"It is much more difficult to measure non-performance than performance." 
- Harold S. Geneen
This wonderfully insightful statement by the former president of ITT Corporation vividly illustrates the American business preoccupation with performance. While almost all business metrics are geared toward measuring superior performance, they are only half of the equation in running a successful and profitable business.
While performance may drive sales and top line growth, the elimination of underperformers is equally necessary to drive gains on the bottom line. This measurement of underperformance is especially relevant to human capital resource managers as they are tasked with separating the wheat from the chaff.
The Role of Analytics in an HRIS
The word “analytics” has a certain degree of vagueness to it that may intimidate the uninitiated, however, the analytic process in business is really just a way of measuring the completion of certain clearly defined tasks and objectives. An HRIS is ideally suited to monitor many of these tasks as it can perform many routine “gate keeping” jobs with remarkable objectivity and efficiency. Performing these tasks with an HRIS can help an organization on several levels.
Allows Employee Self-Monitoring
Nothing is more demoralizing to an employee than to be reproached for a non-compliance issue over which they have no real control. There are countless instances where an employee has been denied a promotion or a raise because they are not adequately trained or certified in the eyes of the company. Though the responsible location manager may have legitimate reasons for failing the employee in this regard, blaming the manager does nothing to remedy the underlying situation for the employee.
Self-administration through an HRIS of the more routine training and certification programs can leave the responsibility to the employee and lead to greater employee motivation and satisfaction. Similarly, the self-administration only requires management to monitor the situation and act only when necessary.
Frees Up Location Managers
It should come as no surprise that location managers prioritize their duties and a somewhat informal schedule develops for these tasks. Unfortunately, any tasks extraneous to this schedule are often overlooked or disregarded. This includes such tasks as implementing new training procedures, new safety protocols or even just getting signatures on the company benefits handbook.
While these procedures have undoubtedly utility, administering all of them is really a case of monitoring non-performance. The essential question is always the same, “Did the task get completed for every appropriate employee?” This is another type of task that is ideally performed by HRIS. Not only will the software system perform the task in a more efficient and reliable manner, it will also free up your location managers to concentrate on more important matters like your customers.
Empowers HR & the Executive Suite
It is at this level that Mr. Geneen’s statement makes the most sense and really bears full fruit for a company. An HRIS gives upper management a convenient and efficient way to monitor the non-performance of employees. Fundamentally, this tool is just as effective at creating profit as any metric that measures “performance.”
Simply monitoring managers and employees for compliance with company initiatives is one of the simplest and most effective ways to identify underperformers. In this manner, HR directors and small business owners can rid their company of the dead weight and concentrate their efforts on supporting the best of their employees.
The HRIS Difference
As the sentiment of the quote indicates, it is far harder to measure underperformance than it is to recognize performance. This fact is undoubtedly due to the unwillingness of many managers to fault their subordinates for seemingly minor failings. However, the implementation of company policies can have much larger ramifications including ones in both the legal and regulatory areas.
Obviously, the implementation of these policies should not be left to chance or haphazard management abilities. The use of an HRIS in monitoring poor performance is an objective and cost-effective way to help ensure that the worst of your employees do not hold back your very best people.
About the Author
Carolyn Sokol writes about issues that may affect small businesses such as human resources, HR management software, and HRIS systems. She is a founder of PEOcompare.com and contributor to compareHRIS.com, both of which help match businesses to the right HR or payroll service provider for their particular needs. Her background is in marketing and communications, employee education and training, development of policies and procedures and the ongoing delivery of outstanding customer service.