Whatever model is used, performance management promotes a greater alignment between employee and organisational expectations.
Skills and behaviour dictionaries
Competency management and its levels of requirement is a cross-cutting functionality, but is of particular relevance in the performance management module.
Competencies (technical or behavioural) can then be associated with functions or functional bands/categories in order to determine the criteria by which employees should be evaluated.
Similarly, behaviours can be managed and used in the performance management process.
HR Goals and Objectives
Goals and objectives can be managed centrally through a dictionary of indicators to be used in performance management.
It is possible to define company, business unit or individual goals and objectives, each with a specific scale that is appropriate for the indicator under consideration.
Goals and Objectives then assume configurable weights, which will be used to determine the score for this performance management component.
Depending on the organisation's performance management model, it is possible to define which components and sub-components to consider, and their weight:
Criteria can be specific to a job, functional band/category or business unit, among multiple rule mixes, making the model adjustable to any reality.
Performance plan communication, at the beginning of the evaluation cycle, is an opportunity for management to meet with each of their employees and present criteria by which they will be evaluated.
If necessary, managers can adjust the criteria defined in each plan and any changes will be approved by HR.
If applicable, during performance management cycle it is possible to launch self-assessment tasks for the various employees.
Criteria to be considered can be the same as those used for their evaluation, but specific criteria to be considered in the self-evaluation can also be defined.
Formal performance evaluation remains a widely used tool, despite the importance of ongoing feedback or other current approaches to performance management.
Mid-term evaluations can be launched throughout the year, which may or may not have an impact on the final evaluation score.
A more informal method of performance monitoring is functionality that allows you to give feedback to an employee at any time.
Feedback can be private ( employees are informed and can see it) or confidential (only managers can access it).
This information is visible on employees' records, but also on the evaluation records as additional details.
You can define a reference curve for the expected distribution of valuation scores.
As evaluations are submitted, it is possible to compare this reference curve with current scores, making decision making easier or allowing identifying the need to review some evaluations.
Information can be filtered and it is possible to select a certain organization area or a specific function.
There is also a cycle step, assured by the HR team, where global validation of all performance evaluations is carried out, with the possibility of returning them to managers for further adjustments.
Once the qualification criteria for promotion proposals have been defined ( regarding current and/or future job) there is the chance to identify employees with potential to be promoted.
When a promotion suggestion is made, a potential evaluation is triggered, taking into consideration the job for which the employee is being proposed. This evaluation score is accounted for in the proposal qualification.
In turn, a promotion proposal approval process is started and then follows to the employee's hierarchical superior/manager.
As a result of performance evaluation and/or an approved promotion proposal, a salary review can be recommended.
Amounts can be simulated along with the impact on the employee's wage types and, once submitted, a hierarchical approval process follows.
As salary reviews are carried out, managers can view the impact on their team's s wage bill.