The results of the survey Performance management in the Romanian companies show that performance management is defined by 67% of managers as the process of recognizing and encouraging the performers, and 66% define it as being about the motivation of the employees. On the other hand, 38% consider it a process of distribution of benefits according to merit and the other 38% see it as a process of collecting feedback from employees.
“The evolution of the last years from the labor market, from a market of employers to one of the employees, have re-launched the discussions on a subject that was often considered self-explanatory. The performance management process was largely a command-and-control way that is now obsolete in the current realities. The technology companies have reset the employee assessment process proposing modern systems for improving employee productivity and retention. It is now time for the other companies to move to a generative performance management system, aimed at accelerating the potential of employees as a mechanism for achieving performance”, says Elena Badea, Valoria Managing Partner.
The three main criteria that the managers take into account when setting the objectives to be achieved by the employee are the following:
- Correlation with the company’s growth objectives (73%),
- Identifying measurable goals (69%), and
- Employee development potential (54%).
Valoria’s study reveals that although 8% of managers say that the performance management process in the company is extremely efficient, and 18% consider it very efficient, and 30% consider it only relatively efficient. At the same time, the managers of 23% of managers say that performance management is an inefficient process and 23% consider it extremely inefficient.
On the other hand, this survey shows that for the Romanian companies, the three main benefits of the performance management system are the following:
- Traceability of results (65%),
- Rewarding and promoting the best employees (62%), and
- The fact that the company demonstrates that it encourages performance (58%).
Only 38% of companies see in performance management a system for improving personnel management processes.
Self-evaluation is the tool used by 55% of companies for managing employee performance, but 45% of companies are based on peer review, 45% are based on evaluation team analysis, and 45% on 360 feedbacks. The managers in 32% of companies use the evaluation by subordinates (upward feedback), while 41% use only the tool called exit interview (the interview when leaving the company).
The direct manager-employee meeting for monitoring progress is the tool used by 73% of companies for follow-up and implementation of actions decided as a result of performance management. Real-time feedback is used by 59% of the respondent companies, and 41% is based on the personal development plan for the follow-up part.
In 10% of the companies, the re-evaluation of the methods or processes of performance management is done every year, and another 14% say they carry out this process every 2 years. At the opposite end, 31% do not have this approach and 34% of companies say they do this assessment at 4-5 years.
“In the 21st century, we can no longer work with 20th-century thinking in everything regarding their results and monitoring systems, including the performance management system. In addition, when the generation born with technology in your arms becomes your primary workforce, it is difficult to use systems that are conducive to other generations. What remains a constant element is the main need for the 1-to-1 conversation and, consequently, the preparation of the skills so that such a conversation has meaning and impact for both parties involved. Find out more details in the results of this unique study in Romania”, says George Agafiței, Trainer & HR Expert, co-author of the study.
About the survey
This survey gauges the perceptions of the executive directors, managers and employees regarding the company’s performance management process. The questionnaire, to which 478 replies were received, was applied between 20 October 2019 and 10 January 2020. In this report we analyze the answers on two levels – the perspective of companies and that of employees. To the questionnaire responded 13% managers from companies with over 1000 employees answered, 18% with 250-1000 employees, 22% with 50-250 employees, 23% with 10-50 employees, and 24% with less than 10 employees. Of the respondents 9% are CEOs/General Managers, 5% are CFOs/Financial Directors, 7% are HR Directors, 21% are HR Managers, 8% are HR Business Partners, 10% are Managers, 11% they are Department Heads, and 23% are employees who do not hold a particular function.