Performance Management Software: A Buyer’s Guide

by Srikant Chellappa Jul 18,2021

The People Strategy Leaders Podcast

with Srikant Chellappa, CEO

In today’s remote workplace, the need for a performance management software has become unquestionable. It has made managing remote teams easy and effortless. Even small to midsize businesses who were using traditional processes before COVID have shifted or are considering the shift to using a performance management software.

But how to select the best one? 

This is a good question to ask yourself before you embark on the hunt for performance management software.

Performance management is not just about reviews. In fact, performance reviews make up a very small portion of the entire process. Good performance management includes continuous feedback, consistent goals and objectives, gamification, frequent communication and learning and development. The software you are looking for should have these modules and additionally, should support integration with each other. 

Also Read: Performance Management Trends In 2021

Here are our tips for choosing the right one for your organization!

SaaS based or Installed Application

Choosing a cloud-based application or software that must be installed manually does make a difference when it comes to performance management software. Cloud-based software applications do not need any set-up. All they need is a device and a connection to the internet for users to access them. On the other hand, software applications which need to be installed require a set-up process that can be short or lengthy depending on the size of the application. We recommend using a cloud-based software application. 

User Friendliness

We cannot stress how important it is that you pick a performance management software that is easy to use. The main problem with traditional performance management processes is that they can get tedious and cumbersome. When you begin using a software and find it even more tedious than your previous process, you’ve already lost the battle. Do not just request demos and download brochures and decide. Do your homework and request a free trial. And if you have the option of doing so, take the application for a test run with a pilot group.

If your software of choice causes more confusion, you know you need to look for something different.

Alos Read: 5 Things To Looks For In An OKR Software

Does it meet expectations?

When choosing performance management software, it is absolutely vital to have a software that aligns with your own expectations about performance management. It helps if you have a list of what you would like to change in your performance management process or what you want to introduce to it.

If your list of requirements includes, a flexible and customizable performance module, integration with other secondary modules, a goals module, then you should look for software that fits those needs to a T. Because it is absolutely possible for software applications to be great in every which way and yet be completely unsuitable for your own organization and performance management culture.

Supports Flexibility and Customization

For a software to be useful, you need to be able to customize it to serve the needs of the end users. Performance management software that lends themselves to flexibility and customization is what you should look for. Because software makes it easier for organizations to enact change when it comes to the review process. If they can be tweaked to suit your needs, that’s how you know the software is going to be a good fit.

Easy Integration With Existing System

Before choosing a performance management software, make sure it integrates seamlessly and is compatible with any existing system in place. It should sync easily, provide data security, and is compatible with other employee management software. Otherwise, it will require too much IT support and effort before being put to use.

Also Read: How To Support Mental Health Of Your Remote Team

Performance Management Software Should Be Cost Effective

The software is only effective when besides being the right match for your organization; you also receive excellent customer support from the vendor. Good software providers are willing to meet organizations halfway and ease the transition process. Though it might be explicitly stated, take the liberty to check with service providers if they are willing to help you with on-boarding, support, technical issues etc and to what extent do they provide customer support?

Optimized Pricing

We cannot stress this enough but do not blow your budget on software you cannot afford or vice versa. The beauty of the performance management software market is that there is something suitable for everyone in it. Enterprise class software may not be the best fit for you, if you are a small-sized business. Similarly, a simple one may not suit the needs of an organization that has some very specific needs and requirements.

Want to know about Engagedly’s real time 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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