As your business grows and evolves, one tool remains invaluable to your success: the people in the room. If you know how to harness the power of human capital, you’ll be able to rapidly reach your companies goals and objectives. The best way to optimize your team is to implement regular performance evaluations. With the help of an online performance management system, you can easily conduct employee performance reviews, gather and evaluate feedback, and organize your data better.
In the pandemic, it has become all the more important (and all the more difficult) to conduct employee performance reviews. With employees working remotely, it may be more difficult to see where they are struggling or support employee development. Performance management software can help you to gain insight into your workforce with smart questions and 360-degree appraisals.
What is a performance management system?
The main function of performance management software is to assist the HR department in laying out concrete performance expectations. This information can then later be used to make improvements throughout the organization. With a system like this in place, accountability is created, and employees are better equipped to understand their role and what is expected of them.
Now that you know what is performance management system software, we’ll dive deeper into the purpose of implementing one, the components, and most importantly, the benefits. We’ll wrap everything up with a quick summary of the types of systems used for performance management.
- Performance Appraisal System
- Types of Performance Management System
- ✔️ Implement software for performance management
Performance Management Software
With so many tasks on the go, it may appear unnecessary to spend time taking a step back to evaluate the performance of your team against the OKRs and KPIs set out. Although, if you want to continue improving, the task of evaluation is vitally important to your company’s success. If finding time to commit to this task, isn’t feasible, it’s time to invest in an employee performance tracking system.
What Performance Management System Components are there?
1. Objectives and Goal Setting
Without a clear vision for what you wish to achieve, you won’t get very far. The most important part of integrated performance management is setting concrete department goals that will not only motivate employees but align with the overall goals of the organization. Proper planning is key to improving productivity and it all starts with getting clear on what you hope to achieve.
2. Communication
Your key to successfully carry out a performance management scheme is to start with effective communication. Effectively communicating with your team will not only help bond your employees together, but it will also foster a supportive environment of openness and trust. Also, following up on strategic goals that have been previously set is a necessary way to gauge where you are. Don’t wait until the next performance review before you find out something is wrong. Identify the shortcomings now, and make the change as soon as possible.
3. System of Feedback
One of the most important components of a system for performance management is the ability to send out detailed feedback and suggestions on how the employee can improve on their performance. When an employee receives regular feedback and suggestions to improve they are more likely to boost their performance, and thus, contribute to the overall success of the company.
4. Reviewing Employee Performance
You can conduct quarterly or annual performance reviews depending on the size and structure of your company. These can be self-assessment reviews or peer evaluation, otherwise known as 360-degree feedback. Additionally, performance feedback, provided by a supervisor, is also common.
5. Learning Opportunities
Following a review, the staff member needs to know exactly what they must improve on. The onus isn’t only on the individual though for his. It is the responsibility of the company to offer the support and tools for the employee to learn and expand in their role.
What is Performance Management System Benefits?
What if you knew, you didn’t have to slow down, to make sure performance reviews got done? Now wouldn’t this be a joyous day! Saving time and streamlining your performance appraisal process is only one of the main benefits of implementing such a system. Are you still wondering what is performance management system benefits? Here are the most notable benefits:
- It generates a sufficient amount of data that allows a company to identify where there are gaps. It’s within these areas where the company can then invest in training, or coaching for their employees.
- Better results are achieved through regular assessment of current actions, and an analysis of ways in which improvements can be made.
- Shortcomings are easily identified and can be followed up with a strategy of where to best place one’s focus and attention.
- Performance reviews allow employees the chance of career development.
- Reviews initiate healthy challenges which the employee will be faced with. This results in a boost in employee motivation.
- Employee engagement increases when managers reward good. Also, employees often feel a greater commitment to their role and stronger investment in the company.
- Through the creation of performance KPIs, the company is able to set out a plan of action focused on its growth and success.
What we’ve shared above, are only a few of the main benefits of implementing a performance management system. If you want to find out more, head over to our blog on the benefits of employee evaluation.
Performance Management Types
You may be familiar with the traditional performance review process. This involves a rating scale (1-5 typically), measured against a set of standards. Each team member is then evaluated against every standard and reviewed based on their performance. These reviews are often conducted via an in-person interview, through observation of the employee doing their job, or a combination of the two.
There are generally 3 performance management system types of evaluation, which are as follows:
Manager Feedback
Although feedback from an employees superior is required for growth and to ensure OKRs and KPIs are being hit, it shouldn’t be everything. This method will work for small companies where employees have limited responsibilities. However, the larger your company is, the more full circle your review process should be.
Self Assessment
When given the opportunity to evaluate one’s performance, employees are often very open to point out the areas they are struggling with and where they can improve. In fact, when it comes to our job, it’s quite natural to be our own harshest critic. The way an employee evaluates themselves also provides the employer with valuable insights into how the staff member perceives their abilities.
180 & 360 Degree Appraisals
An effective performance review will give you a sense of the big picture. When a manager offers feedback to their direct report, it is considered a 90-degree review. In a 180-degree review, the employee will complete a self-assessment in addition to receiving notes from their supervisor.
The 360-degree review is the gold standard of performance reviews. This appraisal consists of peer evaluation, self-assessment, subordinate reviews, as well as manager’s suggestions. A 360-degree appraisal is generally the most accurate measurement of performance. This is because it measures employee performance from a variety of perspectives.
It may seem a daunting task to compile so many opinions, but an effective performance management system will help keep everything in order.
Implementing Performance Management Systems for Employees
No matter which type of employee performance review your company chooses to conduct, remember always to tailor the employee performance evaluation to suit your business’s needs. You probably don’t have unlimited time to manage performance reviews, which is why using a high-performance workday performance management system will help you gain insight into your workforce without losing too much time.
With Factorial’s performance management system, supervisors can select reviewees and as many reviewers as they’d like. They can create multiple-choice, short-answer, or rating questions that really get to the heart of the matter. Factorial will notify reviewers when it’s time to fill out a performance evaluation and employees will be able to access forms directly on the platform while supervisors track their progress. Help employees reach their goals with a performance management system that works.
