Understand why companies that support meritocracy are successful with this performance evaluation method.
The current salary structure doesn't offer many incentives to improve worker performance. The lack of metrics and systems promotes egalitarianism, discouraging individual efforts. There is a risk of not recognizing the most competent employees and turning a blind eye to incompetent ones. Salary increases are usually based on length of service. This model is outdated and the need to reward good performance is increasingly urgent.
The solution has been automated performance evaluation systems . But why do companies buy these systems? What benefits do they bring?
Read more: Meritocracy - how to improve individual performance?
See 7 reasons why companies succeed with systems that support the automated strategic remuneration model:
-
Quick decision making
By having all the information on employee performance in one system, the manager is able to have immediate knowledge of problems, speeding up decision-making and thus achieving greater productivity.
-
Continuous development - Coach
With an evaluation model suggested by the system, it is possible for the immediate manager to recommend a specific development plan to help an employee improve their performance in the job.
The system then serves as a basis for fault-finding, guidance and employee appreciation, as well as a means of building high-performance teams. -
Increased achievement of targets
Employees can keep track of their performance and what is holding them back.
You can clearly see who is doing what to achieve the goals, generating positive pressure for them to be met.
This positive pressure generates greater commitment to the organization and consequently greater job satisfaction. -
Communication channel between managers and employees
Giving employees the opportunity to regularly discuss their performance and work standards with their supervisors provides a basis for creating a sense of teamwork and camaraderie. A system of open two-way communication between managers and employees even improves employee satisfaction, as they become more participative and committed, even making room for salary discussions.
-
Confidence in the data
Como todos os níveis de gestão da empresa têm acesso ao sistema, a consistência da informação contida nele é de alta confiabilidade. O software tira a responsabilidade das costas do analista. Além disso, existe um conjunto objetivo de critérios para avaliar o desempenho de acordo com cada cargo.
-
Support for promotions and dismissals
Providing the supervisor with a means of identifying the strengths and weaknesses of an employee's performance is an important support tool when it comes to dismissals and promotions.
They are the basis for determining promotions and salary increases, as well as terminating employees whose underperformance is repeated despite the feedback received. It is an alternative for explaining terminations and highlighting opportunities for professional growth.
It is also an important source of documentation in the event of legal proceedings. -
Identifying talent for succession
By analyzing the information entered into the system by managers, it is possible to identify and develop the talents hired by the company. Rewarding the profile identified usually leads to increases in performance above expectations. The pay for performance methodology provides a basis for career and succession planning within the company.
Read also: Strategic remuneration and corporate governance: why work together?
By applying the strategic remuneration model in an automated system, managers support meritocracy in the company in a legitimate and impartial way.
