Performance

management audit
Make it better and make it matter
Performance management audit
Make it better and make it matter
It’s clear that performance management isn’t working: Close to half (46%) of employers in Asia
said that they were not satisfied with their performance management process, according to
our 2015 Talent Management & Rewards Pulse Survey. However, most organisations do not
know what is wrong, and therefore they are not sure how to fix it.

Performance management is not delivering the way it should

Both managers and employees like to see changes the way performance is managed
Only

60% 42% managers and

36%
feel they spend too little time on important activities
e.g. ongoing conversations with employees and
collecting feedback from colleagues. employees are generally satisfied with
the performance management process.

But companies struggle to figure Trends shaping the future of performance

out how to improve the process management

29% Spend
more time

31%
Companies have no on the right
formal measurements activities
to gauge the (discussions, Focus on
effectiveness of their calibration) improving
manager
performance Companies report that line
Change capability and
management process managers do not see the effectiveness
performance
value in the performance
management
management process from once/twice
a year to
ongoing

Source: Willis Towers Watson 2015 TM&R Pulse Survey – Asia Pacific

Core Technical The importance of getting performance

competencies competencies KPIs management right
Performance management is essential for effectively
managing the talents in your workforce. Having the right
performance management process will enhance the
Performance entire talent cycle and facilitate employee motivation,
Management development and growth.

Reward Development Training Promotion/ Succession

decisions plans needs Progression planning

2 willistowerswatson.com
Proven business case to get it right
Engagement
Performance management and manager effectiveness are Rank Drivers
closely linked to the top talent engagement and retention
1 Empowerment
drivers, including relationship with supervisor, goals/objectives,
and career advancement. 2 Image
3 Supervisor
4 Communication
5 Goals & Objectives
Source: Willis Towers Watson 2014 Global Workforce Study
Retention Drivers
Relationship with supervisor/
manager
Career advancement
Base pay/salary
Trust/confidence in senior
leadership
Caliber of co-workers

A Performance Management Audit helps organisations to identify the gaps and opportunities in their current
performance management approach

A Performance Management Audit is a review of existing process and program elements to identify opportunities for
improvement, and help devise a set of ideal performance management guiding principles going forward.

Our Performance Management Audit packaged solution includes a review of 13 key elements of performance
management:

Design Process Link to Business

1. Performance measures 5. The entire performance management cycle 9. Analysis of the goal setting process
(e.g. competencies, KPIs) (goal-setting, feedback and evaluation)

2. Performance category definitions 6. Compliance (degree of adherence to 10. Comparison of individual goals versus
(e.g. meets, exceeds) and the quality of the process) organisation’s strategy

3. Mechanics (e.g. rating scales, weighting) 7. Manager capability and effectiveness in 11. Year-over-year comparison of
managing performance performance improvement for annually
measured components
4. Historical distribution of performance 8. Current forms/technology used
ratings across organisation/divisions throughout the process
(rating differentiation)
Link to Rewards and other HR Programs
12. Link to compensation and other rewards across the organisation

13. Comparison of performance ratings and merit increases

Combined with Willis Towers Watson research and experience, we will present a holistic
heatmap for each area and detail current strengths and opportunities:

Sample Outputs

3 Performance Management Audit

 The way forward
After identifying the strengths and opportunities for improvement, we can assist in redesigning the overall
performance management program, such as:

ƒƒ
Manager training
ƒƒ
Scorecard development to cascade business objectives throughout the organisation
ƒƒ
Reward program redesign to link to performance
ƒƒ
Implement performance management technology platform

Essentially, we help take your company through the transformative journey to achieve the ideal state of performance
management.

Partnering with you

along this journey

Transitional Transformative

Transactional

The Unique Willis Towers Watson Approach

Communication
Proprietary Global Industry Consulting
and Change Technology
Market Data Experience Expertise
Management

About Willis Towers Watson Further information

Willis Towers Watson (NASDAQ: WLTW) is a leading global Please contact your local Willis Towers Watson
advisory, broking and solutions company that helps clients consultant or
around the world turn risk into a path for growth. With roots
dating to 1828, Willis Towers Watson has 39,000 employees Wen Wan
in more than 120 countries. We design and deliver solutions wen.wan@willistowerswatson.com
that manage risk, optimise benefits, cultivate talent, and
expand the power of capital to protect and strengthen
institutions and individuals. Our unique perspective allows
us to see the critical intersections between talent, assets
and ideas — the dynamic formula that drives business
performance. Together, we unlock potential. Learn more at
willistowerswatson.com.

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