Retain Your Top Talent Using Calibration in SAP Performance Management
- by Venki Krishnamoorthy, Independent SAP ERP HCM Functional Consultant
- March 26, 2009
Learn how to set up calibration in SAP Performance Management to rank your employees according to their performance.
HR generalists use calibration in SAP Performance Management to rank employees from a top performer to a bottom performer. In many organizations, the calibration tool is made available to a few HR generalists. It requires training, but is easy to use and is effective for appraising performance.
In this current economic climate, layoffs are an unfortunate occurrence. If you’re a company faced with downsizing, how can you be sure that you retain your top talent? How do you even know who is considered top talent? One process that organizations use is annual performance appraisals, which involve objective setting meetings with employees, 360-degree feedback processes, and identification of development needs.
Despite all the hard work, performance appraisals can be inaccurate. A top rating by one manager does not translate into a top rating among other managers. How can you be sure that your top talent really is the top, that you can help employees to become even better, or identify top performers with high potential for becoming managers? The answer is calibration.
In my implementation experience, I have noticed that calibration is often overlooked despite the fact that setting up calibration in SAP Performance Management is simple. No new authorizations are required (although you can set them up if you prefer). Anyone who has access to create an appraisal document also has access to perform the calibration for the team. Also, no special configuration or customization is required to set it up. The only exception is if you prefer to see the graphical output, in which case your Basis resource needs to configure the TCP/IP connection igs_rfc_dest_mbo (using transaction SM59). You can also have your calibrations made available as a manager portal (formerly called Manager Self-Service [MSS]) iView, which requires work by a portal resource.
I’ll share my experience in implementing calibration and the features that are available in SAP Performance Management, which is a module in SAP ERP HCM that you use for objective settings and appraisals. This article is based on SAP Performance Management in SAP ERP 6.0, enhancement package 3. Calibration works best if you have a fully working appraisal system in SAP ERP.
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