed targets.
Setting Goals
All individual and team goals should be set in line the overall company goals and designed to drive the corporate strategy. To do this, managers need to work closely with each other and employees to ensure all goals support the business plan.
All goals should be SMART:
- Specific - employees are clear about what their targets are, when they’re expect to meet them and how to achieve them.
- Measurable - performance can be measured accurately and used to motivate employees along the way with the use of milestones.
- Achievable – goals need to meet the business targets and require some stretch from employees but still be within the reach of average employee capability.
- Relevant – needs to be in line with the key aspects of the corporate strategy to drive overall business performance and competitiveness.
- Timely – all goals should have a time frame so that employees are more motivated by a sense of urgency.
With SuccessFactors Performance & Goals it’s easy to set goals and make sure they’re SMART with the Goal Library of more than 500 SMART goals ready to go. Managers can also set cascading goals to see individual, team and company-wide progress to ensure that they’re always in line with the ‘bigger picture’.
Tracking Performance
Monitoring performance is vital for several reasons.
Employees should be able to have a clear view of their performance, so they can be motivated by their progress or adjust their work if necessary. Managers equally need to be able to see employee performance to reward employees along the way if targets are being exceeded, or to provide additional coaching and resources if it looks like goals are in danger of being missed.
The more often progress is revisited by individuals, teams and departments, the more focused everyone is on their goals. Problems can be identified and dealt with quickly while good performance can be examined to see if the results can be replicated elsewhere or improved upon further.
Having performance progress all in one place in an easily accessible cloud environment gives everyone a clear view of performance and goals, as well as provides a platform for employees and managers to communicate regularly.
Feedback and Appraisal
It's vital that employees continue to grow for their own benefit and the benefit of the company, and many employees are much more loyal to those companies that invest in nurturing talent from within. Appraisals and detailed feedback on performance is vital for encouraging this growth, whether it’s recognising what went well or developing a plan to bridge the performance gaps.
To do this the appraisal process should include observing performance, listening to employee feedback, giving constructive comments, recognising good performance and discussing plans to fix any weaknesses. With a performance management solution like SuccessFactors, this is achieved with the range of communication features accessible by all parties on any device and wherever they are. Additionally, writing assistants and coaching tools help managers provide concise and considerate feedback with constructive comments.
Rewards and Compensation
Rewarding performance is the key to motivation in the workplace. Pay-for-performance compensation can help to keep your top talent, nurture rising stars and encourage performance that exceeds business goals. Rewards can come in various forms including pay rises, bonuses, flexible schedule, more holiday hours, gifts and company wide recognition. These can be awarded on an individual basis as well as to teams and departments to encourage good collaboration and team work.
With a compensation solution tied in with your performance management you can define award categories and align them with specific behaviours and achievements that you want to encourage in the business. Different reward levels can be set depending on the level of performance and contribution, and for individuals as well as teams.
Stay Competitive with Performance Management
A solution like SuccessFactors is vital for successful performance management. Accurate performance tracking across the whole company alongside regular and constructive feedback and development will help encourage underperforming employees to step-up while rising stars and top talent are encouraged to grow and stay. This type of detailed performance management results in motivated and more productive employees which are vital to competitive success.
If you want to know more about SuccessFactors Performance & Goals or SuccessFactors Compensation contact one of our team today to find out more.