Manage employee performance and growth

Applies to: Dynamics 365 Customer Service, Dynamics 365 Customer Voice, Dynamics 365 Field Service, Dynamics 365 Finance, Dynamics 365 Guides, Dynamics 365 Human Resources, Dynamics 365 Project Operations, Dynamics 365 Sales, Dynamics 365 Supply Chain Management

This article explains how to use the end-to-end business process manage employee performance and growth to help with employee learning, skills tracking and development, goal setting, and performance reviews.

Managing employee performance and growth is essential for any organization that wants to foster a motivated and skilled workforce. In today's dynamic business landscape, you can use Dynamics 365 to streamline this process.

Dynamics 365 Human Resources and Customer Voice work together to provide a comprehensive solution. You can use Dynamics 365 Human Resources to define performance and review processes, competency requirements, career paths, and learning plans. You can also use Customer Voice to gather valuable feedback that contributes to a holistic view of employee performance. This integration helps you align your workforce strategies with real-time insights, ensuring a more effective approach to employee development.

When you use Dynamics 365 Human Resources with other apps such as Project Operations, Supply Chain Management, or Field Service, you can manage the skills required for different types of work such as project work, production work, or field work. When you use Dynamics 365 Human Resources with Commerce, you can manage the shifts and training for the frontline workforce in brick-and-mortar or call center stores. You can also use Dynamics 365 Guides to provide augmented reality training and upskilling for employees. And you can use Dynamics 365 Remote Assist to help field workers in their work or monitor their skills. Finally, you can use Dynamics 365 Customer Service to monitor calls and customer service quality.

Managing employee performance and growth involves a series of interconnected business processes. These processes include defining performance and review procedures such as goal setting and documenting employee performance. They also include skill management processes such as establishing required competencies for roles, maintaining a repository of skills and competencies, and analyzing gaps between skills required for the jobs and the skills of the workforce.

The employee growth process includes learning and succession planning processes such as managing course offerings, creating learning plans, assigning courses, recording employee progress in assigned learning, and analyzing and reporting on employee learning. These processes also include outlining employee career paths and formulating succession plans. These processes are supported within Dynamics 365 and help you automate and optimize the entire employee management lifecycle. This promotes efficiency and strategic decision-making for organizations that want to cultivate a high-performance culture.

You don't have to use all the features and functionality for managing employee performance and growth in Dynamics 365 Human Resources. You can add any of the features at any time. However, some downstream features such as skills competencies might be required for downstream scheduling processes in apps such as Field Service, Project Operations, and Supply Chain Management. In these cases, you should plan the skill definition and management processes earlier in the project to define the flow of data for the downstream processes.

Stakeholders

Many people across the organization should contribute to the decision-making process and design of the manage employee performance area. The following list provides examples of such stakeholders:

• Human resources leaders and management stakeholders include HR managers, talent development managers, and learning and development specialists. They collaborate closely with competency management and succession planning stakeholders to ensure alignment with organizational goals throughout the design and implementation phases.
• Competency management stakeholders include competency analysts, job role designers, and career development specialists. They actively contribute to the design and testing phases, ensuring that defined competencies align with organizational needs and job requirements.
• Succession planning stakeholders include succession planners, leadership development managers, and talent acquisition specialists. They play a key role in the design phase, ensuring that succession plans align with organizational objectives and talent development strategies.
• Learning and development stakeholders include training coordinators, learning experience designers, and employee development coaches. They're integral during testing, ensuring that training modules and courses effectively address defined competencies and career paths.
• Performance management stakeholders include performance appraisal managers, employee relations specialists, and performance metrics analysts. They collaborate closely with HR leaders in the implementation phase, overseeing the rollout of defined performance management processes.
• Skill gap analysis stakeholders include skills assessment coordinators, data analysts, and HR business partners. They actively contribute to testing and refining analytical tools during the design and implementation phases to ensure accurate skill gap analysis.
• Managers and supervisors stakeholders include team leads and department heads. They play a pivotal role in executing performance reviews, helping goal-setting, and providing ongoing feedback to employees. They actively participate in the performance management process, ensuring that individual goals align with broader organizational objectives and contribute to employee growth. Additionally, they collaborate with HR leaders to document and review employee performance, fostering a culture of continuous improvement within their teams.

Manage employee performance and growth process flow

The following diagram illustrates the manage employee performance and growth business process area. Each solid gray rectangle on the diagram represents an end-to-end business process. The solid blue rectangle represents the business process area. The diagram shows the subprocesses for the business process area. The arrows on the diagram show the flow of the business process in an organization. If a subprocess can lead to more than one other subprocess, the parallel subprocesses are shown as branches.

1. Start

2. Hire to retire

3. Onboard and manage the employee lifecycle

4. Manage employee performance and growth

   1. Define the performance and review process

      1. Define goals

      2. Review and document employee performance

      3. Define employee career paths

         A parallel branch connects into Define and manage course offerings.

      4. Define employee succession plan

         A parallel branch connects into Define and manage course offerings.

   2. Define the required competencies for jobs

      1. Maintain skills and competencies repository

      2. Perform skill gap analysis

         A parallel branch connects into Define employee career paths.

   3. Define and manage course offerings

      1. Define employee learning plans
      2. Assign courses to employees
      3. Record course progress and results
      4. Analyze and report on employee learning

5. End

Note

Each of the following steps have an annotation for Start, which connects to Case to resolution, which connects to End: Define the performance and review process, Define goals, Define employee succession plan, and Perform skill gaps analysis.

Manage employee performance benefits

There are many key benefits that you can use to monitor and measure the success of using technology to support the manage employee performance and growth business process area.

Improved employee performance visibility

Dynamics 365 Human Resources offers comprehensive visibility into employee performance through its robust features. You can access key performance indicators (KPIs) such as individual and team goals, completion rates of training modules, and skill acquisition metrics in real time. You can use these KPIs to monitor and assess employee performance effectively. This transparency helps you make informed decisions, identify top performers, and address areas for improvement, creating a culture of continuous development and high performance.

Strategic goal alignment and monitoring

Dynamics 365 Human Resources helps you align individual and team goals with broader strategic objectives, and you can integrate this data with Viva Goals for easy-to-use goal management. You can create, track, and monitor goals at various levels, manage pay rates associated with compensation, and ensure that all employees' efforts contribute directly to the overall success of the organization.

You can use KPIs related to goal achievement, alignment rates, and goal completion timelines to measure the effectiveness of goal-setting strategies and the organization's progress toward its overarching objectives.

Enhanced employee engagement and feedback management

Dynamics 365's integration platform integrates seamlessly with Dynamics 365 Customer Voice to facilitate a holistic approach to employee engagement and feedback. You can use surveys and feedback mechanisms to gauge employee satisfaction, identify areas for improvement, and measure the impact of performance management initiatives on employee morale.

By analyzing KPIs such as survey response rates, sentiment analysis, and engagement scores, you gain valuable insights into the effectiveness of your strategies. You can use these insights to make data-driven decisions to enhance the overall employee experience.

Efficient cross-functional collaboration

Dynamics 365 goes beyond HR processes by seamlessly integrating with Field Service, Project Operations, and Supply Chain Management. This integration ensures that employee performance and growth align with broader organizational functions, promoting cross-functional collaboration. For example, the integration with Field Service enables you to link employee skills directly to field service requirements, optimizing resource allocation.

This holistic integration not only enhances operational efficiency but also contributes to a more streamlined and synchronized approach to employee management across various business units.

Data-driven decision-making

Dynamics 365 empowers you to harness the power of data through robust analytics and reporting capabilities. You can use KPIs related to performance metrics, skills development, and training effectiveness to make informed decisions.

By gaining insights into employee learning patterns, skill gaps, and performance trends, you can proactively address challenges, allocate resources effectively, and tailor your strategies to meet the evolving needs of the workforce, ultimately driving organizational success.

Next steps

1. Plan and recruit your workforce
2. Onboard and manage the employee lifecycle
3. Manage employee performance and growth (the article you're currently reading)
4. Manage occupational health and safety
5. Administer employee and manager requests
6. Manage employee benefits and compensation
7. Manage employee time and attendance

See also

• Performance management
• Configure skills
• Create a goal
• Courses overview
• Questionnaires
• Configure skills
• Create a skill gap analysis or a skill profile analysis
• Map skills
• Get started
• Specify characteristics for resources
• Project resourcing home page
• Resource capabilities
• HR Functional Series - Part 3: Employee Development | February 17, 2022

Contributors

This article is maintained by Microsoft. It was originally written by the following contributors.

Principal author:

• Rachel Profitt | Principal Program Manager

Other contributors:

• Ana Ines Urrutia | MVP

• Priyanka Sinha | Senior Solution Architect