The Business Impact of Performance Management: Understanding the Ripple Effect
To help HR leaders understand the business impact of performance management, StepStone developed this insight paper based on current research from leading industry analysts, as well as best practice recommendations from StepStone consultants.
Online, July 26, 2010 (Newswire.com) - FOR IMMEDIATE RELEASE:
As businesses begin to emerge from the economic downturn that has been underway since the end of 2007, many are recognising and appreciating the benefits of effective performance management. During the recession, organisations with robust performance management processes have been able to make much-needed cuts with precision, whilst nurturing superior performance from their remaining employees. However, HR shouldn't expect business leaders to be 100% satisfied with this. If anything, senior executives want to see an even greater business impact from performance management practices.
This vision of what could be was best articulated by HR thought leader Dr. John Sullivan earlier this year when he wrote, "Superior talent management can have a higher impact on company success than any other single business function."1 And this vision isn't wishful thinking, it's fact.
Recent Bersin & Associates research validates the idea that HR can help drive revenue, with data that shows how organisations with high-quality employee development plans have twice as much revenue per employee as companies that do little or no development planning.2 Furthermore, Sullivan's ideas and Bersin's research dovetail with StepStone's real-world experience where one performance management client is 140% over budgeted revenue for 2008 and is projecting to be 200% over budgeted revenue for 2009.
"The key word in human resource functions today is alignment", says Matthew Parker, StepStone's Group Managing Director, Solutions. "HR leaders need to align individual goals with current and future business needs if they want to have a direct impact on the success of the business. And because performance management touches on so many other talent management initiatives, the ripple effect of effective performance management can be substantial."
Web Site: http://www.stepstonesolutions.com/solutions/hr-research-impact-tools.html
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