As an HR, it is your responsibility to track the performance of each employee. To ensure that your operations run smoothly, you must understand what drives your employees to achieve their full potential.
Implementing an efficient HR performance management software is the best way to streamline the review and appraisal process. With an efficient system, as an HR, you can increase organizational efficiency.
Importance of Performance Management Software
An HR software for performance management has a lot of potential for modern businesses. Yet their use is not that common:
- 58% of companies in the US still use spreadsheets
- A Harvard Business Review Analytic states that in 2020, only 46% organizations have upgraded their review process.
- Less than half the organizational leaders use consistent tools for the performance review process.
- 38% of HRs have stated that performance management has kept up with growing business needs.
Why are Regular Performance Reviews Necessary?
With regular performance reviews, you can achieve the following:
- Employees feel recognized
- Their concerns are viewed and heard
- Promotes a positive work culture
- Job roles and assignments can be improved and developed
The below data and statistics will help you better understand the importance of a performance review:
● Employee engagement increases by 70% when provided proper reviews by their managers.
● Zivvia has performed market research which stated the following
○ More feedback vis-a-vis their work is requested by 65% of employees
○ Employee turnover has the potential to be reduced by 14.9% with proper reviews
● However, Forbes published that, after receiving their performance reviews, only 14% employees feel motivated.
A Gallup study has shown that employee turnover can be reduced significantly by almost 14.9% with a proper feedback system and transparent appraisals.
What Should a Good HR Performance Management Software Have?
The following are essential features of an efficient HR performance management software:
- There should be an option for real time reporting
- It should provide access to continuous feedback
- Have an onboarding module for new employees
- It should streamline the process and make the organization’s work easier.
- Provide time tracking
- Provide performance tracking
- It should be compliant with industry standards
- Data stored on the software should be secure
- It should have an option for employee schedule
- The dashboard should be customizable
- Should encourage employees to interact with managers
Positive Impacts of Having a Good HR Performance Management Software
Alt text: A good HR performance management software increase productivity and profit.
A good HR performance management software has a positive impact on the work delivered and the work culture.
- Increases employee engagement
- Helps retain employees
- Boosts morale in the workplace
- Improves the quality of work done
- Motivates workers to do better
- Facilitates communication between workers and the management
- Helps the management recognize the good performers
- Provides the employees with constructive feedback
- Helps align employee goals with those of the company
- Makes the review process fair and transparent
How to Pick the Right Software for Your Firm?
To streamline your evaluation process, it is essential to have the right software. Your business needs are of the essence when it comes to selecting an HR software for performance management. Ensure that the following criteria are met:
- The software used should be scalable and should accommodate the growing number of employees
- The cost of the software and the value it adds to the organization
- Customizable software should be preferred over others
- The company should offer bug fixes
- Regular software updates should be provided by the developer
- The software should employ methods to do the following:
- Easy to implement and user friendly
- A clear and transparent review system
- Effective workforce planning and management
- Tells the difference between employees who have potential and those who perform well
- Identify people for leadership positions
- Helps in decision making:
- Promotions
- Bonus
- Assigning job roles
- Reskilling
- It should evaluate with the help of the following:
- Job roles
- Duties assigned
- Additional achievements
- Identifies flaws and strengths
- Assessments vis-a-vis performance
To Conclude
In the age of automation and AI, it is simply easier to employ HR performance management software. This helps streamline the business process and make the review process more efficient.
As an HR or manager, you can keep up with growing workforce demand and get with the times. With an HR software for performance management, you can make your employee feedback process simpler and easier to track.
Additionally, this will ensure a fair, transparent, and easier to track process. Further, this will boost an employee’s faith in the company and the evaluation process.
Thus, the managers can help create and maintain a positive work environment. It will also motivate employees to do their best.
