Employers in Asia Pacific are using performance management processes to drive broad organisational objectives, and believe that by and large, these objectives are being met. However, Willis Towers Watson’s 2015 Talent Management and Rewards Pulse Survey — Asia Pacific released today, also found that almost half (46%) of employers in Asia either said their performance management processes are ineffective, or are neutral.
This gap could be explained by what is measured, and what is not. The research, which reached out to employers to learn about their performance management processes, shows companies are largely concerned with tracking compliance, and not qualitative or business outcomes. Most employers measure success through metrics such as the percentage of managers who complete annual reviews on time (39%), or employees who complete the process on time (37%). Only one in five employers measure the quality of goals set. Almost one in three employers do not formally measure effectiveness.
“Employers seem to be at a crossroads when it comes to their performance management processes,” said Dhritiman Chakrabarti, Asia Pacific Leader for Rewards, Talent & Communication at Willis Towers Watson. “On the one hand, they sense change is needed, but on the other hand, they are not sure what specific form that change should take. It’s because of this uncertainty that a few have turned to extreme steps such as going completely ratingless, which makes news headlines and causes other employers to wonder uneasily if they should follow suit.”
The survey shows that 6% of employers have eliminated performance ratings/scores, and an additional 11% are considering doing so. 10% of organisations are considering scrapping performance management all together. Instead, employers are finding ways to improve their current system: For instance, three in five employers have already changed or are in the process of changing their focus to include performance achievement and future potential. Another three in five have introduced or are considering introducing new technology
Source: Asia Insurance Post