20 Apr Why Are so many Companies Using Employee Performance Evaluation Software?
Lately, the performance management overhaul has become a big topic. That’s because something of major significance is happening in the business world: more and more companies are replacing the antiquated, ineffective performance rating approaches with a new, ongoing approach to managing their teams: employee performance evaluation software.
Here are a few reasons why:
- It Improves Communication to Drive Performance
Harvard Business Review reported that by early 2015, 30 major companies representing more than 1.5 million employees in total were using an ongoing approaching to performance management. One common finding among these companies: this ongoing approach to performance evaluation lays the foundation for stronger communication between managers and their teams, which drives engagement, helps to develop employees, and ultimately, boosts performance.
- It Creates A Well-Rounded Performance Management System
According to Forbes, performance evaluations are only effective when they are incorporated into an effective performance management system. Performance evaluation can’t be a static, yearly event, because employees need to receive timely feedback in order to stay engaged and motivated. Managers can make performance management an ongoing activity with the tools provided by performance software such as 360° software and real-time reporting. When combined with the other critical components of talent management, such as goal setting and tracking, compensation actions, and employee development, this creates a powerful performance management system that helps achieve impressive results.
- It Encourages Coaching
General Electric recently rolled out a new performance management system to encourage their managers to coach and exchange regular feedback with employees, after decades of using the rigid “rank and yank” system to discourage poor performance. And for good reason: managers who coach their employees to perform better are much more likely to witness their teams succeed. When you use performance management software, your managers are providing frequent, coaching-style feedback to guide their employees to do better instead of micromanaging. Expectations become clearer, goals become more achievable, and your company is able to complete its most important objectives, all while allowing employees to become more engaged and committed to their work because their managers are showing an active interest in their success.
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. To learn more about our Performance Management Software, PERFORMview, click the button below!