Which parts of a performance management system most impact your organization?

There are six critical factors that influence how your performance management system will affect your organization. When implemented together, these six factors have been found to fairly and accurately measure employee contribution to business results and improve employees' perception of the organization's overall business value.

1. The system helps employees build their skills and competencies;

2. The system is applied consistently across the company;

3. The rating scale enables managers to accurately differentiate levels of performance during the annual reviews;

4. The system helps to build a high-performance culture;

5. The system provides useful data that is used for succession planning; and

6. The system provides useful data that drives leadership development initiatives.

SOURCE: OnPoint Consulting.