There are approximately 125 million formal Small & Medium Business (SMB) across the globe, of which 89 million in emerging markets according to the 2013 report published by World Bank/IFC. These businesses have proven to be growth engines for a balanced economic growth and they have several advantages over their larger competitors. They have the flexibility to make decisions quickly, and they can develop closer personal relationships with their customers, which often leads to greater loyalty.
However, there are management challenges for SMBs keeping pace with large organization’s corporations in regards to getting the talent management (right talent with right skills at the right job) in place. While there is focus on compensation for the employee in these organizations, but there are other issues, which is not keeping pace with the large organizations – namely, performance reviews. Most SMBs perform their annual performance reviews on a paper, which results in a bureaucratic paper movement exercise instead of a talent review processes. Such paper based review processes do not adequately capture meetings between manager and employee, nor have the ability to analyze results to support employee career development. Often resulting in a lack of productivity with this process and disenchantment across the organization, which may lead to attrition. Fostering a good relationship between the manager and employees by providing consistent, concise and transparent information about performance is been identified as a key in supporting employee engagement. Utilizing a solution that provides information to support effective management practices such as industry benchmark data as well delivering information to employees on competencies for improvement or career advancement is way superior to paper based performance reviews.
Mapping the business to the Solution
It is easy to set up with built-in best practices to manage your employee lifecycle. Getting started with talent management for small businesses is a three-step process that starts with automation and moves on to insight and ultimately transformation.
Step 1: Automation: Helps you to automate your HRIS, Org chart, goal management, Performance management, 360 and compensation planning.
Step 2: Insight: Gives insight into employees Career development and planning
Step 3: Transform: Now you also have tools to benchmark and analyze the data with Workforce planning and analytics.
Successfactors Perform and Reward, delivers a robust Cloud based solution to support your talent needs to adequately manage and deliver performance review system in your organization. The solution comes delivered with winning combination of solutions supporting the ability to manage Goals, Performance, 360-degree feedback, Compensation, Analytics, Social and Mobile tools.
Performance: Transform employee reviews into catalysts for improving business performance
360 – Degree feedback: Incorporates feedback from a variety of sources for a full view of performance.
Compensation management: Supports you to allocate the funds effectively to retain your top performers and avoid paying you are under performers.
Analytics: Provide you with the data and the ability to plan, measure, and predict so you can determine employee compliance and engagement and drive the organization forward – giving at hand the capabilities of a human resource information system
Social and Mobile: Helps you share knowledge and accelerate employee productivity through social and mobile capabilities.
Content: The P&R for SMB comes up pre-loaded with 800 industry job descriptions, 90 competencies in 10 catalogues, and 500 goals plus writing and coaching assistance to help leaders write performance appraisals.
Technology: Offers an intuitive approach to talent management and features a simple setup process to help you get your business up and running quickly.
Empowering customers to configure their systems in minutes !
• The Setup Wizard walks you through the process to configure and implement the system features.
• It gives you helpful tips and suggestions for best practices, without leaving the product.
• With access to powerful and flexible admin tools for advanced configurations you retain control over your system.
• The Setup Wizard is the fastest and most reliable way to start getting a return on your investment in the Successfactors Perform & Reward.
Free trial usage Take a guided tour that introduces small businesses to the performance and goal management tools that help companies just like yours grow and succeed. Test drive SAP Successfactors Perform and Reward for SMB free for 30 days, or buy at SAP store
View the video to know more Perform & Reward for SMB