What is performance management software? How it helps your Organization?
Simply put, performance management software enables you to manage employee performance digitally. Like any other digital solution, it provides ease of use, quick retrieval of performance data and easy access to analytics. Additionally, an in-depth solution provides a range of employee engagement and development capabilities for sustainable growth and business productivity.
Typically, the performance management software includes goals management, self-feedback, manager(s) feedback and publishing of feedback & ratings. Niche software such as Synergita provides additional capabilities such as exchange of continuous feedback on goals throughout, updating achieved targets throughout, 1-1 meeting, appraisal letter distribution, continuous feedback, rewards & recognition tools, employee development training, core values rating, e-communication and a mobile app for easy, anytime access.
Why is it necessary to have performance management software?
Can you imagine having a ledger to maintain the leave records of your employees, using it manually to calculate monthly salary, maintaining salary breakups in the account books and so on? How primitive it sounds! How tedious, time consuming and error-prone the task would be? The simple leave management and payroll software takes away your entire burden and offers you a streamlined, error-free leave and salary management. Retrieval of historical data, analytical reports all are just a click away. The software simplified manual efforts and time. The same reasoning can be applied to validate performance management software. But the benefits don’t end in storing, retrieval and analytics.
How it helps the HR team?
The greatest need for performance management software stems from the non-completion of appraisal within the stipulated time. As such the appraisal process is tedious – Deploying the feedback forms to all the employees, collecting self-feedback, getting managers’ feedback, collating the results (and if multiple levels of manager feedback is involved, the problem is compounded), normalizing and publishing the rating and then trying to get any business insights from the results. Even for a minuscule number of 100 employees, the process stretches into a few months and if the employee size is any bigger than 500, it is impractical to manage without a tool. When you put a geographically distributed workforce, gig workforce, and matrix workforce into this equation the problems faced by HR teams are exponential.
A performance management tool takes care of all these and more. The performance appraisal process is defined and initiated for the employees. The automatic notification and reminders takeover the task of continuous follow-up and get it done on time. HR teams can save 60% of their time and effort by using software for performance appraisal.
How it helps Managers?
The primary purpose of performance management is not anymore the evaluation of past performance or compensation calculation. Nowadays, companies are viewing it more as an opportunity to nurture and develop their workforce. Instead of once-a-year annual reckoning, companies prefer continuous feedback based monthly or quarterly performance reviews to track and tweak employees’ performance. Continuous in-the-moment feedback from managers can help employees amend their approach and enhance their efficiency which reflects in their final output. Continuous conversation improves collaboration among the team. Managers can mentor or coach the team members throughout. Virtual awards & rewards programs help managers recognize employees’ achievements instantly and boost their morale.
After implementing continuous check-in process in their talent management in 2012, Adobe saved a total of 100,000 manager hours per year and redeployed it to important business priorities, which otherwise spent on administrative tasks of the traditional performance management process.
How it helps employees?
It brings transparency and consistency to your performance management process. Employees don’t see the rating as an arbitrary factor but realize it reflects the systematically tracked goals and achievements. Continuous feedback and multiple reviews convey the level of performance of the employees; so, the annual appraisal did not spring any unpleasant surprises for them. They get ample opportunities to step up their performance and achieve their career goals. Continuous feedback based performance management system helps improve employee engagement and motivate employees to push their boundaries.
Cargill, the largest privately held corporation in the USA, adopted agile, continuous-feedback based “Everyday Performance Management” for their mammoth workforce. An overwhelming 69% of employees feel they receive timely, development feedback that is helpful for their career growth.
How it helps the Business?
The on-time completion of performance appraisal, time and effort savings of the HR persons, improved manager-employee collaboration, engaged employees all have a direct or indirect effect on business performance. Besides knowing the people and performance trend analytics support the creation of long term road map for your business. Identifying the top performers and High-Potential (HiPo) employees help organization nurture the future leaders. They can even take measures to retain valuable resources. With the penetration of AI in human resources, the big performance conversation data will provide insights into the employees’ state of mind. You can know in advance the future skill demands and train your employees. Ultimately, the performance data and analytics make your business future-ready.
Google’s continued success in terms of employee productivity and profit generation indicates the effectiveness of their employee performance management.
Your employees are your biggest assets. How can you not invest in them and help them achieve their potential? Synergita, the award-winning employee performance management and engagement software, helps 150,000 employees across the globe to achieve their performance potential. Take the free test drive today.