Performance management, for those in the dark, is merely a ritual where the manager selects a few boxes. Managing performance is a meaningful exercise, thanks to which employees can feel valued. It also gives the employees some direction and motivates them towards achieving big business results. To measure performance there has to be a reliable set of metrics that are measured. It should also analyze the results and set up proper goals which will help in improving constantly. However, when only annual appraisal forms are filled out, the process becomes pretty tedious and difficult, as well as inefficient.
According to the Journal of Personnel Psychology, there has been a lot of negative response to the critical feedback that a person receives, according to a survey conducted in 2013. Only 50% of HR professionals state that employee performance is accurate. The remaining believes that the system in existence should be reevaluated.
Improving the Efficiency of the Performance Review System
To make performance reviews more effective, the following strategies can be implemented.
- Collaboration: by collaborating with several employees, it is possible to obtain a fair review of an employee.
- Organization: The contribution of the employee should also work on achieving the goals of the organization and work on making it better. There should be reports to measure performance during their work.
- Turning Feedback into Ideas: The problem with negative criticism is that it doesn’t tell how it has to be overcome. When ideas are given to make it positive, the system will definitely be a success. HR technology also helps the employees in working towards the betterment of the employee.
- Open Communication: Employers and employees should have open communication between them. There should also be transparency. This will help to fit the goals of the employee and the organization to fit with each other.
- Improving Feedback: when feedback is given, there has to be a real-time check to see if it has been well received. Studies show that less than 2% of employees indulge in correcting themselves based on the feedback they receive. For an employee to be most effective and reach his highest potential, they must receive timely feedback.
Benefits of HR Software in Performance Management
Technology can help in reducing the burden that performance reviews cause. It is an important component that helps in increasing growth. The major benefits of performance management are
- Efficient and Fast: The performance of the entire organization and all the employees can be initiated by a simple click of a button. Forms do not have to be printed and circulated; rather they can be circulated digitally. Appraisal questions can be viewed using the software or can be mailed.
- Online Collaboration: The employees, as well as the managers, can work on the questions without having to leave their desks. In case the HR software is compatible with the mobile, the performance analysis can be done from anywhere on the move.
- Accurate Data: With the help of the software, it is possible to get accurate feedback that is 360 degree right. Performance data can also be analyzed by other colleagues as well. It will remove the bias from the equation and give more scope for an accurate view of the employee’s performance.
- Visual Analysis and Scoring: It also makes it easier to analyze all the data that is available. The most difficult part of performance management is analysis. It means that the data has to be put into a format with which it can actually be used. The numbers will be crunched by the HR software and the best and the lowest performers can also be filtered. It makes it easier to decide who has to be trained and who has to be rewarded. By having a track of all the data available, it is possible to analyze and know which areas need to be worked on. The results can also be shared among peers to discuss it.
- Result Tracking: Following the review, some change has to be implemented to help improve. In case the software is good, it will show the effect of the strategies. This way, performance can be evaluated year after year.
To make the performance appraisals meaningful, technology has to be used effectively. Technology can help in having more information by periodic and more frequent appraisals as well as with the help of analysis that is more detailed. To truly be effective, it is important to appraise performance more than once a year. It should preferably be done once a quarter or at the end of every project. This way, employees will constantly be on their toes and are evaluated periodically.
Improve Performance Review System
By implementing the steps mentioned, first of all, the performance review system must be improved. Once it is improved, the focus must shift to the feedback questionnaire. It should be simple yes or no questions and feature mostly checkboxes. It makes it easier for the employees and the managers to fill it up. There are several products that are available which make use of the performance management features in HR software. Some software takes you through the process from start to finish, apart from only offering digital forms. It is also possible to build questions on the core values of the company and goal setting which will help to improve performance once the review is done.
The performance review is an important factor as it will decide the role that an employee would play in the organization in the days to come. Most HR software also comes with comparison tools that can help the management and HR to analyze data easily. They are very insightful and help in writing reviews. It also helps in managing the competency of the employee. Performance management audit tools are also available for enhanced quality and effectiveness. Performance management is a crucial step that should be incorporated into all organizations to help the organization and the employee to gain some structure for growth.