HR Analytics and Performance Reviews

Everybody hates performance reviews. Managers can find it awkward, and general employees can get really defensive and hot under the collar. It’s difficult for a staff member to listen to a personal review they may feel is negative because it’s undertaken by someone who is not objective. In addition, the process is labour intensive and prone to error, and may not yield any insights valuable to strategic planning.

While the dreaded performance review interviews have been the most common method of rating employee performance, things are changing. This method is seen as outdated, and in many instances has had little positive effect on employees’ performance.

However, data analytics and ongoing feedback has proven more useful. Reviews should be honest, but also impersonal. And the best way to arrive at both these standards, is with an automated system that allows access to a wealth of data such as performance on goals and competencies, as well as development needs and more. The whole point of HR Analytics is to make managing staff performance easier, and there’s no better place to begin than with performance reviews.

These are your benefits:

  • When you are able to obtain real-time results, and compare results year over year, you are more easily able to monitor the effectiveness of training and continuous improvement.
  • The process reveals opportunities for learning and development initiatives, instituting succession plans, and sharing data seamlessly between these processes.
  • By evaluating scores elicited by managers, departments, and job roles, you can ensure managers are rating employee performances fairly and consistently by using the same set of standards. Employees feel more secure in the process, knowing that data can provide a fairer and more balanced estimation of achievements.
  • Workforce strengths and weaknesses are more easily determined, and the overall organisational strategy is optimised through an enhanced ability to allocate the right competencies to the right areas of your business, thus helping you source high potential employees for succession planning and leadership development.
  • Automated performance management gives a clear picture of exactly where individuals and teams are in relation to their goals, and if they are still on track to achieve these goals.
  • Evaluating performance scaled across the company, HR Analytics helps to analyse where training needs are most required, whether by location, department or division, helping the company to efficiently plan and schedule the necessary training.
  • Automated performance management uses data analytics and ongoing feedback to evaluate scores more quickly, as well as provide comparisons across departments. And the quicker you can institute changes or improvements, the better for your staff and your company.
  • Performance management data should drive strategic initiatives, because it will help to highlight competency gaps, as well as high and low-scoring employees across all levels, thus laying the map for more efficient performance-based learning and development.
  • Staff find the process fairer and more reasonable because they no longer feel that someone is sitting over them in judgement. There is less room for conflict and resentment. Also, for managers, it makes things easier when they are able to rate performance without feeling they may be applying any sense of bias to the process.
  • Automated performance management creates standardisation, objectivity and accuracy – a much more holistic, scientific and manageable process than the traditional review methods. Thus employee satisfaction and retention is supported, capturing real-time performance which in turn, offers more opportunity for improvement and growth.
  • Checks and reviews can be done more often instead of annually. They can actually be ongoing, so that finger is always on the pulse. And results can keep workers updated with tools and information to better perform their duties, as well as motivating them to become more effective.
  • The beauty of the process is that it allows managers to interact more effectively with staff, offering more time for personalised support and guidance, emphasizing the importance of human engagement and team effort.

The new value of Human Resources

At the HR Analytics Institute we believe there is a smarter way to get the best out of your staff and improve your business. Not only do we clearly see the potential to improve business through better relationships, but we are passionate about training HR practitioners to understand the value of their interface role between staff and management. Our practical courses will enable you to play a far greater role in strategic decision-making within the business as a whole.

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