Before I turn to the topic of linking performance management and compensation (June´s topic of interest), I think I will wrap up with a summary from my educational webcast for May. I tried to build more interaction into this webcast and it worked in terms of generating a great deal of questions, however, with the use of a V chart and limited time, I didn´t get to address all of these questions. As a result, this final blog entry for May will provide a summary of all the questions submitted and brief answers to the questions. <br> <p> </p>
<p>Before I turn to the topic of linking performance management and compensation (June´s topic of interest), I think I will wrap up with a summary from my educational webcast for May. I tried to build more interaction into this webcast and it worked in terms of generating a great deal of questions, however, with the use of a V chart and limited time, I didn´t get to address all of these questions. As a result, this final blog entry for May will provide a summary of all the questions submitted and brief answers to the questions. I do however, encourage you to submit any comments/additional points or for that matter more questions related to these questions. My hopes were to give attendees of the webcast an opportunity to provide suggestions to each other during the webcast, but it didn´t exactly work out as planned. As a result I am hoping you will take advantage of this opportunity now. </p>
<p> </p>
<p><b>Q:</b> How can a PM system be integrated with an LMS system for development (gap) training and growth development? How do you tie performance management into learning management and career planning with personal development?</p>
<p><b>A:</b> Many organizations are utilizing competencies to help solidify the link between performance management and learning management. Clarification of performance expectations for job roles helps us evaluate performance. Once expectations are clarified, and performance is tracked regularly, skill gaps can be identified. Information related to, for example, the number of employees on a waiting list for a particular learning opportunity, number of employees requiring skill development in a particular area, employees identifying particular areas to be addressed in development plans or upcoming expiring certifications requiring updating can help us determine and justify training and learning and development spending. Reporting options available now allow us to view this information in ways previously not possible. Sharing of this information between systems and processes supports strategic decision making. </p>
<p>When it comes to career planning and personal development, visibility into the performance expectations for positions for advancement gives employees more control over where they may like to improve their skills. </p>
<p> </p>
<p><b>Q:</b> How are workflow processes for approvals and merit recommendations forwarded to payroll?</p>
<p><b>A:</b> A PM system can duplicate your current workflow, ensuring that forms are automatically routed to ensure required approvals, etc. Some can generate a score that can support a compensation decision; others are fully integrated with compensation modules.</p>
<p> </p>
<p><b>Q:</b> Archival, confidentiality.</p>
<p><b>A:</b> With technology-based systems, access to information is provided using role-based security access, therefore, individuals only have access to the information that they require to complete their job. This access is configurable by the individual assigned as the system administrator. </p>
<p> </p>
<p><b>Q:</b> What is the difference between "competency management" and "performance management"? Following that, what are the other elements of the whole online process?</p>
<p><b>A:</b> Performance management involves all the steps taken and processes put in place to support employee performance. This includes: performance planning, goal alignment, goal setting and tracking, development planning, the ongoing discussion and conversation between the manager and employee, appraisal preparation and delivery (performance appraisal meeting) and any other steps that support these processes. Organizations may or may not choose to identify competencies, therefore, may or may not have competency management processes. Competency management refers to processes that support the use and identification of competencies in a number of Human Capital Management processes. Some performance management vendors have expertise in competency management; some provide competency dictionaries or may work with vendors with extensive dictionaries and expertise in competency management. For additional information on competency management, please see: Archived Webcast: Making the move to identify competencies: How to go about selecting a vendor.</p>
<p> </p>
<p> </p>
<p>Q: Vendor selection tips -industry trends (acquisition activity, etc.)</p>
<p>A: Initial steps include, clarifying what you wish to accomplish as a result of the purchase of a PM system and clarify your needs. For detailed information on how to go about selecting a PM vendor, please see the whitepaper: Selecting a Performance Management System available on the HR.com website.</p>
<p> </p>
<p>Q: Managing competencies security goal alignment</p>
<p>A: As we have addressed security and competencies in other questions, I will address goal alignment here. PM systems provide visibility into organizational and departmental goals. Individuals can view goals of those above them or in different departments which helps further goal alignment during goal setting. In addition, goals can be assigned to appropriate departments or individuals, ensuring that they become a part of appropriate goals plans. </p>
<p> </p>
<p>Q: What are the most important things to consider to ensure a smooth transition from a paper-based system to an automated system?</p>
<p>A: Upper level support, change management including: communication and involvement. During the selection process, proper communication with representatives of relevant departments within the organization will ensure that the system selected can provide the functionality required. Involvement in the process will help support buy in, allow employees to have questions addressed and have their suggestions and requirements considered. It is essential that communication highlights the benefits of use of the system, not just organization wide, but also at an individual level - how will this make my life/job easier? The communication and change management effort needs to begin early and be ongoing. In addition, sound planning and training, as always, will support a successful implementation. </p>
<p> </p>
<p>Q: How does PM integrate with HRIS systems?</p>
<p>A: Usually this information is shared between the systems daily. </p>
<p> </p>
<p>Q: How do you calculate ROI for this type of product?</p>
<p>A: Many calculate ROI based upon efficiency improvements; however, there are additional benefits that come about related to tighter goal alignment, accountability and focus. These are harder to measure, but the benefits are significant. </p>
<p> </p>
<p>Q: How do you get managers to fairly assign wage increases based on performance?</p>
<p>A: The basis of a well functioning pay for performance scenario is sound performance management practices. As consistency of process is supported and managers in all departments are assessing performance based upon similar criteria, compensation decisions can be made with confidence. Many organizations go through a calibration process in which managers discuss how and why they have given certain performance ratings for individuals to ensure standards are consistent across the organization. </p>
<p> </p>
<p>Q: -How do you get employee buy-in to it? How do you NOT overburden Managers of large Departments? My biggest concern is how we ensure that Managers and staff get the most out of the system - i.e. utilize it appropriately. This will be a huge culture shift for us</p>
<p> </p>
<p>A: When communicating the decision to move to a technology-based system, it is essential that the benefits and reasons behind the decision are communicated. Managers and employees need to understand how the system will not only benefit the organization as a whole, but how it will make their job and day-to-day tasks easier. Communication, however, around what the system will accomplish and what it cannot is important. For example, users must understand that full benefits will be gained through the use of the system when it is supported by sound performance management practices which include regular ongoing discussion between managers and employees. As managers begin to use the system, they will help further the message that the move to a PM system will increase the efficiency of this process, and thus will not be an extra burden. </p>
<p> </p>
<p>Q: How could it maximize our benefits?</p>
<p>What are the advantages of an online system?</p>
<p>A: Increased efficiency (i.e.: workflow, on time completion, accessible support) </p>
<p>- Goals and organizational objectives visible = improved alignment</p>
<p>- Maintain and track accountability</p>
<p>- Ensure appraisals are related to day-to-day activities and contain no surprises</p>
<p>- Increased consistency</p>
<p>- More accurately link training requirements and rewards to performance</p>
<p>- Monitor progress in real time</p>
<p>- Increased employee satisfaction</p>
<p> </p>
<p>Q: What are some pitfalls of technology-based systems?</p>
<p>A: Make sure your basic HRIS data is clean (i.e.: who reports to whom, position held, etc.)</p>
<ul type="disc">
<li>Make process improvements, if necessary, before automating</li>
<li>Always allow for change management</li>
<li>Gather input from all appropriate stakeholders re: requirements</li>
<li>Take the process step by step</li>
<li>Keep long term needs in mind</li>
<li>Support use of the system with necessary performance management training (i.e.: handling the performance appraisal meeting, writing appraisals)</li>
<li>Evaluate the process - ongoing</li>
</ul>
<p> </p>
<p> </p>
<p>Q: How can we automate the system? How can we make it as easy to use as possible? Is it possible for everything to be input online?</p>
<p>A: When it comes to performance management, PM systems allow for online appraisal completion, but they also accommodate online goal setting & tracking, performance logs, development planning, succession planning, competency management and provide reporting options. </p>
<p> </p>
<p>Q: How do you populate the competencies when you are starting with a blank slate? How do you align them to job responsibilities?</p>
<p>A: There are a number of excellent books that discuss how to identify and group competencies including:</p>
<p>Creating a Culture of Competence by Michael Zwell and</p>
<p>Competence at Work: Models for Superior Performance by Lyle M. Spencer and Signe M. Spencer</p>
<p>However, a competency dictionary will give you a jump start on this process. Competency dictionaries contain a number of competencies that have been modified and improved upon based on years of use. Some vendors even offer industry specific dictionaries like healthcare. Vendors will work with you to select and group competencies appropriate for your organization. </p>
<p> </p>
<p>Q: How would you best handle those managers and employees who have little computer experience? Any insights as to how to incorporate an old paper system into a PM system?</p>
<p>A: Access to technology and training is key, as is communication of the benefits of use of a PM system. Most PM systems require little training when it comes to use of the system as most are very user friendly. Sharing success stories and allowing early users to share experiences with others can help. It is important to assess whether your current process needs adjustment prior to automation, as you do not want to simply automate a bad process, however, some organizations have chosen to make as few changes to the process as possible to enhance user acceptance and increase comfortability. </p>
<p> </p>
<p>Q: What observations can you share about transforming PM systems to best fit a manager/employee self-service driven one?</p>
<p>A: Introducing an automated PM system in an organization in which self-service is widely used and accepted is a natural fit. A PM system gives employees and managers access to their own performance information and allows more individual control and responsibility over this information. For example, employees can record their own accomplishments when they occur, goal progress can be monitored online by both manager and employee and employees can easily access manager´s comments in a performance log that the manager has chosen to mark as "shared."</p>
<p> </p>
<p>Q: How can you eliminate any subjectivity in performance management, allowing for objective reasoning only?</p>
<p>A: Any work to clarify performance ratings and expectations will make performance assessment more objective. Expectations can be clarified using behavioral indicators, competencies or through the provision of a descriptor linked to each ranking i.e.: a four indicates that "an individual demonstrates this expectation on a consistent basis without need for supervision", for example. One of the initial steps to building in objectivity includes using the SMART format when writing goals. </p>
<p> </p>
<p>Q: What is the average cost of a PM system?</p>
<p>A: Prices vary depending upon your final selection, but pricing can be determined by module, by user, or a combination of both and depends upon the delivery option selected, complexity of the system and level of configurability required. Some information to consider:</p>
<p> </p>
<p>- ASP pricing all inclusive- upgrades included (although some have discretion around this)</p>
<p>- Set up fee with annual license fee - includes hosting, maintenance tech support - based on users and # of modules</p>
<p>- Enterprise local install - requires annual maintenance fee to cover product upgrade and support</p>
<p>- Also available, Fully administered or Administration handled by purchaser</p>
<p>- Price ranges can begin at $30 a seat</p>
<p>- Initial configuration - one time fee - can be in the range of $15-$25,000</p>
<p> </p>
<p> </p>
<p>Q: All top ERP vendors have Performance solutions - the benefit to an ERP vendor vs. a Niche vendor is that the solution is totally integrated. You should not under estimate the effort to build integration back to your HCM solution.</p>
<p>A: An integrated system allows workflow to be configured between processes, information to be shared back and forth automatically (i.e.: completion of a course in LMS - notification automatically sent to PM system) and ensures data can be viewed from all relevant modules. It is important to be sure that the system provides the functionality to meet your requirements as closely as possible; therefore, organizations may choose to use a number of systems and integrate them, as appropriate or prefer a fully integrated system. This really ties back into doing sound research related to what your requirements are, what your future needs will be and what the existing systems can and cannot provide. </p>
<p> </p>
<p>Q: What are your thoughts on HR departments doing random employee feedback meetings? For example, meeting with an employee to ask his/her thoughts on working for the company, things we do right, things we could improve on, etc.</p>
<p>A: Communication done in the spirit of gathering opinions and working towards learning and performance improvement to me always sounds like a good idea, although I would want to make sure that all employees do have the opportunity to give feedback. When it comes to performance management, it is important after the implementation of a new system to continue to communicate with employees to determine if any changes could help improve the process going forward. </p>
<p> </p>
<p>Q: Who are industry leaders for PM systems?</p>
<p>A: There are many vendors that offer performance management systems. Some offer them as part of an overall suite; others offer performance management modules that can integrate with other systems and other offer "mini suites" which support a few or many talent management processes. </p>
<p> </p>
<p> </p>
