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Manual vs Automated performance management

Blogs Human Capital Management

Most organisations have some form of Employee Performance Management process.

We are often asked about the benefits of an automated Performance Management process, so here are some of the perks organisations can realize when moving from paper-based manual systems to an automated system.

Objective Setting – Visibility

We have often seen organisations where line management does not specify objectives for their staff when using manual Performance Management systems. At review time, management “make up” suitable objectives and review against these objectives. This means that staff are not being managed to desired outcomes for a substantial part of the year.

Only 2.4% of organisations reviewed their employees against objectivesObjective Quality through Visibility

Automated systems provide visibility for all managers. All Managers including the CEO can view objectives and ensure that they will achieve his/her strategy. This visibility ensures that the quality of Objectives improves. An objective that reads “Have a good year Jill” is no longer acceptable, once managers have visibility of objectives.

Frequency of reviewFrequency of Review

In an automated environment, reviews can be conducted more frequently (quarterly or biannually) according to changing organisational needs.

15% compound annual uptake growth forecasts in adopting Performance Management systemsFull-Time Performance Management

Full-Time Performance Management enables both managers and staff to record relevant performance information and attend a review meeting prepared with relevant information about achievements and areas for development.

Less Stress

Given that both managers and staff are able to document Performance issues throughout the year, both come to the review meeting better prepared.  Both the employee and the manager are fully prepared for a meaningful review and not stressed due to inadequate preparation or insufficient data.

95% uses manual appraisal systems without performance objectives or development plansProcess Familiarisation

The combination of the various features of an automated system reduces process questions and enable the HR department to work with line managers on maintaining a high-quality process rather than answering the same question several times over.

Remuneration Based on Real PerformanceRemuneration Based on Real Performance

It is not uncommon in large organisations for manual review forms to be lost or not received in time to pay performance bonuses. By contrast, automated systems allow HR to see real-time information as to where each review is up to. This prevents the “lost review” syndrome and ensures financial accuracy and fair and equitable distribution of team and individual bonuses.

Wasted ResourceWasted Resource

With an automated system, there is much less management of forms and paperwork and more resources dedicated to assisting line managers with qualitative issues. For example with setting objectives that are Specific, Measurable, Achievable, Realistic and Time-bound.

Summary

Automated systems make the process simpler, quicker and more effective and provide managers with the right tools to achieve their Business and Development Objectives.

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