{"id":88581,"date":"2023-01-31T08:12:28","date_gmt":"2023-01-31T16:12:28","guid":{"rendered":"https:\/\/www.betterworks.com\/?p=88581"},"modified":"2024-05-10T10:02:52","modified_gmt":"2024-05-10T17:02:52","slug":"hcms-get-perfomance-management-wrong","status":"publish","type":"post","link":"https:\/\/www.betterworks.com\/magazine\/hcms-get-perfomance-management-wrong\/","title":{"rendered":"Why HCMs Get Performance Management Wrong and What to Do About It"},"content":{"rendered":"\n<div class=\"wp-block-ht-block-toc is-style-contrasted htoc htoc--position-wide toc-list-style-plain\" data-htoc-state=\"closed\"><span class=\"htoc__title\"><span class=\"ht_toc_title\">Table of Contents<\/span><span class=\"htoc__toggle\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\"><g fill=\"#444\"><path d=\"M15 7H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><path d=\"M15 1H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1zM15 13H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><\/g><\/svg><\/span><\/span><div class=\"htoc__itemswrap\"><ul class=\"ht_toc_list\"><li class=\"\"><a href=\"#h-provide-employee-centric-experiences\">Provide employee-centric experiences<\/a><\/li><li class=\"\"><a href=\"#h-be-daily-systems\">Be daily systems<\/a><\/li><li class=\"\"><a href=\"#h-give-hr-the-flexibility-to-adapt-to-a-new-way-of-working\">Give HR the flexibility to adapt to a new way of working<\/a><\/li><\/ul><\/div><\/div>\n\n\n\n<p>Human capital management platforms like Workday, SuccessFactors, and Oracle provide a robust solution for HR professionals to run their operations \u2014 such as managing talent, benefits, recruiting, time and absence, and payroll \u2014 efficiently. But when it comes to inspiring, engaging, and cultivating employee performance, these multifunction systems don\u2019t cut it. In our <a href=\"https:\/\/report.betterworks.com\">2024 State of Performance Enablement study<\/a>, we found that HCMs are 70% more effective for performance management when they are integrated with a purpose-built performance management solution like Betterworks. Across every measure of performance, there is a 30-40% improvement in outcomes.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"580\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/Betterworks-Together-HRIS-Betterworks-Internal-2-1024x580.jpg\" alt=\"\" class=\"wp-image-106193\" srcset=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/Betterworks-Together-HRIS-Betterworks-Internal-2-1024x580.jpg 1024w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/Betterworks-Together-HRIS-Betterworks-Internal-2-980x555.jpg 980w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/Betterworks-Together-HRIS-Betterworks-Internal-2-480x272.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/figure>\n\n\n\n<p>In many cases, the same research showed that HCMs often perform little to no better than manual solutions, such as using spreadsheets, for performance management \u2014 and in a couple of cases, HCM\u2019s performed worse. Technology matters greatly.<\/p>\n\n\n\n<p>Our 2023 <a href=\"https:\/\/www.betterworks.com\/the-state-of-performance-enablement\/\">Annual State of Performance Enablement study<\/a> found that most employees are dissatisfied with the performance management capabilities embedded in these multifunction platforms.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"580\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/Betterworks-Together-HRIS-Betterworks-Internal-1024x580.jpg\" alt=\"\" class=\"wp-image-88602\" srcset=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/Betterworks-Together-HRIS-Betterworks-Internal-1024x580.jpg 1024w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/Betterworks-Together-HRIS-Betterworks-Internal-980x555.jpg 980w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/Betterworks-Together-HRIS-Betterworks-Internal-480x272.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>To serve their intended purpose, performance management systems need to do the following.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-provide-employee-centric-experiences\"><strong>Provide employee-centric experiences<\/strong><\/h2>\n\n\n\n<p>As HR systems of record, HCM applications are built with the core focus of centralizing HR information, consolidating functions, automating tasks, and providing people insights. User experience takes a backseat. It\u2019s no surprise that the performance management tools within these systems are often maligned by employees, managers, and HR alike.&nbsp;<\/p>\n\n\n\n<p>By contrast, <a href=\"https:\/\/www.betterworks.com\/magazine\/what-makes-betterworks-different-here-are-the-top-5-reasons\/\">Betterworks distinguishes itself<\/a> by shifting performance management from being compliance-driven to being people-centered, making the experience of work more rewarding.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>Looking at product usage, an average employee <strong>engages with the performance management module<\/strong> maybe a couple of times a year compared to <strong>at least once a week with Betterworks.<\/strong><\/p><\/blockquote><\/figure>\n\n\n<div class=\"lazyblock-recommended-content-ZC3j25 align  wp-block-lazyblock-recommended-content\"><div class=\"recommended-read-notice\">Recommended content<\/div> \n        <div class=\"recommended-read-box\">\n            <div class=\"recommended-read-image\" style=\"display:inherit;\">\n                <img decoding=\"async\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/10\/UKGBetterworksBrochure-Thumbnail-1.png\" alt=\"\">\n            <\/div>          \n            <div class=\"recommended-read-text\">\n              <div class=\"\" style=\"margin-top:px;font-size:24px;\"><p><a href=\"https:\/\/www.betterworks.com\/ukg-and-betterworks\">Extend the capabilities of your UKG HCM system with Betterworks.<\/a><\/p><\/div>\n                \n            <\/div>\n        <\/div><\/div>\n\n\n<p>Betterworks also helps build better managers. It provides managers with the tools to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Engage more deeply with employees with context-driven conversations and developmental interactions guided by best-in-class templates<\/li>\n\n\n\n<li>Develop their team members&#8217; talents and show a genuine investment in moving their careers forward by tying performance to upskilling opportunities<\/li>\n\n\n\n<li>Demonstrate fairness by making timely and fair data-driven talent decisions with team insights<\/li>\n\n\n\n<li>Listen to their team and resolve issues by creating action plans with just a click.   <\/li>\n<\/ul>\n\n\n\n<p>The various modules in Betterworks\u2019 performance enablement solution are highly interconnected. When an employee is having a conversation with their manager \u2014 their goals, training course progress, and the feedback and recognition they\u2019ve received \u2014 are all front-and-center so they can have focused, productive, and timely discussions. These practices reinforce one another and, together, create the habits, relationships, and collaboration that drive great performance.<\/p>\n\n\n<div class=\"lazyblock-recommended-content-1QEjTR align  wp-block-lazyblock-recommended-content\"><div class=\"recommended-read-notice\">Recommended content<\/div> \n        <div class=\"recommended-read-box\">\n            <div class=\"recommended-read-image\" style=\"display:inherit;\">\n                <img decoding=\"async\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/06\/SuccessFactorsBetterworks-Thumb-800x800-1.png\" alt=\"\">\n            <\/div>          \n            <div class=\"recommended-read-text\">\n              <div class=\"\" style=\"margin-top:px;font-size:24px;\"><p><a href=\"https:\/\/www.betterworks.com\/successfactors-and-betterworks\/\">Get superior performance management with Betterworks and SuccessFactors together. Learn how.<\/a><\/p><\/div>\n                \n            <\/div>\n        <\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-be-daily-systems\"><strong>Be daily systems<\/strong><\/h2>\n\n\n\n<p>When your software for goals, conversations, feedback, and recognition is kept totally separate, locked away in an HCM system that typically only gets accessed once or twice a year, not only are these practices not top of mind \u2014 you are, in essence, asking employees to develop their own systems for keeping track of their work, development plans, the feedback they\u2019d like to give or request, and the people they\u2019d like to thank and recognize. Of course, most people in the course of their regular busy work day aren&#8217;t going to do that. So performance processes are neglected, and annual conversations continue to be ineffective vehicles for assessing an entire year\u2019s worth of contributions.<\/p>\n\n\n\n<p>Betterworks takes performance management from a laborious and painful point-in-time activity to something employees can leverage effortlessly in their own flow of work. With cutting-edge integrations and AI, we bring conversations, feedback, and <a href=\"https:\/\/niftypm.com\/blog\/goal-tracking-apps\/\" target=\"_blank\" rel=\"noreferrer noopener\">goal tracking<\/a> into the applications that employees and managers are already using, every day. Microsoft Outlook, Teams, Gmail, Slack, and other tools become a place to quickly view and update goals, schedule conversations, give or receive feedback, and offer recognition.<\/p>\n\n\n<div class=\"lazyblock-recommended-content-5YeVH align  wp-block-lazyblock-recommended-content\"><div class=\"recommended-read-notice\">Recommended content<\/div> \n        <div class=\"recommended-read-box\">\n            <div class=\"recommended-read-image\" style=\"display:inherit;\">\n                <img decoding=\"async\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2022\/12\/WorkdayBetterworks-Thumb-800x800-1.png\" alt=\"\">\n            <\/div>          \n            <div class=\"recommended-read-text\">\n              <div class=\"\" style=\"margin-top:px;font-size:24px;\"><p><a href=\"https:\/\/www.betterworks.com\/workday-and-betterworks\/\">Uplevel your performance management with Betterworks and Workday together. Find out more.<\/a><\/p><\/div>\n                \n            <\/div>\n        <\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-give-hr-the-flexibility-to-adapt-to-a-new-way-of-working\"><strong>Give HR the flexibility to adapt to a new way of working<\/strong><\/h2>\n\n\n\n<p>Most work today happens in teams that are dynamic, agile, and cross-functional. Yet, in HCMs, performance management apps are deployed against the traditional vertical org chart, making them too rigid. They are also hinged on the traditional methods of performance management \u2014 such as annual reviews, annual goal setting, and infrequent check-ins \u2014 which are no longer successful.&nbsp;<\/p>\n\n\n\n<p>By contrast, Betterworks is built as a flexible system that allows for customization and shifts in priorities. For example, Betterworks:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Enables dynamic goal-setting \u2014 rather than fixed in a once-a-year exercise \u2014 and measures and tracks real-time execution insights around those goals<\/li>\n\n\n\n<li>Ensures an effortless process for managers to initiate conversations with their employees \u2014 setting priorities or need-based development plans jointly in a changing environment&nbsp;<\/li>\n\n\n\n<li>Provides the ability to set cross-functional, team-based goals&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Enabling these kinds of flexible capabilities in an HCM system can be a heavy lift \u2014 requiring non-trivial implementations and customizations.&nbsp;<\/p>\n\n\n\n<p>Organizations must put employee experience first when designing effective performance enablement. Use your HCM where it is strongest \u2014 as a system of record \u2014 and move mission-critical performance management to a dedicated, consumer-grade, best-in-class solution like Betterworks \u2014 that can better drive adoption and meet employees and managers in their flow of work.&nbsp;<\/p>\n\n\n\n<p>Visit our <a href=\"https:\/\/www.betterworks.com\/integrations\/\">integrations page<\/a> to learn more.<\/p>\n\n\n<div class=\"lazyblock-post-resource-cta-1WEKlz align  wp-block-lazyblock-post-resource-cta\"><div class=\"custom-post-resource-box\" style=\"background:url('https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/Betterworks-Together-HRIS-Betterworks-Horizontal-v2.jpg;') no-repeat center;background-color:;box-shadow: 0px 0px 18px -5px ;background-color:\">\n  <div class=\"custom-box-heading\" style=\"max-width:60%;\"><p style=\"color:#008AAB;font-size:30px\">Make Modern Performance Enablement a Reality<\/p><\/div>\n  <div class=\"custom-box-cta\" style=\"\"><a class=\"et_pb_button\" href=\"https:\/\/www.betterworks.com\/integrations\/\" style=\"color:#ffffff;background-color:#000000;\">Learn How<\/a><\/div>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>HCM platforms are appropriate for HR operations, but fail at performance management. Learn how a dedicated performance management solution empowers employees.<\/p>\n","protected":false},"author":139,"featured_media":88601,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[3307,3521],"tags":[],"featured_location":[],"industry":[],"class_list":["post-88581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-performance-management","category-technology"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.1 (Yoast SEO v23.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why HCMs get performance management wrong and what to do about it - Betterworks<\/title>\n<meta name=\"description\" content=\"HCM platforms are appropriate for HR operations but fail at performance management. 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