6 Reasons To Invest In A Performance Appraisal Software

by Srikant Chellappa Sep 30,2020

The People Strategy Leaders Podcast

with Srikant Chellappa, CEO

“Talent is one of the last frontiers for differentiation. Any company can have a patent or produce a product. The difference is the quality of that product comes with the value of the talent you have.”–Elaine Orler, President and Founder of the Talent Function Group .

Measuring employee performance is one of the crucial objectives for every organization, as employee performance directly affects their success. Globally, organizations are ditching the traditional way of managing performance and are adopting the modern approach by using performance appraisal software. It is not only comprehensive but also consistent and balanced when compared to the traditional annual or half-yearly reviews.

Also Read: Virtual Onboarding:A New Reality

Performance appraisal software is known to increase employee engagement, boost motivation, and facilitate two-way communication. Not only this, it helps in better management of employees and land also increases the efficiency and accuracy of employee performance reviews.

If you still haven’t invested in a performance appraisal software, read on to know why you should.

Real-Time Feedback

Feedback is critical to driving employee engagement and retention. For feedback to be effective, it needs to be shared frequently and on the spot, be it positive or constructive. Performance appraisal software makes sharing and receiving of feedback a lot easier for both the employees and their managers. It allows for consistent and ongoing sharing of feedback on a real-time basis. Instead of waiting for the performance reviews, managers get to share feedback with their employees anytime and from anywhere. Similarly, it gives employees the flexibility to ask for feedback whenever required. Timely feedback helps good employees become better, and the ones who are not up to the mark they get a chance to improve. We can say that it has been rightly said by Ken Blanchard (American Author) that, ‘feedback is the breakfast of champions.’

Thus, a performance appraisal software not only facilitates two-way communication but also improves collaboration, which in turn improves employee engagement and retention.

Also Read: How Important Is Feedback In Today’s World?

Employee Recognition

Just like feedback, employees feel the constant need to be recognized for their work. Receiving timely recognition boosts employee’s confidence, and they get validation for their work. Celebrating the wins of your employees keeps them motivated and engaged continuously. Most of the performance appraisal software that is available in the market have a built-in employee recognition and rewards module, which will allow you to recognize and reward your employees instantly for their work. For example, using tools like Engagedly, you can publicly praise or award points to your employees.

Also Read: Employee Rewards and Recognition For An Engaged Workforce

Goal Management

Goal management is an important process for all organizations, as it helps employees to be focussed on a common goal and helps in measuring the overall progress of the organization. A performance appraisal software enables employees and the organization to set clear, SMART, and dynamic goals for themselves. In addition to this, it allows individuals to cascade their goals and also align them with the organization’s goals. This helps everyone to work towards a common goal.

360 Degree Feedback

Employees not only love receiving feedback from their managers, but they love it from their peers too. The 360-degree feedback is increasingly becoming popular among organizations and is a common module of most performance appraisal software. In this process, employees receive feedback from multiple audiences, which includes managers, peers, subordinates, vendors, and customers. Employees get an overall and balanced perspective of their performance. Moreover, it bridges the gap between what an employee perceives and what others think about the employee. It also allows employees to share feedback about their managers anonymously without the fear of getting subjugated.

We can definitely say that 360 degree feedback not only helps in self-awareness of the employees but also promotes an open culture in the organization.

Also Read: Know What Features To Look For In A 360 Feedback Software

Transparency & Reduced Bias

Performance appraisal software offers a great deal of visibility to everyone in the organization. Every stakeholder has a clear view of the progress of goals, feedback, and ongoing projects. Moreover, as a performance appraisal software logs in data consistently, it reduces the chance of any biases or favoritism towards an employee. This leads to creating a sense of trust and open culture in the organization.

Also Read: 8 Key Features To Look For In A Performance Management Tool

Insightful Analytics

Performance appraisal software provides detailed insights about an employee’s performance in the form of detailed graphs and charts. It helps employees to make decisions about their skills and developmental needs. Additionally, it helps managers and organizations to make compensation and promotion related decisions during the time of annual or half-yearly performance reviews. Not only this, it also saves the employer’s time during the time of reviews as all the information regarding employee’s performance is already there in the performance appraisal software.

Engagedly is offering a suite of products part of its Remote Work Toolkit free to any organisation, until Sept 30th, 2020. 

The Coronavirus has affected the way we work today and for months to come. Unprecedented events require unprecedented measures. We at Engagedly believe it is our responsibility as socially conscious corporate citizens to help equip organisations with additional tools and resources during this time of crisis.

Do you want to know how Engagedly can help you with seamless Performance Management? Then request us for a live demo.

Request A Demo

Srikant Chellappa
CEO & Co-Founder of Engagedly

Srikant Chellappa is the Co-Founder and CEO at Engagedly and is a passionate entrepreneur and people leader. He is an author, producer/director of 6 feature films, a music album with his band Manchester Underground, and is the host of The People Strategy Leaders Podcast. He is currently working on his next book, Ikigai at the Workplace, which is slated for release in the fall of 2024.

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