Getting a Performance Management Budget

Getting budget approval for a performance management (PM) project seems to be an ongoing theme amongst HR professionals. The problem seems to be that human resources departments don't often contemplate projects costing tens or hundreds of thousands of dollars. This makes sense to me given that most HR acticity - by amount of time spent - revolves around recruitment, payroll and training. And the dollar amounts for any inititiatives are in the order of a few thousand dollars.

It seems as though most human resources professionals struggle with the concept of the expense required for performance or appraisal management systems - with obvious cause.

The crux of the matter though is not really one of expense but one of value. What does real value mean when applied to performance management systems ? How can a software supplier tell the HR department that they have to pay some money every year per staff member ? Where is the value for the money spent on performance management ? Human resources staff instinctively understand the value in training and developing staff and find it easy to justify large training budgets and recruitment budgets.

The trick is to understand performance management systems in the sense of employee development systems. This is because PM systems usually include a competency framework, personal development goals and organisation objectives which can only be achieved if the employee is further trained and developed. This is what HR is good at. The dollar value comes from getting more people working smarter. When you do the sums, the benefits swampt the costs.


Getting budget approval for a performance management (PM) project seems to be an ongoing theme amongst HR professionals. The problem seems to be that human resources departments don't often contemplate projects costing tens or hundreds of thousands of dollars. This makes sense to me given that most HR acticity - by amount of time spent - revolves around recruitment, payroll and training. And the dollar amounts for any inititiatives are in the order of a few thousand dollars. It seems as though most human resources professionals struggle with the concept of the expense required for performance or appraisal management systems - with obvious cause.

The crux of the matter though is not really one of expense but one of value. What does real value mean when applied to performance management systems ? How can a software supplier tell the HR department that they have to pay some money every year per staff member ? Where is the value for the money spent on performance management ? Human resources staff instinctively understand the value in training and developing staff and find it easy to justify large training budgets and recruitment budgets.

The trick is to understand performance management systems in the sense of employee development systems. This is because PM systems usually include a competency framework, personal development goals and organisation objectives which can only be achieved if the employee is further trained and developed. This is what HR is good at. The dollar value comes from getting more people working smarter. When you do the sums, the benefits swampt the costs.


Related CTI Applications Articles

Navigate the Archives of any Blog in an Interactiv


Google today introduced a new timeline based blog reader that could be a perfect fit for people who follow a very limited number of blogs. And its great for researching blogs as...

Read more about Navigate the Archives of any Blog in an Interactive Timeline...

How to Write an IE 8 Accelerator for your Website


A step by step guide on how to write an IE 8 Accelerator to your website. Also learn how to enable live previews in your Internet Explorer 8...

Read more about How to Write an IE 8 Accelerator for your Website...

Search Content


Content Categories


WhitePapers


How to Buy a Phone System

Considering a new phone system for your business? The Phone System Buyer's Guide from VoIP-News provides you with all of the information you need to make a more informed decision. The Guide helps you...Read More


Oracle Magazine

Oracle Magazine contains technology strategy articles, sample code, tips, Oracle and partner news, how to articles for developers and DBAs, and more. Oracle (NASDAQ: ORCL) is the world's largest...Read More


Which CMS Is Right For Me?

If you're wondering which CMS is the right one for your organization, this comprehensive guide will take you through the various options available, detailing the pros and cons of each. Download...Read More


Sales Force Automation Comparison Guide

Businesses of all sizes can benefit by automating all aspects of their sales processes with an SFA (Sales Force Automation) solution. But due to the sheer number of features that most SFA solutions...Read More




View All Whitepapers