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The benefits of performance reviews are well documented and thanks to technology, they can now be more engaging, even fun. A good performance management system brings so much more than a way of automating the performance review process.
Let’s take a quick look at the elements of a performance management system before giving you some tips on selecting the right one.
An Effective Performance Management System Should Have These Attributes
There are many performance management systems and tools on the market today. The broad range of capabilities can be overwhelming.
1. Goal and OKR setting
There is a direct link between performance, goals, objectives and key results (OKRs). Without them, you’d struggle to gauge whether performance has been up to the mark or not.
For a performance management system to be effective., it has to provide OKR setting and monitoring functionality.
2. Performance tracking
Performance tracking is a key element for any performance management system. You should be able to track critical areas of employee performance. Areas would include those that are integral for organizational success and the professional development of team members.
3. Gauging pulse
You’ll be able to use the performance management system to understand how team members feel about their performance, the organization’s culture and any other aspects that might affect performance.
4. Performance analytics
An effective performance management system should provide key insights based on the performance. With this information, you can identify areas that need work and commitment as well as those that are in good stead.
5. Guided conversations
With the right performance management software, conversations between management and employees will be meaningful.The right message will be sent across because there will be guided templates based on AI driven recommendations.
How to Choose the Best Performance Management Software?
Now you understand the key elements of an effective performance management system, let’s give you a checklist to help you make the right choice.
1. What are your pain points?
A good place to start is to examine your current performance review process and document where it’s going wrong. For example, is it a lack of time or bandwidth? Is it perhaps a lack of resources or the general ad hoc approach that’s being used to measure performance and provide feedback?
2. What do you require?
Once you’ve created a list of potential pain points, it makes it much easier to understand the top areas where you need interventions. A performance management tool can have a plethora of functions and a list will help you differentiate those that are core and those which are peripheral.
3. Which integrations do you need?
You must choose performance management software that integrates with the tools you already use. For example, you might already use Slack, MS Teams, Gchat or project management tools such as Jira.
If you can integrate all your tools it means you don’t have to toggle between different platforms and could increase the level of participation.
4. Do you have any scale up plans?
Are you likely going to add members to your team as your business grows? You should try to gauge future requirements as well as the immediate here and now.
5. Are real time reports essential?
Ideally, your performance management tool should be able to gauge and track performance and provide reports in real time. Such information allows you to monitor performance trends.
6. Do you require heatmaps?
Heatmaps help you gauge the pulse of your organization as a whole and create a future plan of action based on industry benchmarks.
7. What is your budget?
Your budget has to be a key point on your checklist because it could determine what functionality requirements are included in the system. If you’ve got to work with financial constraints, you may have to add or delete from your list.
Whatever your budget, look for a platform that offers a trial period. That way you’ll be able to gauge its user friendliness, intuitive capabilities, and overall compatibility.
Final Thoughts
Now you’ve got a checklist to work with, you’re ready to start evaluating various performance management tools and systems and find the best one for your organization.
When you contact various providers ask for a demonstration or pilot. It’s also important not to get distracted by lots of bells and whistles that you really don’t need/
Once you’ve had a trial run, talk to others who use the vendor before making your final decision. That way you’ll get an understanding of the level of customer service and technical support.
Finally, look for providers who have worked with organizations like yours as this will address any workforce issues you’ve prioritized. At the end of the day, what you want is a performance management product and partner that provides the features, support, and guidance you need.
