6 Vital Reasons Why You Need Performance Management Software in 2024

by Srikant Chellappa Jun 20,2021

The People Strategy Leaders Podcast

with Srikant Chellappa, CEO

Covid has changed the way we work today. We all know that! As everything turns virtual, it’s become necessary to have a performance management process in place. If cultivated right, it motivates and aligns employees to the company goals. For those many companies who are still using traditional paper- based processes to track and record performance management, it’s highly difficult to extract or collate data. Now that the world has moved to remote working, why not change with the situation and embrace more efficient business processes?

Also Read: Employee Feedback: The Do’s and Dont’s Of It

Earlier, annual performance reviews were the indisputable norm, and it used to be dreaded by both the managers and the employees. Today, though, performance management has evolved tremendously, making it more flexible and inclusive. Traditional performance processes work fine when organisations are small or have a very simple review process. But once organisations get bigger, and job roles get more complex, there’s a need for software to enhance the process, or rather, to ease the process.

We would like to elaborate on how real-time performance management software can benefit your organisation. Here are the reasons:

Simplifies The Process

Depending on the choice of software, a performance management software can be extremely easy to use. All the things required for a review cycle are in one place. Most of the processes are automated, and once the review information has been submitted–start dates, review templates etc, there’s not much else an HR manager has to do, except oversee the entire process.

Even better, HR managers don’t have to frequently remind employees to complete their reviews. Most software has built-in reminders that will urge employees to complete the review process. The software takes the burden off HR’s shoulders and instead allows them to focus on the outcome of performance reviews.

Has Multiple Features

If you think that a performance management software focus solely on the review processes alone, you are mistaken. They offer other features as well, such as the ability to share feedback, goals and objectives, an LMS, etc. All these features are often integrated so that when the review process is going on, users can view an employee’s complete profile, such as the feedback they have received, the goals they could complete, to what extent they could complete their goals, or even what new skills they have learned.

Performance management software offers a macro view of an employee’s performance and helps others make informed decisions during the review process.

Also Read: Performance Management Trends In 2021

Makes Goal Assignment and Alignment Easy

Imagine a situation, wherein a remote employee is expected to put in his or her 100% effort but is not sure what’s the end result of this. Do you think she or he will be able to put in the right kind of effort? Performance management software enables the company to have clear-cut goals and makes them visible to every employee. Every worker gets to see how their effort can help the company achieve higher-level goals.

When they see how they can make an impact at the individual level, it makes them want to strive harder. Managers can easily keep a track of their team performances remotely and can provide feedback accordingly.

Stores Historical Data

The best part about real time performance management software is, you can access data anytime, and it helps to make quick and efficient decisions. They provide old as well as new data in one place, for you to compare and understand patterns and identify any gaps or bottlenecks. It becomes easy to track the performance level. It helps in making better decisions.

Also Read: OKR Examples For The Human Resource Team

Detailed Analytics and Insights

Performance management software can provide a very insightful look at an employee’s performance. This is not just related to ratings and feedback they have received over the past years. Rather, many performance management software also offers performance analytics that track employee performance in graphical chart format, calculate leadership potential, etc. This way, you can also track how well an employee is performing.

These employee data can help others make informed review decisions when reviewing performance. And they can also help managers make compensation decisions or even promotion decisions.

Increases Efficiency Of The Process

When everything is in one place, a lot can become easier. Conducting the review process through performance management software offers HR managers greater control over the entire process. They can control when the cycle starts and when it ends, how many employees should participate in the cycle, etc. HR managers can also restrict review visibility, call back reviews etc, thereby also maintaining a fair and just review process.

Are you looking for a performance management software? Connect with our experts.

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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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