Analytics for Continuous Performance Management

  • by Aparna Samudrala, SAP SuccessFactors Consultant, Whitaker-Taylor, Inc.
  • October 23, 2017
Organizations can benefit from replacing the traditional annual performance review process with a continuous performance culture. Users of SAP SuccessFactors continuous performance management functionality can generate reports and tiles to monitor the use and effectiveness of the solution in the organization.
Learning Objectives

Reading this article, you will learn:

  • Why organizations need to create a culture of continuous performance evaluation
  • Various dimensions of the SAP SuccessFactors Continuous Performance Management
  • How to build Ad-Hoc/Table Reports and Dashboard Tiles to quantify the value of continuous performance
Key Concept

Annual performance reviews hold employees accountable for their past performance rather than improving the current performance and developing talent for the future. On the other hand, a continuous performance culture with frequent check-ins and real-time coaching feedback provides supervisors with more insight into employees’ goals, which helps build the human resources that organizations need today and in the near future. 

Performance appraisal, also known as a performance review or an employee evaluation, is a process by which an employee’s job performance and productivity are assessed and documented, typically by the employee’s supervisor. Traditionally, organizations carry out the performance evaluations at year end or on the employee’s service anniversary.

The purposes of performance evaluations are to provide useful feedback about employee performance, to recognize outstanding performance, to set future performance goals, and to contribute to professional development. Additionally, employers use this information to make important decisions in the organization, such as promotions, pay raises, and layoffs. However, despite all the best intentions, the 12-month performance management often fails to deliver what it intended because of the following reasons:

  • Managers and employees do not have periodic check-in meetings and the semi-annual or annual meetings often lack structure.
  • Achievements are never captured when they happen. Employees spend hours struggling to recall what they’ve achieved throughout the year and probably only remember half.
  • Employees are not exactly sure if their work aligns with the organization’s objectives and do not receive coaching advice or feedback when they need it to perform at their best.
  • The process is too rigid and hierarchical and follows a one-size-fits-all approach, which might not yield effective results for all employees.

However, the good news is the use of annual performance reviews in the workplace is dying out as companies are slowly transitioning to a culture of continuous performance management (CPM). CPM is a more fluid, personalized approach. It can be manager or employee driven.

The capabilities delivered by SAP SuccessFactors CPM allow employees to have more structured discussions, capture one-on-one discussions for future reference, and acknowledge achievements in real time. CPM helps managers and supervisors provide a balance of positive and negative feedback when employees need it most.

CPM is part of the SAP SuccessFactors Performance & Goals Management (PM/GM) module. A PM/GM license is required for CPM but the PM/GM module does not need to be configured to configure CPM. CPM configuration can be standalone without the PM/GM implementation.

Aparna Samudrala

Aparna Samudrala is a certified SAP SuccessFactors Consultant, focusing on the entire SAP SuccessFactors suite. Her experience includes implementations, upgrades, and support for different global clients. Aparna graduated from the Georgia State University with a Master’s degree in Information Systems specializing in Enterprise Resource Planning.

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