Can an Organization Keep its Best EmployeesJuly 11th, 2007 |
|
Normally we think of management control systems as something employees don’t like but that is not really the case. Employees like having clear goals. They are flattered if managers a level or two above them care about their goals. They are impressed if a company has an effective on-line system that helps their manager set goals give feedback and assign appropriate training. And most of all, if they genuinely are high performers they are pleased when that performance is recognized.
Unforunately, it’s common to hear people say, “I’ve been at my company for two years and I’ve never had a performance review.” This is a major cause of dissatisfaction. Employee performance and talent management ensures this doesn’t happen anymore. It also ensures the employee performance review process is fair and meaningful, as all transactions can easily be reviewed on-line and any exceptions flagged and dealt with quickly.
Most pay for performance systems do not, in practice, make large differentiations in pay between average and high performers. One reason for this is that no one has much confidence in the appraisals. Automated employee performance appraisals makes the process faster, more consistent and more reliable. It provides better and timelier data to management and HR. This creates the foundation for pay for performance that has been missing.
From a CEO’s perspective a smoothly run employee performance and talent management system is an important way of keeping talented employees happy. It supports the retention of employees, and in particular, the retention of the best employees. It is an effective way to ensure the intent of a reward system is realized in practice.
Tags: compensation management, employee performance appraisal, employee performance management, HR, talent managementRelated posts
Subscribe to this blog