22 Jun Why Performance Management Software Is Replacing Yearly Reviews
In recent years, many companies have been replacing their yearly reviews in exchange for a more agile solution that better fits the pace of their existing processes and meets their employees’ need for feedback. The solution is performance management software, and for many businesses, it’s an invaluable tool that directly impacts not only performance, but also employee engagement levels and bottom-line results.
If you’re still using annual reviews as your primary strategy for addressing performance in your company, it’s time to rethink your performance management system. Here are just some of the benefits that performance software provide:
- A Better Way to Monitor Engagement: According to BizEDGE, a performance management system needs to monitor employee engagement levels on an ongoing basis, not just one time per year. Yet, if your managers are only taking a good, hard look at their employees’ performance one time per year, it becomes very difficult to measure how engaged they are. Performance software, on the other hand, gives real-time updates about teams’ performance so that managers can watch for any red flags that might indicate dropped engagement levels.
- A Stronger Manager/Employee Relationship: Independent Online reports that a deteriorating relationship with their direct supervisor is a common reason for employees to disengage. It’s no secret that both managers and their associates tend to approach the annual review with dread. Yet, with the real-time alerts provided by performance management software, managers are encouraged to exchange regular, timely feedback with their associates, which strengthens the relationship between the two parties. Ultimately, the more often managers and employees exchange feedback, the more comfortable it will become for both.
- An Ability To Spot Your Best Performers: As Evil HR Lady puts it, it’s not hard to spot your best sales associate, but how do you identify the employees who are truly the most valuable for your company so that you can hire more like them? Certainly, checking in on performance one time per year won’t do the trick. Instead, it’s all about taking an ongoing approach to management which performance software supports so well. That way, managers can actively monitor who’s contributing the greatest value to the company year-round, not just during the review period.
These are just a few of the ways performance management software outdoes yearly reviews, but there are many additional ways in which it can foster engagement and motivation to help your company achieve aggressive goals and become more performance-driven.
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!