Key Benefits of Using Performance Management
Alignment to Strategy
In Research conducted by Professor Nankervis of Curtin University of Technology, he found that only 2.5% of Australian Organisations set fixed objectives as part of Performance Management plans. This compares with up to 90% for some of Australia's immediate neighbours. In a recent survey by PeopleStreme, it was found that 72% of employees had only ever had a review conducted in relation to their position description and not tied to organisational goals. Performance Management allows organisational objectives to be set and reviewed from the top to the bottom of the organisational structure.
Presentation to NSW Police Executive Leadership Team
Photo : NSW Police Commissioner Andrew Scipione with Lyle Potgieter, PMIA President and Anna Kotsopoulos, PMIA General Manager.
Performance Management helps to minimise cost of unwanted employee turnover by addressing the majority of reasons employees give for deciding to resign. In no particular order, the reasons in almost every survey are :
Employee initiated turnover (otherwise called regrettable
turnover) represents a huge, unobserved and generally unquantified
to most organisations. Our research indicates that staff turnover costs
an organisation between $15,000 to $30,000 per person while management
turnover ranges between $60,000 and $125,000 per head. The mean costs
are nearer to the bottom ends of these ranges. However, this still
an organisation with turnover of 100 people per year has a generally
unmanaged cost item of $2 Million per year.
What Features are in the World’s Best PM Systems?
No Manual Forms or Intranet Forms
Automation is an absolutely critical factor in implementing successful Performance Management systems. Manual systems (including those which are based on intranet "forms") tend to fail within 18 months on average. Failure is generally identified by a compliance level of 90% or less.
Manual systems fail because :
Performance Management consulting and/or software is a set of modules which can be customised to fit each organisations existing processes.
A direct feed from the existing payroll system is far more cost effective than perpetually rekeying changes to employee details i.e. adds, moves and changes.
This allows the immediate annotation of employee achievements and required development areas throughout the year and before the next review comes around. This makes the review a high content discussion.
Performance Management solutions should be able to be deployed in organisations which have anywhere from under ten to several hundred thousand staff. This is usually possible by deploying solutions on the internal intranet for organisations with 300 staff or more and by using an application service provider for smaller organisations.
An established track record in Fortune 500 and Australian Blue Chip organisations.
Pricing should be far below that of enterprise management solutions or ERP products.
Offices in the major Australian cities. A reasonable level of capitalisation (over $0.5M), Professional Indemnity insurance of $5M or more.
best providers are those which do nothing else but specialise in
Performance Management Systems. Many payroll system and ERP providers
have performance modules but do not provide a full service including
audit, design, implementation, Help Desk and training of the HR administrators
and most importantly the line managers.
Presentation Speakers Available
The PMIA is available to speak at your next conference to demonstrate how you can use Performance Management as a tool to help guide your organisation towards its goals. To discuss your requirements, please send an email with your name and contact details to firstname.lastname@example.org.