Why you should adopt Performance Management Software?

Why you should adopt Performance Management Software?

The Performance Management process is integral to every company’s success. It helps increase motivation and align everyone’s efforts to the overall goal. An efficient process leads to increased productivity and subsequently higher company bottom line.

Managers or the HR team resorting to traditional paper-based procedures for performance management have a tough time being efficient in the process. They have to struggle to extract meaningful information from the enormous amount of data available throughout the organisation. No reason why performance management should be an exception when companies have constantly been on the lookout to make business processes more efficient..

The field of performance management has evolved leaps & bounds from its earlier forms. . Earlier, annual performance reviews were the norm. But nowadays agile performance management is taking over. Managers have realised that annual feedback is no more viable in a development centric workplace. Thus, a few novel concepts such as Continuous feedback, 360 Degree Feedback have emerged which encourage conducting conversations at frequent intervals to increase the efficiency of the entire process.

However these concepts are not entirely compatible with paper based processes. If you want to scale these & maintain efficiency, there is no other option than to rely on digital systems of records.

Some of the benefits of replacing paper-based reviews with performance management software:

Transparent Goal alignment:

Is it really fair to expect that employees will give their best when they are not even aware of what the company is hoping to achieve? If they cannot see what the company’s goals are, they will find it really hard to contribute towards them.

Performance review software help increase transparency in the organisation by making relevant goals visible. Team members get to see how their efforts are intertwined and that they share responsibility for achieving the higher level goals.

Individuals get to see how their performance fits into the company’s growth and show more accountability towards their work. Whereas managers can more closely monitor the gaps and phases of their team’s progress which allows them to immediately provide feedback as and when needed. All bottlenecks can be quickly identified and dealt with accordingly.

Access real time information:

When it comes to tracking and measuring employee performance through paper based documentation, managers have to rely on considerably old data. Not only is the entire process cumbersome, but it also fails to provide the most recent information.

These days most performance management software provide real time information that managers can rely on to take quick decisions. They provide historical data as well so it helps them to check if the performance levels have increased, declined or remained consistent.

Employees too can access this information at any given time to determine if their performance is on the right track and thus contemplate steps to further enhance it.

Millennials seek immediate feedback:

According to a report by the Bureau of Labor Statistics, majority of the workplace today is dominated by millennials. They have already surpassed baby boomers and this percentage will continue to increase in the coming few years.

Millennials seek instant feedback. They want everything online and at the tip of their fingertips. Paper based reviews are simply not quick and efficient enough for them. They seek efficiency and thus want to work in companies that have adopted modern tools and techniques. While they want to increase their performance to better contribute to company’s growth, they also believe in maintaining their personal growth. If they are not satisfied with the way their company works, they do not hesitate to look for better options which are more in line with their image of an ideal company.

Maximise efficiency by reducing time and efforts :

With paper based performance reviews, the size of the organisation can become a huge problem. The bigger it gets, higher will be the amount of paperwork will be involved. Paper based reviews not only take time but it is a pain to write each and every form manually. Managers need to ensure they have all information available at hand as need can arise at any time.

They can instead opt for Performance management softwares and maintain consistency across the entire organisation. Although there would be upfront costs, in the longer run companies are better off with increased efficiency, better use of time & reduction in turnover.

Managers have to perform a host of responsibilities of which performance management of their team forms just one part. Thus to be efficient at their work, they also need to adapt to technologies that help simplify this work.

PS – In recent times, spreadsheets have taken the onus of being a centralised performance management system for smaller teams. While this can certainly work to an extent, there will always be a lack of flexibility that is expected from a dedicated software. And the problem of scaling still persists, size of the team grows but spreadsheets become too tedious to maintain.