How the use of modern technology can create a more efficient performance management system
Most modern businesses are aware of the importance of a streamlined, efficient performance management system. A carefully-tailored system can improve employee engagement, boost morale and heighten overall business performance. But what role does modern software have to play, and do businesses in the 21st century require performance management software to remain competitive?
In recent years, the HR software market has reinvented itself and we have witnessed a performance review software revolution. As Katherine Jones, vice president of HCM Technology Research at Bersin by Deloitte, has stated:
We are seeing a major shift in the industry, and as performance management continues to change, so must the technology solutions that support it. Organizations today have a need to provide ongoing feedback, a link between individual goals and company-wide objectives and a multi-dimensional view of employee performance. It’s exciting to see solution providers offer features that support those activities.”
Many companies are embracing innovative and thoughtful performance management software systems as an integral part of team development and company performance. But if you are contemplating making a business case for performance management software, you will need to be well acquainted with the benefits and advantages that performance review software can offer. Below, we have compiled the ways in which implementing this technology can add real value to your business.
Performance management software keeps everyone connected
If you aren’t currently using a performance management software package, it is likely that you are either paper-based or relying solely on Microsoft Word or Excel. This is not entirely effective and doesn’t create company-wide visibility of performance and development. Using systems such as this, it is easy for meetings to fall through the cracks. Vital information can be lost and members of staff can end up out of the loop.
Cloud-based systems that work across devices are able to keep HR, line managers and employees up to date on progress, objectives and development plans. Changes to relevant documents can be made instantly and accessed anywhere. Centrally storing data like this allows for complete visibility and faster, more accurate performance management. Using performance management software, HR can also export performance data onto a spreadsheet. This allows them to see whether or not training and development needs are being met and how objectives are progressing.
Performance appraisal software facilitates continuous performance management
Although the many companies still rely on annual performance appraisals, this is rapidly changing and more and more companies are shaking up the way they review performance. Companies such as Adobe and Microsoft have traded in annual appraisals for continuous performance management — one of the biggest HR trends of recent years.
The advantage of regular, monthly performance check-ins is that rather than simply setting SMART objectives at the start of the year, objectives can be flexible and reviewed at frequent intervals. This keeps employees engaged and motivated to achieve their goals. Performance appraisal software helps managers and employees schedule and adhere to these regular meetings, while also allowing them to capture key action points online. These notes can then be accessed by manager and employee, reviewable at any time. On top of this, performance management software can send out email reminders about points that need to be actioned.
Performance appraisal software allows for real-time feedback
Instant feedback and communication is something we have become accustomed to — and real-time feedback is something millennials require to do their job well. This isn’t too much to ask and, if providing this instant communication can boost company performance, it is certainly something to consider.
Performance appraisal software allows feedback to be given “in the moment”, right after an event has occurred. Remember: the quicker feedback is given, the more impactful it is. This is true of both constructive criticism and of appreciation. These days, performance management software is modelling itself on social media, incorporating user-friendly interfaces, mobile-friendliness and real-time feedback. On top of facilitating feedback and employee recognition, this easy interaction enables improved collaboration between teams.
Keep track of Personal Development Plans with performance appraisal software
Most of you will be aware that personal development is a driving force for improved employee performance and engagement. The creation of — and adherence to — Personal Development Plans (PDPs) means employees can grow and become more skilled, knowing that the company they work for is invested in their future. PDPs can be easily managed using performance management software. HR is also able to access PDPs to plan training and development for all employees.
Performance management software helps with objective setting
In terms of performance and productivity, it is so important that employees are clear on — and enthusiastic about — their work objectives. Too many employees are unclear on their goals, which means they aren’t able to really contribute to the success of the business.
Performance management software makes goal setting more of a collaborative and effective performance management process. It helps managers and employees to work together on creating clear, SMART objectives, while aligning them to company goals. Employees can use the software to add progress updates to their objectives, so they are able to track their progress and achievements.
Want to find out more about how this technology can benefit your business? Book a free performance management software demo from Clear Review today.