Maximizing Performance: A Guide to Implementing an Effective Performance Management System


Performance management has room to improve

According to Gartner research, 52% of Chief Human Resource Officers (CHROs) believe they are not rewarding the right behaviour in employees, and only 32% of HR Business Partners believe performance management delivers what employees need to perform.

Because of this, in the last five years, 74% of organizations have significantly changed their performance management processes.

Investing in robust Performance Management System (PMS) software can significantly benefit your company’s talent. By keeping your team engaged, aligning employees with broader business objectives, and providing opportunities for skill development, you can achieve higher levels of alignment and job satisfaction throughout your organisation.

Employee Engagement and Performance:

Identifying talent is only the first step; ensuring continuous employee growth and satisfaction is equally important. Maintaining high employee morale is critical for productivity, as disengaged workers may seek opportunities elsewhere, leading to retention issues and potentially affecting customer relationships. To demonstrate the value placed on their contributions, organizations should focus on their existing teams. Implementing a performance management system that allows managers to set objectives, evaluate progress, and provide feedback creates a positive work environment and encourages coordinated efforts.

Performance Management KPIs and Measuring ROI:

To effectively measure performance, Key Result Areas (KRAs) should be individually assigned and expressed with weightage percentages that reflect the desired outcomes. By quantifying the level of accomplishment, organizations can generate final KRA scores, which can be recorded digitally and attached to relevant reviews for easy reference.

Tips for Setting and Measuring Goals:

  1. Set goals at the end of Q4 aligned with the company’s commercial objectives for the following year.
  2. Collaborate with employees to establish realistic goals, ensuring their buy-in and understanding of expectations. Provide necessary tools for goal achievement.
  3. Avoid setting an excessive number of goals to ensure efficient recording and analysis.
  4. Regularly review goals at least quarterly to monitor progress and take corrective actions promptly. Annual reviews may hinder real progress.
  5. Utilize Real-Time Reviews to track employee progress on their goals.
  6. Establish official channels to communicate praise and acknowledge goal completion.
  7. Structure compensation and remuneration increases in line with achieved targets.
  8. Leverage Performance Management Software, such as Real-Time Reviews, to streamline and standardize review processes, ensuring efficient progress tracking.

Effective Management of PMS:

To maximize the benefits of a PMS, it is crucial to ensure that managers are trained to use the system effectively. Keeping the system simple and providing training on giving and receiving feedback will facilitate engagement between managers and their teams. If rating systems are not suitable for your workforce, there are alternative ways to address key performance issues consistently through regular reviews. Real-Time Reviews software can facilitate conversations that drive overall performance improvements.

Six Key Questions for Performance Management Reviews:

  1. What are your objectives within the organization?
  2. How does your function align with the organization’s strategy?
  3. To what extent are you performing in line with the overall and individual strategies?
  4. What are your priorities for the upcoming period?
  5. Do you have the necessary resources to achieve your goals?
  6. What support do you require from your line manager to succeed?

INK IT Solutions can streamline your performance management processes and empower your workforce.

We at INK IT Solutions are a global IT consulting company that specialises in cutting-edge cloud and enterprise applications with a primary focus on SAP solutions. Established in 2014, we offer end-to-end customer and employee experiences through our SAP solutions, seamlessly integrating with other platforms.

As SAP Gold and a recognised expert (REX) partner, we deliver solutions that boost the customer and employee experience to new heights! Our consulting services for SAP Success (HXM) include Employee Central, Recruiting, Onboarding, Performance and Goals, Compensation, Succession Planning and Career Development, Learning, Analytics, and SAP Workzone.

Get in touch with our skilled team to discover a wide array of HR solutions and unlock the complete potential of automated processes. Say goodbye to manual workflows and embrace the efficiency and productivity gains of streamlined HR operations with INK IT Solutions.

INK IT Solutions


INK IT Solutions

An SAP partner company Designing, building, and implementing Cloud-based, hybrid, and on-premises SAP CX and HR/Payroll systems for large, complex multinational corporations. An Oracle partner company with PeopleSoft Centre of Excellence (CoE) with expertise in Human Capital Management across various industries.