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 The traditional performance management system used by the client was outdated, resulting in a lack of regular feedback, unclear expectations, and biased performance evaluations.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.