Jim Holincheck recently wrote about some findings from HR Executive’s survey of performance management practices. I’m not surprised that performance management is still on the rise – undoubtedly it will be on the rise for quite some time as new installations keep growing and eventually upgrades and replacements of systems will feed the vendors.
It’s not surprising that there is integration with compensation solutions. It is surprising how many have integrated with staffing and selection. ((Holincheck, Jim, June 20, 2006. “Interesting Findings from HR Executive Magazine’s Survey of Performance-Management Practices and Trends.” Retrieved from http://blogerp.typepad.com on July 3, 2006.))
I’m actually a bit more surprised at this than Jim is. Compensation is a bit harder to integrate with than staffing and selection. First of all, performance plans and compensation plans must be tied together. For example, if you have a bonus plan that states the employee must achieve XYZ factor, XYZ goals must be in the performance plan. Not only must the goals be coordinated, but the employee attributes as well. If the employee has had significant growth in ABC competency, that should go straight into their merit increase evaluation.
On the other hand, I’m not at all surprised that staffing and selection are driving some of the data in performance management. Recruiters routinely pick up data on competencies and skills through the selection process that is otherwise hard to get to. Since this type of information is just data and not process related like the compensation examples above, it should be relatively easy to share the data. So if the recruiting system flags an employee as having DEF skill, it’s a matter of a simple interface into the performance system. The one surprise that I do have here is that most organizations would not simply interface (or integrate) their staffing and selection to performance. Employee attributes found in the selection process would go into the core HRMS upon hire and then fed into the performance management system. I’m guessing this is what’s going on. If not, someone fill me in please.
So Jim is right. It’s not surprising that people are integrating their performance solutions to their comp solutions. It’s what I’d want to do, but in all honesty, I didn’t figure organizations were this far along.