Businesses spend a lot of money on fancy HR people and human capital management systems to develop meaningful performance and evolution structures. And for the most part, they don’t work. Employees reflect on activities that happened months ago and plan for tasks likely to never be completed, while managers and HR staff scramble to get it all together before the next evaluation phase begins. We’ve all been there and it’s time for this cycle of semi-effective performance “whatever” to end.
Human capital management in the cloud
Human capital management (HCM) is the statistically inclined, results minded, better looking cousin of human resources. And this chick means business. HCM views employees as assets of measurable value, capable of increasing in value as they learn over time. Now, the notion that people are investments and are most effective working under clearly defined, measured performance expectations is not new, but it is overdue to be popular.
When human capital management systems are in the cloud, set performance metrics are tracked and rated by staff and managers and stored in an online database ready for quick review or analysis anytime. Any HR specialist not presently using cloud-based HCM systems knows that pulling comments about a project or person in a matter of minutes would basically be the greatest thing ever.
Performance-based workplace is finally here! (sort of)
Carrying out effective human capital management means buying big, sexy (expensive) technologies, right? Maybe not. While major companies are making the transition to bulky, expensive HCM systems, smaller and medium-sized businesses can also benefit from a system that tracks key talent. And they can do it right now!
The good news: cloud-based human capital management technologies will one day move businesses away from sluggish HR processes and into a more productive, evidence based structure. Employees who sit yammering away and surfing the Internet all day will have to shape-up or ship-out. High performers, on the other hand, will finally have access to rich data that allows them to negotiate for pay raises, vacation time and promotions.
Shifting talent management away from files, folders, Excel documents and fillable forms also creates an opportunity to increase accountability among managers. Cloud-based performance management includes automated processes to ensure that leaders are in fact, leading. Managers can be held accountable for quantifiable completion of basic management tasks like setting goals and expectations, career and skills development and discussing feedback with employees. Bang! It’s a two way street, just like that.
Online cloud-based systems simplify processes and significantly reduce administrative time that would otherwise be spent amassing obscure (and outdated) information. Performance expectations and company goals are clearly set and documented in the cloud. Real time reports enable quick review of progress (or lack thereof) for each employee, manager and project.
So take comfort friends, for your days mired in obsolete performance reviews are nearly at an end.