According to a survey on millennials conducted by Deloitte Consulting LLP and Bersin by Deloitte , millennials will comprise 75 percent of the global workforce by 2025. The same study has also observed that millennials –who are emerging as the leaders in technology and other industries—are hard to attract and retain. According to Barry Salzberg, CEO, DTTL: “To attract and retain talent, a business needs to show millennials that they are innovative and in tune with their world-view.”
The problem does not end here. For millennial workers who do manage to stay at a company, another common issue is their work performance. Charge it to lack of employee engagement, not fostering a cool-enough work environment, lack of an attractive benefits package, or other unknown causes, the attrition rates of the majority of the workers continue to increase, and there exists a shortage of talent qualified for future leadership roles. Most HR departments of small to medium-sized businesses are continuously looking for ways to improve work performance of all their employees.
Basically, reduced to an annual incentive where top performers get an increase in their salaries while their colleagues who did not perform as well get nothing, the performance management process in companies nowadays does not do much in terms of engagement, motivation, and retention of its employees. In simple terms, businesses are just not reaching their goals, and we need to understand what went wrong to be able to create new strategies that will deliver positive changes in future workforce performance.
1. A lack of sensitivity towards the employees ‘needs
- Organizations cannot choose to retain the top performers and then decide to remove the underperformers. Each employee needs to be trained equally for achieving success in their fields. With the advent of online job portals and social networks, it is now easier than ever to find new jobs.
- Today’s workers are not afraid to leave when they feel that they are not treated right or feel that they are not appreciated enough. The recent healthcare law does not recommend staying in a poor job just because of the health benefits it offers.
- Evaluation of an employee’s performance is more complex today because workers report to more than one supervisor. In such cases, assessment should come from many managers.
2. Unnecessary processes
- Having too many complexities in the workflow process can have significant consequences. Processes need to be simplified and reduced to what’s necessary. For instance, the hiring process may be shortened to three steps instead of nine steps upon close review of the system.
3. Obsolete practices
- Traditional HR practices such as annual performance reviews, management cascaded from the top down, yearly meetings and training are now considered obsolete due to its inefficiency and inability to drive engagement, motivation, and retention to employees. These outmoded practices have been found to bring conflicts rather than inspire performance improvements among employees.
4. Not fostering an environment for open sharing
- Workers today like to have transparency. These employees want to feel that they are part of the team and that they are free to share their insights and goals. According to studies, providing enterprise social tools to employees boosts innovation and increases their motivation.
The digital era has resulted in a paradigm shift in how to improve employee performance. If the focus of businesses in the past is to fuel competition and reward the top performers of the team, now companies are inching towards better alignment of everyone’s performance and motivating everyone to contribute towards meeting the company’s objectives.
In line with this new outlook, the performance management process is continually evolving to fit today’s needs. Regular feedback, coaching, and evaluation activities are highly supported by the managers, and frequent communication among departments are encouraged.
Consequently, bottom-up management styles are welcomed and steadily growing.
To facilitate the paradigm shift that calls for employee performance improvements, most businesses have turned to a software solution that reflects the reality of today’s digitally connected world. Enterprise Performance Management (EPM) is a solution designed to align an organization’s goals with its performance and finance aspects. EPM helps business managers to be aware of unexpected changes in the performance of achievement of their business goals and allow them to respond more quickly to these unwanted changes.
To address performance issues, companies have established reward programs that attract and retain skilled employees. However, adding these changes can disrupt the payroll process and may cause inconsistencies in wages, violation in regulations, and too much time spent on clerical functions. This is where EPM comes in. EPM can improve employee performance with its numerous benefits for businesses. Below are the top 5 ways to improve work performance with EPM:
1. Integrates time, labor and inputs
- Connecting an employee’s time, work hours, leave credits, and payroll information in a centralized management system enables the workers to look at the policies from anywhere even when they are not at the office and allows them to check the information even through their mobile devices so that they may verify that everything is calculated correctly.
2. Provides easy access to data and transparency
- Finance personnel are better equipped for doing tasks like the projection of financial data by having access to real-time dashboards provided by an EPM. With access to real-time data, HR managers, stakeholders, and executives may now track the financial data, employee information, and other details they need, making it easier for them to pull up a report.
3. Tracks absences
- A performance management system facilitates convenient tracking of absences and time off so that employees can log on to the system to check how much vacation days they have left and be able to plan accordingly. The EPM may be personalized based on the type of absence and in compliance with local and global policies. Additionally, absences are integrated with payroll and time management system so that workers can check their schedule and pay.
4. Manage expenses
- Now it’s much easier to avoid fraud, prevent misplacement of receipts, and request for a faster reimbursement with the use of mobile devices to take photos of expenses for submission of reports and quicker approval. EPM automates the expense reports for more efficient processing of expense management for the company.
5. Automates time tracking
- A study made by Aberdeen in 2013 said that organizations that have adopted an EPM solution have reduced labor costs by 31 percent, improved data accuracy by 36 percent and reduced HR’s time spent on workforce management by 39 percent. Performance management systems make work easy both for employees and managers by enabling employees to input their own time and attendance and allowing managers to approve time entries, apply overtime and modify time cards and calendars to suit each employee.
To address 21st-century trends in the digital economy, HR practices have taken on a more scientific and logical approach. Similarly, recruitment and retention should follow suit. Recruitment should be founded on the qualities of past successful candidates rather than hiring based on gut feel, and retention should make use of employee data and analytics to facilitate a deeper understanding of why people leave and stay in a company and what drives them to perform better.
It’s comforting to know that today’s technology does not require HR and Finance management personnel to be trained in data analysis. All businesses need to do is to upgrade their technology and get the right EPM solutions that can best improve the work performance of their employees.
Want to know more about EPM and how it can improve work performance? Click below to download the white paper on EPM for free.
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