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Reducing Staff Costs And Increasing Productivity

With ever increasing pressure on companies to reduce overall costs every opportunity should be taken to reduce staff costs and improve the effectiveness of the existing workforce.

One quick, and cost effective, way to achieve this is to implement an automated Performance Appraisal process. These systems, such as iK Developments' DINAMIKS® LITE, are web-based and therefore need no installation of software and have no impact on existing computer hardware.

The benefits of implementing web-based Performance Appraisal systems are impressive and wide ranging. They include:

Reduced Costs - With centralised, on-line data the need for producing, passing around and storing paper records disappears. Data can be accessed across all sites 24 hours a day, 7 days a week. With automated workflows, E-Mail prompts and automated reports the time required for HR staff and Managers to support the process is greatly reduced.

Increased Productivity - The ability to cascade Business Goals and prompt staff to align their Personal Objective setting to support key business priorities will ensure that resources are utilised on tasks and projects key to the success of the business. With clear target setting and regular monitoring of progress, all focus is on achieving the Business Goals.

Employee Motivation and Engagement - Clearer definition of responsibilities, more accurate feedback on performance and personal development linked to the Business Goals can lead to more satisfied and productive staff. The company can benefit from lower turnover and the consequent reduction in recruitment costs.

Reduced Grievances and Appeals - With a best-practice procedure inbuilt within the system and up to date, accurate performance data underpinning rating decisions and performance feedback there will be less likelihood for grievances, appeals and Industrial Tribunal cases to develop. Poor performers can be identified quickly and given support to improve, whilst 'high flyers' can be given the opportunity to maximise their potential.

Summary - These benefits will give tangible savings that will quickly give a Return On Investment, as well as less tangible, but equally important, benefits in the areas of improved communications and staff morale.

Overall, the low cost of purchase, simple implementation and potentially major improvement in staff productivity make the decision to move to purchasing a web-based Performance Appraisal system a compelling one.

Author: Malcolm Jones (FCIPD)
Published: 23/02/2010