SAP SuccessFactors:
why it’s time for a change

SAP SuccessFactors

SAP SuccessFactors change

Numerous surveys have demonstrated that businesses of all sizes and industries are facing significant workforce challenges, including:

  • Employee engagement eroding to all-time low
  • High worker attrition rates that continue to grow
  • Short supply of talent qualified for future leadership roles

Real progress takes fresh ideas and strategies – not conventional HR practices that have been ineffective.

SAP SuccessFactors change

Why It’s Time for a Change

As a form of annual appraisal in which raises and promotions are awarded based on competitive rankings, performance management has mushroomed into an unwieldy, complex behemoth that fails to make anyone happy.

According to a recent study, only 8 percent of global organizations claim that their performance management process is worth the time spent on it. In the same study, more than 70 percent are considering redesigning and simplifying their approach. On other hand, 72 percent of HR professionals cite excessive process or decision-making complexity as a reason why their business is not achieving its goals.

If these studies are any indication, performance management is ripe for redesign. However, this is no small undertaking. To make the case within and beyond the HR area, it must be widely understood why this change is long overdue.

Outdated Processes

The time-honored concepts of annual talent cycles, annual reviews, leadership driven from the top down, and training do not fully serve the reality of today’s workforce and business. Instead of improving engagement, motivation, and retention, these traditional practices often create busywork and discord. Performance management must involve more coaching and feedback as well as continuous and frequent dialogue between the supervisor and talent.

Unreasonable Complexity

The pace of modern business drives the need to simplify because traditional HR practices are a poor fit for today’s nimble, teamdriven, and fast-changing business dynamics. Plodding workflows have costly by-products. Take recruiting, for example. A typical hiring scenario might have ten steps, where only two are necessary. While the process lumbers along, promising job candidates are recruited and hired by more agile competitors.

New Realities of the Job Market

Companies do not have the luxury of pushing out low performers. Everyone has to be coached and developed to succeed. It is still important to cultivate high-potential talent and future leaders, but not at the cost of alienating everyone else. The up-or-out model of performance management does not work well when talent is highly mobile and specialists are scarce. Right now, both conditions are true. Employees who feel ill-treated or under-appreciated are willing and able to leave – especially the best and brightest. With social networks and tools at their fingertips, it’s easier than ever to find new positions.

Complicating matters more is the rising trend of employees who report to more than one manager. In fact, it is estimated that spans of control are between 20 percent and 30 percent higher than they were five years ago. As more groups are managed by cross-functional team leaders, traditional single-manager evaluations do not present the full picture of an employee’s achievement and performance. As a result, feedback should come from many sources – not just one supervisor.

The Power of Social

By enabling people of all levels to openly share goals, recognition, and project-related insights, enterprise social tools add a new and valuable dimension to the workforce culture. Evidence shows that folding this informal, transparent feedback into appraisals improves motivation and fosters innovation.

SAP SuccessFactors change

SAP SuccessFactors is a world-leading provider of cloud human experience management (HXM) – the new people-focused term for HCM. Our HXM suite lets you provide employees with experiences that recognize their individual value and consistently motivate them to achieve peak performance levels.

Check some SAP SuccessFactors features:

  • Employee Experience Management
    Give employees every opportunity to do and be their best. Listen to their feedback, make the most of their benefits, and keep them engaged with exceptional employee experiences.
  • Core HR and Payroll
    Support your employees wherever and however they need to work – with global solutions for core HR, payroll, time tracking, benefits admin, HR service delivery, and more.
  • Talent Management
    Adapt quickly to fluctuating talent needs – with powerful software for recruiting, onboarding, performance, compensation, learning, succession and development.
  • HR Analytics and Workforce Planning
    Make smarter decisions faster, using data-driven insights in every HR process, using people-analytics and workforce-planning tools to improve performance company-wide.

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