Performance management software can help companies to keep track of employee performance in a way that is quantitative and measurable. This creates a trackable metric that shows how well employees are meeting goals. It’s important to invest in the right software. Our buyer’s guide will walk you through the steps of finding the performance management software that will best suit your organization’s needs.
What Is Performance Management?
Performance management is the process of tracking and analyzing employee performance. It also includes setting expectations and goals for each employee that align with company strategies and objectives. Employee performance reviews and feedback play an important role in performance management.
Is Performance Management a Separate System?
There are standalone performance management systems available. Other types of software systems, like an HRIS or HRMS, may include performance management features and tools for you to use.
How Does a Performance Management System Work?
A performance management system or tool has three primary components:
- Goal management
- Goal monitoring
- Performance assessments
Goal Management
Knowing exactly what is expected of them is an important part of employee performance and engagement. Staff can’t easily meet goals if they don’t know what they are. A performance management system helps to make goals clearer to employees as well as ensure that they’re aligned with the organization’s overall objectives.
Goal Monitoring
Your performance management system should also monitor those goals over time. This involves tracking if employees are meeting their goals. If they’re not, the goals might be unrealistic or the employee may need additional training.
Performance Assessments
Feedback is a vital component of employee performance. They need to know how they’re doing so that they can make changes and improvements as needed. Feedback throughout the year rather than just once per year can help them to implement changes in real-time when they’re most effective.
Why Use Performance Management Software?
Using software to manage employee performance is convenient, but it also helps to improve productivity.
Improve Employee Performance
A performance management system can help employees clearly understand expectations and goals and see how well they’re meeting those goals. Employees can receive feedback on their performance that can help them to improve more quickly.
Succession Planning
Performance management tools are also helpful in succession planning. You can see which employees have what skills and how well they’ve been meeting their goals to help determine who is the best fit for promotions.
Hiring Strategies
Because a performance management system tracks employee skills and performance, it can also help you to see where your company may have a gap in skills coverage.
What Are Common Performance Management Features?
Each performance management system is different, but there are some features that are common across all of them.
Performance Tracking
Any good performance management system should be able to track employee performance in a quantitative way. This data would contribute to feedback and performance reviews as well as to succession planning and hiring.
365-Degree Feedback
365-degree feedback can help offer employees more in-depth feedback. This can help them to better understand their goals and what they can do to maximize their performance.
Data Analysis
Because a performance management system quantifies employee performance, a performance management system should also be able to analyze that data and provide valuable insights to HR and managers.
Software Integrations
If the performance management system is a standalone software system, it should be able to integrate with other systems you’re using. This can reduce errors caused by manual data entry.
