Why do performance reviews get a bad rap? In short, previous generations of performance management applications have failed to meet an organization’s needs because of high costs, poor implementation, and lack of integration with an existing HR infrastructure. Coupled with the fact that in previous surveys, like the one on Employee Recognition Programs by the Society for Human Resource Management, only half of HR professionals say annual performance reviews are an accurate appraisal of an employee’s performance. Additionally, 49 percent of HR professionals believe their performance-review process needs to be re-evaluated.
The benefits of performance management technology
If your organization is looking to improve the performance review process, implementing performance management technology can have many benefits. For example, HR tech:
Simplifies the evaluation process for managers
Performance management systems reduce the amount of time that managers must spend on the administrative aspects of employee reviews. This enables them to spend more time on face-to-face meetings with staff, where they can discuss strengths, weaknesses, and goals for the upcoming year. Alerts can also be configured, which give managers greater awareness of what needs to be done and when for employee evaluations.
Employees feel a greater sense of alignment with the organization’s mission
A structured performance evaluation process can lead employees to a better understanding of the organization’s direction. For example, each employee can, as part of the evaluation process, create goals and align them with the overall business goals. These employee-level goals are documented in the performance management system, so both managers and staff can refer to them over the course of the year.
Makes employees more active participants in their reviews
Online performance management systems make it possible for employees to have constant access to their reviews and holds them more accountable
Communicates clear expectations to employees
Without frequent feedback, it’s hard for employees to know whether they are meeting expectations for job performance. A Performance Management system brings that knowledge to the forefront.
Demonstrates where organizational strengths and weaknesses are to top-level exec’s
Performance management systems make it easier to assess performance for an entire organization and take the appropriate action. For example, groups that have high turnover and low employee evaluation scores might benefit from leadership training. Additionally, comprehensive reports can be generated from performance management systems to keep senior executives informed about various organizational metrics.