Summary
Leading Midwest-based IT services firm, Paragon Development Systems (PDS) moved from a paper-based to a web-based employee performance management system. PDS made the move to the new system with the goal of streamlining administration, and more importantly, improving the quality and timeliness of performance appraisals.
Halogen eAppraisal™ has enabled PDS to:
- Eliminate time consuming administrative tasks so HR can focus on strategic issues;
- Reduce time spent by managers on the appraisal process and provide them with the information they need to complete accurate and relevant performance reviews;
- Improve the on-time completion rate from 30 to nearly 100 percent;
- Drive a performance-based culture with goal setting and execution on development plans.
Company Profile
Since 1986, PDS has been providing high-value IT services and solutions to medium and large sized organizations. As a technology services company, PDS architects, supplies, implements and manages clients' IT infrastructure. PDS services clients nationwide in four primary markets: healthcare; government/higher-education; corporate; and professional services. With a sustained history of consecutive annual revenue growth and annual sales exceeding $85 million for 2004, PDS continues to successfully evolve as a leading technology services company throughout the upper central Midwest.
Challenge
PDS was relying on a paper-based system for its bi-annual performance appraisal process, with HR circulating Word documents to managers.
"We really had mixed results in terms of completion rates and the paper-based system made it difficult to track the status of reviews," said Todd Radke, HR Director, PDS. "With our old system we had only a 30 percent on-time completion rate, which seriously impacted how employees and managers viewed appraisals."
In addition to the issue of on-time completion, PDS' managers found the entire process time consuming and onerous. "Finding an old review to compare progress against required the manager to contact me and for me to pull out printed copies from employee files. Managers would then have to sift through the documents to find what they were looking for," stated Radke.
PDS' appraisal process is based around SMART goals, and employee development plans are tied to the progress and completion of these goals, while the compensation system is based on performance along with a number of other factors such as corporate performance. "Our appraisal system was failing to deliver the information necessary to ensure employees were executing on goals or development plans, or to accurately assess performance for compensation purposes," explained Radke.
Solution
Radke recognized there was a gap between what the paper-based system provided and what employees, managers and HR needed from the appraisal process. He quickly determined that a web-based system that would be easy for his team to administer and not have to host on-site would be the best fit. Additionally, he wanted something that would grow with the company and enable them to build a culture of performance.
"Initially I identified four or five vendors from across the industry, and quickly reviewed all of the solutions as I wanted it in place for our upcoming process," said Radke. "Halogen was my final choice based on the flexibility of the solution. We were able to get the solution up and running in under a month and be ready for our next appraisal process."
PDS has been using a hosted version of Halogen eAppraisal, with all employees now using the system. The organization is now moving to multiple employee evaluation forms as managers are now looking for specialized forms to tailor appraisals even further. "The forms are very easy to create, which is one of the things I like most about Halogen. We can get the form we want and we don't have to conform to a cookie cutter form," explained Radke.
Results
Since rolling out Halogen eAppraisal, PDS has been able to dramatically improve the appraisal process and save time for all involved. The company's on-time completion rate has moved from 30 to nearly 100 percent. "I never had any visibility into the process with our old system. Now I can see what is holding things up and step in so the process stays on track," said Radke.
Radke surveys participants at the end of every process, and feedback has been overwhelmingly positive. Managers of larger groups within the company have been particularly enthusiastic as they are able to get reviews done quickly and save a lot of time in the process.
Goal setting is a major priority at PDS, and the web-based system offers a structured and consistent way to set and track goals and execute on development plans. Employees have a clearer picture of what is expected of them and valuable tools such a performance journals support goal completion on an ongoing basis. The end result is a greater focus on performance and accountability, which supports the creation of a high-performance culture at PDS.
On the administration side of the process, Radke is able to save a significant amount of tactical time, while having the data he needs to be more strategic. "The Halogen system has eliminated a lot of the administrative tasks so now I have time to think and act more strategically. Our business changes rapidly, and having the time and information to plan ahead is a major plus for our organization," explained Radke.
