Performance management software is an advanced technology that helps the organizations set the performance standards for the employees and enables the managers to evaluate employee’s task performance on the basis of set standards. It ensures that individuals and teams are committed and engaged to achieve organizational goals.
Its real-time performance monitoring, feedback, and new goal setting replace the traditional annual performance evaluation process.
Performance management software is the next generation HR software that helps the businesses for continually monitoring the performance at each stage and to identify the gaps to be filled by improving the support.
Benefits of Performance Management Software:
- Professional development opportunities
- Forward-looking processes
- Empowered employees
- Individual recognition
- Consistent feedback
- Comprehensive appraisals
- Meaningful interactions
- Integration capabilities
- Reducing biases
- Increasing engagement
Ten Must- Have Features of Performance Management Software:
A performance management system is designed to detect and eliminate performance problems strategically. Its benefits are seen in multiple ways within just a few months after its implementation.
Every performance management software, designed for the particular set of objectives in industry, has different features as per identified requirements but the common must-have features that make it highly beneficial for any size businesses are:
- Dynamic Goals: It sets the goals and communicates the objectives to concerned employees so that they could plan, prepare and perform accordingly. The goals are achievable and written in the specific clear terms. All the set goals are aligned to corporate strategy; thus, these have adequate support from the management. In-built performance metrics help the managers to review the progress and to keep the processes on the track.
- Motivation and Training- Social Recognition: Motivation is the critical force behind the performance. Employees can be motivated through extrinsic and intrinsic rewards. Performance management software has the ability to recognize the special achievements of individuals. Long-term employees’ engagement and talent retention are the key benefits of this feature.
- Performance Record: The tailor-made performance management software includes a vault to store feedbacks, check-ins with management, peer recognitions in a single location and career development progress report etc at one place for any time review to plan for training and promotions.
- Instant Feedback: The performance management software should be capable to deliver instant feedback anytime and anywhere. This feature facilitates the employer and employees to access the feedback database for making informed decisions like for the annual appraisal.
- Clear Measurements: The performance management software supports the managers to interpret the progress status. The easy to use metrics improves the relationship between employees and employer because each informed decision is logically convincing.
- Job-based Reviews: The performance management software should create job-specific assessments for specific teams or employees levels. The job-specific assessment reports include competency level, ratings, indicators for a scope of improvement and description of so-far performance.
- Customizable Reporting: You need to assess the performance reports with different perspectives for development objectives; therefore, the tailor-made performance management software should be capable to develop ‘customized to objectives’ reports on the basis of collected data/ information.
- Integration: You must be able to integrate performance management software with existing technology or platform you are using in HR management.
- Succession Planning: It is an important must-have a feature of performance management software for the rapid growth-oriented businesses. It suggests the new ways to improve performance on the basis of assessed performance, skills, and competencies of individuals. The modern performance management software is being designed with in-built training tools.
- Actionable Insights: Can you improve the employees’ performance without having accurate actionable insights? The performance management software must be able to provide actionable insights into different domains of employee evaluations. The easy-to-navigate dashboard must have a reporting tool to get the fair idea about ‘why to do, what to do, how to do’ for performance improvement.
To summarize, the results-oriented performance management software designed for the best ROI must have Platform customization, API integration, Internationalization, Reporting, Compensation, Succession planning, Career succession planning like advanced functionalities in addition to above mentioned.
Five Tips To Outsource The Best Performance Management Software:
While planning to outsource performance management software you must keep in mind following six aspects:
- Needs and Strategic Goals: You must decide according to the existing organizational culture, standards, and management workflows with focus on ‘what to be achieved’. You must fair idea about the current needs, future needs and goals.
- Strategy: You must be strategy ready for implementation of a new culture of performance assessment. The performance management software should be capable to measure the performance of all the departments because each department has different metrics to be measured.
- Standalone or a Suite: The performance management software can be designed as a standalone unit or it can be integrated in to the existing HR management software. If you are not using any HR software yet, you may think for outsourcing comprehensive HR management suite that takes care of performance assessment and improvement needs also.
- Users’ Experience: Experience of team leaders, employees and managers decides the suitability of performance management software. The performance management software with streamlined interface and easy navigation increases the user participation to make it a successful investment.
Companies like Apple, Google, and Netflix are 40% more productive than other companies because of using the mix of performance management strategies focused on trust-building and organizational structure.
Budget: The cost of performance management software varies at large according to the in-built features and functionalities, so, you need to fix your requirements according to the budget constraints.
Tailor Your Performance Management Software for Desired Benefits:
The advanced stage performance management software can be tailored as suite for having integrated dashboards for HR management, talent management, relocation management, compensation management, employee engagement management, training eLearning management and corporate learning management systems (LMS) etc.
Continuous performance management improves regular dialogue between the management people and employees. It builds a commonly accepted system for regular check-ins for feedback, reviews and achievements that makes the performance improvement process transparent.
If you are experiencing low employees engagement, high ROI over the projects, too much engagement of HR professionals in paperwork and/or to much-occupied managers in evaluation of reports, it is time to outsource the best-tailored performance management software that also helps for deciding on promotions, compensation and even for terminating an employee.
According to Zion Market Research report, ‘Global Performance Management Software Market’ may reach up to USD 5,633 Million by 2026. Innovation and wide-scale acceptance of cloud storage is also a key contributor to the growing use of performance management software in industries. Performance Appraisal Software is the most implemented performance management software feature.
The increasing investment into ‘Performance Management Software Integration’ is the validation of the delivered benefits that make it fit for diverse expectations, needs, and affordability of businesses.