Talent Management Challenges In Small and Medium-Sized Organizations

Performance Review Processes & Talent Management

Challenges in Small Businesses

76% Female

24% Male

We conducted interviews with organziations in the following industries:



Internet Services





Professional Services



With: CEOs(2%), VPs(17%), Directors (31%), Managers (25%), Consultants (16%), Others (9%)

Requirements for a Performance Management System:

When talking with potential customers about what they would look for in a performance review system, we consistently heard the following requirements:

1. Simplicity

2. Easy to Use, Intuitive

3. Encourages managers to have performance conversations with employees.

Most employees are asked to perform self assessments 95%

Review Cycles and Timing: 34% Cycle based on hire date, 66% Focal review cycle.

60% Performance reviews are done annually

25% Reviews are conducted more than once a year.

15% Do not conduct formal reviews

85% Keep paper copies of the revies.

Performance Review Tools

54%Pen and Paper

23%An automated system provided by their payroll vendor or PEO

22%A Commercial Software

16% Track goals and performance separately

64% Use comptencies in performance reviews

Most track between 3 & 7 competencies

18% Want to have performance appraisals integrated into an HR suite.

44% Prefer best-of-breed systems.

38% No opinion or it depends.

64% or would use Social Performance Management Tools

84% Most reviews determine bonus pays and salary increases.

32% are satisfied with their current review system or approach.

The favorite reporting tool: Microsoft Excel

The 5-Point Rating Scale is the most common system.

Main benefits of frequent performance reviews

More dialogue between managers and employees.

Better tracks the dynamic nature of business

Performance issues are identified faster.

Top benefits of automating performance reviews:

Increase employee engagement

Make better business decisions

Lower costs.

Talent Management Challenges In Small and Medium-Sized Organizations

shared by kaptasystems on Apr 05, 2012 in Business


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The Kapta team has been conducting detailed interviews with Human Resources leaders and managers in our target market: organizations with fewer than 500 employees. We have interviewed over 100 HR vic...
Category: Business


Kapta Systems
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