Organizations have long used performance metrics to measure the progress (and ROI) of employee training and to get a sense of how well employees are performing. Some feel that performance management activities are themselves hindrances to performance and advocate the abolishment of performance management activities altogether. As with most other issues, there is rarely a black and white distinction and the answer can be found somewhere in the middle. Both positions are of course correct. Modern employee performance management tactics have changed. This article will investigate the roots of this important change and document them, enabling you to make better decisions about how to deploy performance management solutions like software and strategies.
Organizations are relying on a host of performance management solutions to improve their competitiveness and in truth some companies are being hurt by this activity. But the reason is not what you might think. Like any tool, if it is used incorrectly then negative results will occur. This is exactly the case here with some implementations of otherwise modern performance management practices. It has far less to do with the software solutions and more to do with leadership at the organization.
A relatively old and trusted concept, the application of metrics to quantify employee performance is an effective activity for developing a clear picture of current performance levels, in addition to enhancing performance in the workplace. That’s because once they are held directly accountable for their output levels, with proper leadership and guidance, employees are statistically likelier to produce better results.
But how, exactly, are metrics to be used? Interestingly, quantifying the results of employees’ efforts comes from a system that everybody is quite familiar with – academic grade. In addition to grades, the scorecard has come into prominence in the human resources sector only after it was proven to be effective in providing accurate numbers for company performance.
Now, in the workplace, metrics evaluation tools that have typically assigned to the accounting and overall management endeavors have had great success in their recent application to human resources departments.
By utilizing both rating and ranking systems, a human resources team can determine the metrics of employee performance through simple arithmetic. The tricky part of the process begins when deciding what, exactly to begin measuring.
That’s why the scorecard system includes a wide variety of features that extend far beyond the over-simplified input-output model. Indeed, when considering that human resources deals with the business of people, the equation naturally becomes a bit more complex.
So while one of the key measurements in the metrics evaluation process includes productivity as a function of training – for example, how much return on investment one can get from an employee after 6 months of training – there are other factors to consider. One of these happens to involve the pace at which an employee acquires the knowledge and skills necessary for the workplace. If an employee with no prior industry experience can quickly excel to the level of a five-year veteran, then such a metric should not be overlooked.
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