The HR department forms the backbone of any organization. Its role is to ensure everything people-related runs efficiently and smoothly. An HR team that works effectively will track performance and look for ways to increase productivity across the company.
For many years, these HR processes would have been done manually, but now there’s intuitive and modern software that can completely transform any performance management system you’ve got in place. It’s called employee performance management software.
What is Performance Management Software?
Performance management software is a way for a company to track, analyze, and evaluate the performance of its employees. You can use the data provided by the employee performance management software in a myriad of ways. For example, it can help the HR department better align employees to achieve organizational goals, reward high-performing people for their quality work, and provide feedback.
With more than 43% of Generation-Y workers asking for weekly feedback, an effective performance management system is essential. In addition, with COVID-19 forcing many people to work from home, an effective performance management process is crucial.
Let’s look at five ways performance management software can improve your organization.
1. Providing Open Channels of Instant Communication
Real-time interaction is something that’s become part and parcel of any office environment. After all, communication is vital. With studies showing that accurate feedback has the potential to increase company performance by 39% and in-the-moment feedback increased employee performance by 12%, it’s no wonder that real-time feedback and future-focused performance discussions are now essential.
Traditionally, feedback and performance discussions would have been limited to an annual or bi-annual event. Fast forward, and they can now be an everyday part of good management.
2. Encourages Regular Check-ins With Employees
Performance management software allows companies to replace their outdated annual appraisal with regular and more future-focused “check-ins.”
When your employees have regular one-on-ones with their managers, they are three times more likely to be engaged than employees who have infrequent sessions.
When your employees are more engaged, the knock-on effect is increased performance. Not only that, your employees are more likely to be among the top performers.
Performance management software can help HR professionals by sending out emails, agreeing and sharing action points, and providing a place where vital notes can be stored, shared, and referred to at a later date.
3. Helps With Performance Reviews
Before technology came to the rescue, performance reviews were tedious and laborious. However, the software can simplify the process in many ways. For example:
- Reduces the time it takes to conduct a review
- Allows a set of questions to be configured and answered quickly and easily by managers
- Managers answers can be more insightful because they are based on knowledge gained via regular check-ins and feedback
4. Allows for SMART Goal Setting
The software design allows managers and employees to collaborate on SMART objectives. Employees then have a clear idea of their priorities and deliverables.
The software also helps by ensuring individual objectives are aligned with and support overall organizational goals.
With employee performance management software, flexibility is possible because goals can be updated or added at any time.
5. Provides Guidance on Good Performance Management
Not everyone is an expert in performance management processes. However, the best performance management software can help users with guidance and advice on best practices and skills. Unfortunately, not all businesses have the time, manpower, or budget to run regular performance management training. Some of the topics you might find covered include setting objectives, making a performance management discussion more productive, and giving effective feedback.
Both technology and software are advancing at a tremendous rate. So if you want your business to keep up wither everyone else, you’ve got to do everything you can to ensure your company is as productive as possible.
To do that, there are lots of tools you can use, one of which is employee performance management software. When you select the software you want to use, check out the differences as they will make a big difference to your business. Let technology do the heavy lifting for you, and you’ll have more time to focus on what matters most, your people.
PMS (Performance Management Software) is so much more than something you’re using to plug a gap or to ensure you’re being compliant. The process itself is a barometer of what’s working and what’s not in your company. It allows you to check your employees are productive, trained, and satisfied. It also highlights whether there is effective coordination between long-term value creation and everyday assignments.