Many employers are seeking a more effective approach to performance management than the cumbersome processes of the past—processes that often left management exhausted and employees unenthused.
The good news is, employee performance management software has come a long way. Today’s performance management solutions are built around much more than an annual performance review between manager and employee, with HR greasing the wheels.
The best employee performance management software is designed to inspire and motivate employees, while ensuring organizational goals are being met on every level. It simplifies life for HR staff and managers—less paperwork, anyone? And it serves as a conduit for ongoing manager/employee feedback and engagement, while presenting employees with year-round opportunities for skill development.
But not all employee performance management software is created equal or offers similar capabilities. Here are four key elements to look for when evaluating various systems.
Employee Performance Management Software Should Automate the Review Process
If you’re still following a largely manual performance review process, you know how time-consuming it can be across the board. Hours are spent preparing forms, routing them and waiting for them to be completed and approved. Round and round we go!
An automated performance review process streamlines that workflow and slashes the amount of time spent shuffling documents and files. It also ensures that the performance review process is consistent throughout the organization and that best practices are followed company-wide.
Well-developed performance review software uses features like e-signatures and automatic notifications/reminders to keep the process moving. It will offer clear goalsetting capabilities, ensuring each employee’s goals are aligned with those of his/her team, department and company, plus a wide selection of time-saving job-specific templates.
And because reviewing performance has become less of a once-a-year exercise and more of a year-round conversation between managers and employees, advanced employee performance management software offers journaling capabilities, so managers can enter performance-related notes and add attachments throughout the year and employees can comment, too.
Employee Performance Management Software Should Facilitate 360-Degree Feedback
Many HR experts find 360-degree feedback valuable because it adds dimension to the performance review process. Instead of basing an entire performance review on an employee’s manager—which can be particularly difficult to do when the manager is remote!—360-degree feedback also collects data from coworkers, direct reports, even customers.
Is it effective? Yes. In studies, peer ratings have proven to predict an employee’s future performance with exceptional accuracy, according to a study by the U.S. Office of Personnel Management.
A robust 360-degree feedback program will offer you a great number of survey questions to choose from and make it easy to deploy throughout the organization, even issuing reminders to complete the survey before your chosen end date. It then uses the collected data to produce a summary report of feedback to be shared with the employee and his/her manager.
Employee Performance Management Software Should Link Performance to Compensation
While the vast majority of employers link performance to compensation, for some inexplicable reason, many employee performance management software products do not, creating a whole lot more work for HR as well as the potential for errors in executing compensation changes.
However, when your employee performance management software includes compensation tools, such as a “compensation dashboard” or “compensation translator,” it’s easy to link performance to pay. In this event, the system will make automated compensation recommendations, factoring in an employee’s pay grade, completed performance review and overall ratings, ensuring consistent compensation strategies are employed throughout the organization.
Furthermore, advanced compensation capabilities will allow employers to build an unlimited number of pay grades and automate the raise approval process for speedier signoff—something every employee appreciates.
Employee Performance Management Software Should Integrate with Learning Content
Offering a path of career advancement is a proven way to motivate—not to mention retain—valued employees, and that means providing continuous opportunities for learning and skill development.
These days, a great deal of continuing education happens online. For this reason, some employee performance management software actually offers a portal to libraries of online learning content and outside courses. In addition, it allows employers to upload their own proprietary educational videos and presentations so employees can access them independently.
Furthermore, based on an employee’s performance appraisal, an advanced performance management system can actually recommend specific learning activities that will be most meaningful.
And of course, it allows managers and HR to see who is taking advantage of what and how they are progressing—because performance management software should be all about encouraging employee development!
If you’re looking for employee performance management software for your hourly workforce, learn how EPAY’s human capital management system can help. Our performance management solution includes the four key elements described above, and our entire system is designed for the hourly workforce. Learn more: schedule your personalized demo.