How Our Client Boosted Employee Performance Using Real-Time Performance Management Software – Catalyst

Our client, a leading player in the Engineering, Procurement, and Construction (EPC) industry with a turnover of ₹2000 crore, employs 1000 people across multiple projects and locations. Despite the company’s success, its employee performance management system faced significant challenges. The traditional performance management system used by the client was outdated, resulting in a lack of regular feedback, unclear expectations, and biased performance evaluations.

In this Let’s understand how our client transformed its approach by implementing Catalyst, a real-time performance management software, for 750 employees. The result was a complete shift in the company’s performance culture, leading to increased employee engagement, fair performance appraisals, and higher productivity.

The Challenge: Traditional Performance Management

Before implementing Catalyst a cloud based performance management software, our client relied on an annual performance management system that was typical of many EPC firms but ineffective in addressing modern performance challenges:

1. Checklist-Style Reviews: Performance evaluations occurred once a year, typically using a checklist format. Employees received feedback based on managers’ short-term memory of their work, which led to biased and incomplete assessments.

2. Absence of Regular Feedback: Employees often went months without receiving any feedback. The lack of a continuous feedback loop resulted in missed opportunities for employee growth and performance improvement throughout the year.

3. Unclear Performance Metrics: The Key Performance Indicators (KPIs) used in evaluations were often unclear, making it difficult for employees to understand how their performance would be measured. This ambiguity affected employee motivation and focus.

4. Biased Performance Ratings: With performance appraisals conducted only once a year, employees felt that their reviews were influenced more by recent events and interactions rather than their overall performance. High performers were demotivated when their contributions throughout the year were overlooked.

5. Perception of Unfair Increments: Increments and promotions were often perceived as biased or inconsistent, leading to dissatisfaction among employees. High performers were not always rewarded appropriately, while others felt they were penalized without clear reasons.

This system did not align with the company’s growth goals, as it hindered employee engagement, transparency, and performance development. Our client needed a system that provided regular, unbiased feedback and clear performance metrics to drive employee productivity and accountability.

By implementing Catalyst, the client significantly enhanced employee performance management through real-time insights and feedback:

Our client decided to implement Catalyst- software for tracking employee performance to address these performance management challenges. Catalyst was chosen for its ability to provide real-time feedback, data-driven performance appraisals, and an unbiased, transparent system for managing employee performance.

Key features of our performance management software that addressed the challenges included:

1. Clear KPIs and Objective Goal Setting:  Our performance evaluation software allowed managers to set clear, measurable KPIs for each employee, which created transparency in expectations. Employees understood what was expected of them, and their performance was evaluated against objective, measurable goals.

2. Unbiased, Data-Driven Ratings: Performance feedback software introduced an automated rating system that captured performance data over time. This helped eliminate biases and ensured that all employee contributions were considered in their final ratings, making the process fairer and more consistent.

3. Monthly Performance Reviews: Instead of the once-a-year reviews, Catalyst enabled monthly performance reviews. These regular touchpoints provided employees with timely feedback, allowing them to adjust their performance and improve throughout the year.

4. Real-Time Feedback:  Our real time performance management software enabled continuous feedback between employees and managers, as well as peer-to-peer feedback. This real-time feedback allowed employees to correct issues early, recognize their achievements, and keep track of their progress.

5. Performance-Linked Increments: Increments were now linked directly to an employee’s year-round performance score. High performers were rewarded more frequently, which created an incentive for continuous improvement.

6. Comprehensive Dashboards:  Our performance management system offered detailed performance dashboards for both managers and employees. Managers could track KPIs in real-time, identify trends, and take corrective actions quickly, while employees could visualize their own progress and understand where they stood.

Implementation Process

The implementation of Catalyst was carried out in phases. Since our client had 1000 employees, the first phase of implementation covered 750 employees, focusing on critical departments that had the highest need for structured performance management.

1. Change Management and Training: To ensure a smooth transition, our client’s HR team worked closely with Catalyst’s support team to develop training programs for both managers and employees. These training sessions helped employees understand how to use the platform, set meaningful goals, and navigate the real-time feedback system.

2. Integration with Existing HR Systems: Online performance management software by Phiedge was integrated with the client’s existing HR systems, ensuring seamless data flow and allowing the platform to capture and analyze employee data in real time.

3. Pilot Program: The first department to implement Catalyst was the Project Management team, as their KPIs were critical to project delivery timelines. The results from the pilot program were so promising that the client rapidly expanded our performance management software to other departments, including Engineering, Procurement, and Operations.

Results and Impact

The implementation of a performance management system had a profound impact on the client’s employee performance and overall organizational culture:

1. Increased Employee Engagement: With regular feedback and clear KPIs, employees felt more engaged and motivated. The transparency and fairness in performance appraisals also contributed to higher employee satisfaction, especially among high performers who were now recognized more consistently.

2. Improved Productivity: The introduction of monthly reviews and continuous feedback created a culture of accountability. Employees knew that their performance was being tracked throughout the year, which led to higher productivity as they worked to consistently meet their goals.

3. Fair and Unbiased Appraisals: Our performance management software’s unbiased rating system helped eliminate favoritism and short-term memory bias. Employees felt that their reviews were based on objective data and reflected their true contributions. This boosted morale and encouraged more consistent performance.

4. Higher Retention of Top Talent: One of the key issues the client faced before Catalyst was the potential loss of high performers who felt demotivated by the old system. With the new system in place, high performers were regularly recognized and rewarded, leading to higher retention rates.

5. Clear Alignment Between Performance and Rewards: By linking increments to performance throughout the year,  Performance assessment software ensured that rewards were directly tied to employee contributions. This created a performance-driven culture where employees were motivated to continuously improve.

6. Enhanced Managerial Effectiveness: Managers now had access to real-time performance data, enabling them to make informed decisions about promotions, development plans, and salary increments. Catalyst’s data-driven insights allowed managers to identify both top performers and those who needed additional support.

 Financial Impact on the Company

The implementation of  our performance evaluation software not only improved employee performance but also had a positive financial impact on the company. With employees now more motivated and productive, project delivery timelines improved, and the company saw a marked reduction in project delays and cost overruns. Additionally, the retention of top talent reduced recruitment and training costs for our client.

Challenges Faced

Despite the overall success of our performance management system( Catalyst), our client encountered a few challenges during implementation:

1. Initial Resistance to Change: Some employees were resistant to moving away from the traditional system, especially those who had been with the company for a long time. However, through effective change management and clear communication from leadership, this resistance was gradually overcome.

2. Learning Curve: The transition to a performance feedback  software required a period of adjustment. Employees had to get used to receiving regular feedback and understanding how their performance was being evaluated. Our client mitigated this with ongoing training and support.

3. Integration Delays: Integrating Catalyst with the company’s existing HR systems took longer than anticipated. However, with dedicated support from Catalyst’s implementation team, the issues were resolved, and the system was fully integrated.

 Conclusion

The implementation of our online performance management software at our client’s company successfully transformed its approach to performance management. With a focus on real-time feedback, clear performance metrics, and unbiased appraisals, Catalyst by PhiEdge enabled the client to foster a high-performance culture that motivated employees and rewarded them fairly.

By implementing Catalyst PhiEdge’s cloud based performance management software, our client was able to increase productivity, retain top talent, and build a performance-driven culture that aligned with its business goals. The success of Catalyst has set the foundation for long-term growth and success in a highly competitive EPC industry. The company’s future looks bright as it continues to leverage real-time performance management to stay ahead in the market.