Each organization designs a performance management process that is uniquely suited to their employees. From goal setting and feedback to performance conversations and annual reviews, no two processes look exactly the same from one company to the next.
Yet, there is a common denominator for organizations with high-performing teams – technology.
HR technology is one of the most innovative categories of tech today. There’s a growing emphasis on the employee experience, as more and more companies battle job hoppers and a lack of available talent to take their places.
Performance management software enables a best-in-class employee experience. It creates transparency around both individual and company goals, tracks critical feedback conversations and compiles employee data to drive better downstream decisions around compensation and more. The result? Better retention and engagement, and as a result, a strong employer brand that attracts top talent.
There are five distinct advantages to a technology-enabled performance management strategy that cannot be replicated with a manual process.
1. Access to real-time information.
In the fast-moving world of employee management, time makes all the difference. Whether it’s addressing negative feedback before it affects customers or recognizing employees who achieve a big goal, access to real-time data helps managers react quickly to employee performance.
2. Easily identifiable performance trends and anomalies.
For HR leaders, a data-driven process allows them to shine a spotlight on the areas of performance they need to see most. Giving them back the time previously spent on tracking down trends or anomalies means they’re better able to address issues or adjust processes.
3. Development of more complete performance profiles.
Technology keeps everyone aligned and on the same page when it comes to performance. Manual processes leave too much to chance, interpretation or subjectivity. Seeing goal progress and achievement, all peer and manager feedback and review data in one place with the click of a button equals 100% transparency around performance. (And, consequently, why an employee is or isn’t getting that bonus, raise or promotion.)
4. An accurate measurement of usage.
Is your performance management process working? If no one is using it, the answer is no. With a manual process, it’s impossible to track which individuals and teams are setting and tracking goals, giving or receiving feedback or having performance conversations. Technology can give HR leaders a snapshot of usage, allowing them to determine which processes need to be tweaked or when a training or refresher course might be necessary.
5. Audit trail access.
Keeping digital performance records leaves nothing to chance if an employee feels unfairly assessed or wrongfully terminated and chooses to take legal action. Having this information at the ready can save HR and business owners from a giant, expensive headache down the road.