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Introduction
Successful organizations recognize that decisions should be based on ROI. Why should decisions about the implementation of a corporate performance system be held in any less regard?
Not all organizations are alike. What's right for your organization will depend on several factors, including the current business climate, availability of organizational and individual resources, as well as perceived benefits to the organization as a whole. Often, long-term consequences of building software systems internally are overlooked in light of short-term goals and superficial cost-saving measures.
Organizations have come to view performance appraisal systems as necessary. Online employee performance appraisals provide a fast, interactive way to conduct appraisals on the largest investment your organization makes ? your employees. Web-based employee performance appraisals reduce the administrative burden of conducting employee reviews.
Build versus buy? This white paper was written to provide your organization with cursory yet critical information to make an informed decision about building versus buying a performance management system by outlining some of the actual and overlooked costs involved.
Actual Costs
First, we consider actual costs associated with buying versus building an employee performance appraisal system. Keep in mind that these costs are for the development of an e-appraisal solution designed to meet only an organization's basic needs. These costs do not include the additional time and required resources for the planning and development of specialized features that may be requested by the organization. Furthermore, the aforementioned costs represent only a partial list of hard costs and are based on the assumption that you will have access to the necessary in-house talent, however, it is likely that you will need to locate and retain contract workers, thus incurring additional costs. Conclusion
Before deciding to build your employee performance appraisal system in-house, take a close look at both the hard and soft costs and most importantly your motivations for wanting to do so. Ultimately, the decision to build a performance appraisal system versus purchasing a ready-built system will depend largely on the specific needs and available resources within your organization.
If you determine that your organization has the financial and staff resources to build a system internally, keep in mind that a poorly constructed process will result in a less-than-effective system. Should you decide to outsource your performance appraisal needs, select your vendor with extreme care. Invest your time and money into an organization that is able to meet all of your requirements. About Halogen Software With nearly 1000 customers worldwide, Halogen Software Inc. has established itself as the leading provider of employee performance and talent management solutions. Halogen offers powerful, easy-to-use, and affordable Web-based software that dramatically improves HR and line-manager productivity.
The company's award winning suite provides organizations with everything they need to develop and retain a high performance workforce: Halogen eAppraisal, makes it quick and simple to deliver professional employee appraisals that align with organization goals and help drive bottom line success. Halogen eCompensation automates the entire compensation adjustment process including budget distribution and approval. Halogen eSuccession makes it simple and affordable to get a best practices succession planning program underway - right away. And Halogen e360 automates and simplifies formal 360- degree feedback procedures and offers sophisticated performance reporting.
Industry specific suites are provided for Healthcare and Financial Services. Halogen eAppraisal Healthcare, exclusively endorsed by the American Hospital Association, helps healthcare organizations produce meaningful appraisals on time and allows them to always be in a "ready state" for accreditation surveyors from JCAHO(R), OSHA, ACHA, and others. Halogen eAppraisal for Financial Services helps financial services organizations reduce the risk of non-compliance and ships with a comprehensive library of industry specific competencies and authoring aids.
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