HRMIS Week 12: Rewarding Employees

Rewarding Employees (HRMIS Week 12)

• Course outline includes Talent Management and HR planning, Recruitment and selection in an internet context, Training and Development, HR metrics and workforce analytics, HRIS privacy and security, HR in the digital world, and the future of HRIS, International HRM, and Social Media.

Performance Management

• Performance, rewards, and payroll systems focus on the basic exchange of inputs and outputs between employees and employers.
• Employees provide performance, and in return, employers provide rewards which are distributed through payroll systems.
• Performance management systems are typically internal to the organization, but data must be linked to other systems (rewards, staffing, training and development, career development).
• Key elements of performance management include planning, observation, and providing positive or corrective feedback.

Performance Planning

• Performance planning is constructed in a way that is adaptable to various management styles.
• Performance is first defined for a specific role, encompassing the employee's duties and responsibilities.
• Outcomes and behaviors are described when observations are difficult to make.
• Specific outcomes and behaviors are required to measure performance for each dimension.

Performance Contract

• After performance standards are developed, the manager must communicate these standards to the employee.
• The employee and manager collaborate to set goals for the performance period (typically a year).
• The manager and employee's agreement on performance, standards and goals forms the performance contract.
• Nontraditional employees (remote, contingent) are important to success and should be included in PM records.

Performance Feedback

• Performance instruments and criteria vary based on job type.
• Non-management positions typically have consistent criteria.
• Management evaluations combine goals and objectives and competency assessment.
• Positive feedback is provided for performance exceeding standards.
• Corrective feedback is provided for performance below standards.
• AI-enabled PM solutions facilitate immediate performance feedback for a better experience.
• Chatbots can be used to address employee inquiries.

Outputs and Inputs

• Performance summaries are usually annual, but some organizations use quarterly or semi-annual reports.
• An important output is the Individual Development Plan (IDP) outlining steps to improve employee performance.
• Inputs include various data levels (organizational data, job-level data, individual data).
• Organizational data includes links to unit goals, strategies, and business plans.
• Job-level data provides key tasks, responsibilities, and expected outcomes for individual performance plans.
• Individual data forms the base for performance management, starting at individual level analysis

HRIS and Performance Management

• Employees and managers can input comments and observations throughout the review period.
• Documentation of positive and corrective feedback is crucial.
• Systems can assist in identifying development activities to address performance challenges.
• Performance management systems should interface with staffing and training applications.
• The most important reports generated by HRIS include performance contracts and annual summary appraisals.

Compensation

• Compensation is the primary outcome for most employees and a great deal of dissatisfaction can result from perceived unfairness.
• Basic compensation systems include base pay, merit pay, short-term and long-term incentives, benefits, recognition, and awards.
• Base pay is driven by job evaluation and market benchmarking processes.
• Examples of short-term incentives include bonuses, gain sharing, and profit sharing.

Data Inputs (Compensation)

• Internal data includes job descriptions, employee performance and salary history, and organizational unit information.
• External data includes market survey data and reward practices.
• Internal and external data are combined to develop job evaluation results, salary structures, and merit matrices.

Reports and Outputs (Compensation)

• Managers receive budget reports.
• Employees receive annual compensation reports detailing all compensation elements.
• Data flows to payroll; federal, state, and local agencies.
• Employees typically do not make compensation decisions; functions are for information.

Benefits

• Benefits programs include pension plans, savings plans, Social Security, workers' compensation, insurance (unemployment, disability, life), medical, dental, and vision care.
• Employees and families can be protected from costly illness and accident risks through preventative care.
• Compensation benefits like special days (vacation, holiday, personal days, family leave) can re-energize employees and give them time with families.
• Miscellaneous benefits like dependent care, flexible work, employee assistance programs, memberships, tuition reimbursement, and employee discounts are typical of those offered by top companies.

Payroll

• Payroll is the transactional process of transferring compensation and withholding taxes.
• Payroll modules often integrate with accounting systems, but not necessarily with the HRIS (so the interface between HRIS and the payroll system is critical).
• Payroll is frequently outsourced in organizations.

Data Inputs (Payroll)

• Payroll system inputs include compensation, benefits, and other additions/deductions.
• Time and attendance data are typically entered in separate modules and processed within payroll.
• External data from government agencies/tax authorities are crucial for accurate withholdings.

This quiz covers essential concepts of performance management, focusing on the relationships between employees and employers regarding rewards and payroll systems. Topics include performance planning, training, HR metrics, and the evolving role of HR in the digital world. Test your understanding of how HR practices influence workforce dynamics.