New Research Shows that Manufacturers Need Better Goal Alignment to Stay Competitive

by Saba Software | Posted | Business Impact

New Research Shows that Manufacturers Need Better Goal Alignment to Stay Competitive

A new report from Aberdeen Group provides insight into how manufacturing organizations can achieve best-in-class employee performance management.

The study, conducted in May 2010 and involving 65 human resources and line of business professionals from the manufacturing sector, shows a strong link between talent management processes - such as goal alignment and employee development - and the overall success of manufacturing organizations.

It's no secret that manufacturing organizations are faced with a number of challenges. They need to drive revenue growth, improve compliance and streamline operations, while balancing a limited resource supply and an aging workforce.

Results from the study indicate that best-in-class manufacturing organizations - those with a strong focus on talent management, including the use of automated solutions - are better able to address compliance, create time and cost savings, and drive productivity through stronger employee engagement.

Aberdeen highlights Halogen Software customer, CFS as an example of the powerful impact that employee performance management best practices can have on achieving organizational goals. CFS is a leading manufacturer of equipment and materials for the food preparation, processing and packaging industry. Since rolling out Halogen Software's employee performance management system in 2007, the organization has seen a dramatic improvement in goal alignment, a significant reduction in turnover and an encouraging increase in voluntary training.

Regional HR Manager, CFS Group B.V., Scott Mottern explains:

When our employees see how their performance ties into career development, it makes it easier to get their buy-in and enables us to align individual efforts with the goals of the organization. The end result is that we are much more agile as a manufacturer and able to rapidly respond to business needs.

What the Aberdeen study really does is underscore the importance of talent management in addressing a wide range of business drivers for manufacturers such as safety, compliance and quality. The report shows an interesting correlation between corporate performance and goal management; in fact, the overwhelming majority of the highest performing manufacturers participating in the study include goal alignment as a cornerstone of their talent management strategy.

Report author and HCM Research Analyst at Aberdeen, Jayson Saba elaborates:

Aligning employee output and performance with the overall business strategy can help neutralize the impacts of these pressures and boost organizational performance. This approach really provides a roadmap for implementing a talent management strategy and supporting technologies to manage performance and align individuals with company objectives.

To tackle business challenges and catch up to best-in-class organizations, Aberdeen provides three key recommendations to manufacturers:

  • Automate inefficient or manual employee performance management processes
  • Integrate employee goals with business
  • Drive development and engagement through performance

We'd love to hear your comments on talent management in manufacturing. Is your organization already implementing the recommendations listed above? Are there unique challenges your organization is facing that are not addressed by Aberdeen? Please comment below.

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