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An efficient and effective performance management system for employees garners crucial benefits for organizations today – from greater workforce productivity and retaining top talent to increasing operational efficiencies and lowering HR costs. In fact, in this tough economy, global corporations are increasingly adopting on-demand software solutions to help step up their workforce optimization efforts. However, implementing the proper performance management system can sometimes prove to be a daunting task.
Following are the 12 biggest mistakes companies make when putting such a system into place, and guidelines on how your business can address these pitfalls, or avoid them altogether.
Mistake #1: Keep Managers in the Dark
Organizations that struggle with user adoption often have not taken the time to adequately communicate with their managers (the key users of the system) regarding the decisions that went into selecting the performance management system, nor have they adequately educated managers on the benefits they will derive from using the new system.
Fix: Constant communication and manager training is vital for success. Often, managers will perceive a new performance management process or system as yet another burden or another distraction - something happening “to them” that makes their life more difficult. Relentless communication and training that focuses on the benefits to the manager of using the system can help turn resistance and fear into acceptance and excitement.
Mistake #2: Introducing Too Much Change Too Quickly
Transforming the performance management process touches nearly every aspect of the organization and can take years to accomplish. Introducing too many changes quickly runs the risk of overwhelming managers and employees.
Fix: Focus efforts on a few key outcomes (i.e., reviews being completed on time, all employees receiving reviews) and show success in those areas. Enterprise Performance Management systems can be configured with hundreds of options and features that end up being unused because the value of using the feature is not established nor understood.
Mistake #3: Creating Overly Complex Performance Review Forms
Performance management systems have been designed with ease of use in mind. However, too often, HR is so enamored with all the bells and whistles available, they configure review forms with too many options which end up confusing (and losing) users.
Fix: Remember to keep it simple. Just because the online review form or system has the option, button or drop down menu, doesn’t mean you need to include it for everyone, in every circumstance. Approach system configuration with the specific end-user in mind and design the right process and options for the right user. Most enterprise performance management systems support multiple role-based workflows, forms, and processes.
Mistake #4: Underestimating Change Management
Configuring the software is only one part of the work the organization needs to do to successfully implement a new system. Understanding the change management issues for both managers and employees is just as important. When you ignore the “people issues,” users resist change because they aren’t realizing the benefits of changing their behavior.
Fix: Develop a solid communication and training plan for senior management, HR, managers, and employees. Clearly communicate the changes that are coming and explain why. Don’t be opposed to fielding questions, complaints, push-back and excuses for why things won’t work. This dialogue is critical to understanding the underlying issues that could be sabotaging the project and offer an opportunity for users to take ownership of the process, and avoid feeling as though this new way of doing things has been thrust upon them.
Mistake #5: Failing to Adequately Plan
No organization would attempt an enterprise-wide rollout of a performance management system... continued because of length -- full story available at: