For any business wanting to grow and operate successfully by consistently generating profits, monitoring and keeping a close eye on employee performance on a regular basis is essential. Thanks to efficient modern digital technology, today there are lots of helpful tools and software that businesses can use to assess the company and employee performance.
Continually monitoring staff performance allows businesses to promptly intervene and implement the necessary changes and provide staff members with useful feedback and support. Performance management software is often used by line managers to help them monitor and evaluate the performance of employees they are responsible for managing. Read on to find out more about performance management software and its benefits for businesses.
What performance management is and why is it important to businesses
Performance management is a corporate management tool to monitor and evaluate employees’ work and their contribution to a company. The staff are always at the beating heart at the core of any healthy business. The primary aim of performance management is to generate a working environment where people are able to perform to the very best of their abilities and produce high-quality work efficiently and effectively.
The main benefits for businesses of using performance management Software
Performance management is essential to businesses because it is a central component that works towards helping the company achieve its vision and meet its most important goals. Performance management systems help managers to create Personal Development Plans to help align individual employees’ goals with ambitions and the broader aims and strategy of a business organisation. If you work for a business interested in staff engagement and monitoring staff performance through using 5-star employee performance management software, you may want to take a look at the cutting-edge employee management software platform StaffCircle. Tools such as these offer many benefits, including the below.
A better tool for reviewing employee performance than annual reviews
In the past, workplace performance appraisals usually took place in the form of annual end-of-year performance reviews. However, annual reviews can be quite a limited method of monitoring and evaluating employee performance. Annual reviews are retrospective and unable to track performance in real-time and are criticised by many today for being overly focussed on the past.
Modern Performance Management software on the other hand allows businesses to continually monitor employee performance in real-time. This means management software be used to help managers make quick decisions on things they can alter in order to optimise employee output and performance.
Performance management software tracks individual contributions to a team, so managers are able to see which employees are performing to a higher standard and bringing in more results for the company than others. Performance Management Software helps managers to ensure the team is able to perform well and the organisation meets its company business goals and objectives.
Immediacy and the ability to continually monitor performance
In the world of today that is so dominated by the internet and social media, instant gratification and fast replies are something we have grown to love and become accustomed to as a society. Performance Management Software means managers are able to make changes and provide employees with feedback quickly, so they do not have to wait for around 12 months to receive important feedback on performance from managers. For example, if a manager can see that a project clearly isn’t going well by looking at the key performance indicators after 3 months, they can use performance management software to help them decide what adjustments to make, so the project performs better, or even abandon the project altogether.
Help businesses to reach their goals as an organisation
Key Performance Indicators (KPIs) offer metrics by which managers and employees can track their progress towards goals. KPIs provide businesses with a broad strategy with clearly defined targets and allow employees to manage their time and energy in the most efficient way possible.
Businesses rely on performance management software as a way of helping them to realise their various goals as an organisation. Different types of performance-based goals a business can use include:
- Time-based performance goals which are clearly defined and simple to measure or evaluate over a set period of time. Short-term business goals may be over a month or a quarter, whereas long-term goals are stretched over a longer period of time such as a year or several years.
- Employee goals which evaluate how well employees perform at specific tasks or duties.
- Process-orientated goals which are more instant and focus on successfully carrying out processes to achieve your goals and outcomes. For example, a manager in a marketing agency firm holding weekly meetings with the social media marketing team to catch up and keep track of the tasks currently in progress.
- Outcome goals that concentrate on completing a set task. For example, launching a new website by the end of the month.
Help managers to make decisions on adjusting employee performance goals
Managers can use performance management software as a tool to help them decide when to adjust employee performance goals. If a manager can clearly see that the business is drastically over or under performing, in that case they may need to make readjustments and changes to the initial performance goals that were set out.
Examples of things which may lead to a manager deciding to readjust employee performance goals include:
How family/personal issues can affect an employee’s ability to achieve their expected performance levels.
For example, a manager should take into account that a recent divorce or the bereavement of a family member may have an impact on an employee’s performance levels. In this case, managers should show compassion and sympathy towards the employee and perhaps arrange a friendly face-to-face meeting with the member of staff going through a difficult period in their private life.
Major changes in staff
These may require a readjustment of employee roles and thus a readjustment of a business’s employee performance goals. For example, if the staff turnover is particularly high at the moment and 20 employees left last month, a manager will need to readjust employee roles and the business’s goals accordingly to factor for these changes in the workforce dynamic.
Excellent or poor financial performance and changes in market share relative to competitors
These may mean readjustments of employees’ roles and performance goals are needed.
Changes that impact a business’s workflow
These include the restructuring of one of the business’s departments, and may affect the roles and expectations of employees and require the readjustment of performance goals.
Performance management software packages tend to be customised and tailored towards a specific company and helping them achieve their unique set of performance goals. Whereas performance management program general strategies are less specific and contain universal elements.
A company can use customised employee performance management software packages to help HR and management come up with and put forward actionable solutions to employees that will drive up performance levels and increase overall profits and sales margins. An effective employee performance management software package should help a business to quickly resolve any performance issues. Having access to a good performance management software package may therefore be the difference between a business surviving through tough testing economic times such as pandemics or global/national recessions, and a business closing down due to performing poorly over an extended period of time and constantly making financial losses.
So, there are various benefits for businesses to using digital technology such as employee performance management software to monitor and track employee performance. The software enables managers in businesses to stay on top of things and rapidly identify any shortcomings in employee performance levels.