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Why does your company need performance review software?

  • Rating — 5 (1 vote)
  • by Anna - Technology Author and Strategist
  • Updated on June 22, 2020
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    10-11 minutes

The performance review is crucial for businesses of different sizes since it allows to assess and reward employees properly for their work. Thanks to performance appraisal business owners can motivate their employees, improve overall business efficiency, set new bigger goals, and achieve business growth.
So basically you need a holistic report or feedback on the basis of which you can in a formal, objective, and standardized way compare your employee’s achievements. Those reports or feedbacks are usually created by head department managers of the company and they can cover several areas:

  • Soft skills. This criteria helps to identify how your employees communicate and cooperate with each other, and whether you’ve set correct learning objectives for them. Soft skills are no less important than the professional skill set of your workers since business implies team work towards the main goals. 
  • Work efficiency. For different businesses, this criteria can differ and be identified by various numeric indexes. For example, if you are involved in a supply chain, then probably you expect a certain number of sales from your managers or a certain percentage of income each of them should bring due to their daily work. If your business is about providing services and you have call agents, then you may expect them to make a certain number of calls and expand your client base by adding contact information related to new potential customers. By collecting exact numbers and performance rate figures in a report it gets easier to see the progress your employees make. 
  • Uncountable performance indexes. This criteria allows you to check whether your employees are doing good and complete some short-term targets. Let’s say you have managers who are responsible for customer satisfaction. It may be hard to provide any countable indexes related to their overall work, but if you set a short-term objective, you can then easily track if a manager knows what he is doing and if his actions are positive for the company. 

Every business may have its own special criteria that it needs to monitor. So if you have a big company with many employees it may be too hard to track all indexes, analyze them and generate precise reports and feedbacks without special software. That is why we would like to dive into the topic of software optimization that helps to do better performance review. So, without further ado, let’s discuss all advantages of such software, the most popular types of it, and how you can integrate it into your working environment. 

Need free professional consultation regarding performance review software for your particular business?

Obvious benefits of performance review software 

All businesses nowadays experience tough competition and struggle to get a leading position on the market. Therefore it is important to continuously monitor the progress you are making and create a strong connection between the individual professional goals of your employees and the global objectives of the whole company. Software optimization not only allows you to get a clear understanding of your employee’s performance but it also lets you focus more on processes that require improvements and add value to your business. But these are not the only advantages you can get if you develop your own custom performance review solution. Here are some additional pros that it has:

#1 Achieve better connection and visibility. Many companies that still do not have performance review software tend to keep all their work-related records in Google sheets or on paper. This all makes it harder to get real performance related figures and understand where your business stands right now. On top of that, some crucial data may get lost because you’ve either forgotten to add it or haven’t seen it while generating a report manually. 

To fix this situation we would recommend considering the development of a cloud-based performance review solution. Why should it be cloud-based? Because this technology will allow your managers to access and alter data from any device and any time. The data will be securely stored in one place which creates a better connection between the departments and makes your progress more visible. 

#2 Get real-time feedback. This is a perfect option allowing you to motivate your employees to work better, provide them with some crucial and illustrative indexes that should be achieved further, and ensure instant communication. Real-time feedback can boost company productivity and implement the practice of constructive criticism and appraisal. 

Moreover, if your company has some partners and you need to establish productive relations between your team and the team of your partner, it is easier to do this using performance review software. It helps to take a look at the overall progress and to combine the efforts to eliminate some work-related challenges faster and more effectively. 

#3 Create personal growth plans. Every employee is a valuable member of your team moving your company forward. Therefore, it is important to keep your employees engaged and dedicated. The better way to do this is by incorporating personal growth plans. To promote the most skilled employees you need to identify them and train. 

By using a performance management solution it is possible to identify what a person has achieved better results and should be invested in and provided with the personal development plan. The software can also help you with hiring new team members and growing them into successful professionals within your company. 

#4 Generate reports automatically. Performance review software can help to unload your managers and all employees. They will no longer need to write out extensive reports and feedbacks since that can be done automatically. The results will be more precise and they will be securely stored and easily accessible. 

The data can be collected from all your crucial corporate systems like ERP or CRM and processed. Therefore you will be always aware of the real situation related to your business. It will be easier to identify what departments work should be improved and which one should be unloaded. Also, the reports and feedbacks can be generated more frequently which allows to adapt to all current changes on the market and adds flexibility to your business approach. 

So if you develop your own performance appraisal software you will:

  • Let your managers be reliable mentors for new employees.
  • Save a lot of time you’ve spent on paperwork.
  • Get a more holistic picture of your business environment. 
  • Receive valuable and accurate data related to your employees and business efficiency.
  • Define your own performance criteria that will help you get to a new level. 
  • Develop a more personal approach to your employees and let them grow. 
  • Perform better planning and develop a more effective business strategy. 

Need a performance review software for your business but not sure what features to add to get the max benefit?

How to implement a performance appraisal system in your company? 

First of all, let’s talk about performance appraisal software development. It can be not only a separate solution but rather a part of your internal business system. It is possible to connect this software with your CRM, ERP, and any other solution you are using within your company for employee management. We would also recommend considering a cloud-based approach as it is more fast, secure, and convenient for every user. You can add several authentication levels to provide access to the crucial data to specially entitled managers. 

Here are some features that should be a peasant in a performance review solution:

Holistic feedback. It will let you collect opinions of employees, managers, clients, and even your partners to obtain a more full picture of your company and each separate employee performance. 

Comprehensive reporting. Based on the feedback you’ll get the system can generate reports. It will analyze all data, take into account all peculiarities, and create reports with precise performance figures. After the report is created you should be able to access and review it as many times as you need. So there should also be an archive of reports. 

Option to create questionnaires and rate employees. Employees should be able to easily contribute. They can add some crucial information and questions, rate each other’s work and performance. There should be an advanced search with various categories if you own a big company and have a lot of employees. 

Individual development plan. This feature will be created for head managers. They can easily access employees’ feedback and profiles, see the progress of every employee, and set the individual development plan accordingly. 

Goal tracking and setting. The metrics related to short-term goals organized in a convenient chart will help you track weekly, monthly, and yearly progress of employees and managers. 

Option for leaving appraisals. The employees can assess their work performance, soft skills, communication level, and quality. This will help you discover what soft skills each employee should focus on more and what influences his or her performance. 

Already want to develop your own solution for tracking employees performance?

 

What about ready-made solutions?

Thinking about performance review software you may ask yourself a question: “Why would I invest in its development if there are ready-made solutions on the market? Like BambooHR, Deputy, Engagedly, etc.?” That is a reasonable question. However, all existing solutions may miss some aspects related to your particular business. 

One more serious disadvantage of all ready-made solutions is that you are not in control of their security. The providers assure you that all your files are safe, however if anything happen and either a server or some files get hacked, the sensitive information related to your employees can be disclosed. And you will be liable for the privacy violation as a company owner. Therefore custom solution is better if you ae going to implement performance review pratice in your business.

Now as to the motivation factor, all ready-made solutions offer a certain kind of employees rating according to the performance scores. These charts with numbers make employee focus more on their rating number rather than on an informative feedback. So the performance review collected within a system you are using will not be objective and will not reflect real situation. If you need your employees to focus more on feedback and working processes, then it is better to develop your own performance review solution taking this into account and making ratings less influential feature. It would also be preferable to implement 360 review feature to get feedback generted taking into account employees self-reviews and peer reviews.

Moreover, you will have to make monthly payments to use those solutions and end up spending more than you would have invested in your own one. It is also possible that those solutions will not be able to connect to your internal software and therefore the picture that you’ll get will not be full, it will miss some crucial indexes and details. However, if you really like any of the features of the existing solutions, you can add them to your own software with some alterations meeting your business needs. Just consult a professional Business Analyst to make clear requirements and understand what will work for you. 

Thank to this solution you can get a whole picture of your company productivity, discover what processes can be automated to unload your employees, motivate them to work better by offering promotions based on real visible results, and make hiring and training new employees much easier. Many huge companies already use performance review software and among them you will see Adobe, Microsoft, Deloitte, and many more.
Not really, because this software will be just an additional tool connected to your existing ones. So basically you will only need to think about your performance management srtategy, and prepare your employees for leaving reviews, feedbacks and evaluating each others performance based on some specific criteria you'll choose. Everything else will be connected and the reports and feedbacks will be generated automatically by a solution.
The main objective is to measure and improve the productivity of every separate employee and uncover his or her growing potential and value to the company. So the software helps to obrain and analyze the data related to the employee and generate a holistic feedback showing so-called worth of that employee.

In conclusion

Every modern company needs its own performance review software because this is the best way not only to track business efficiency but also to make more evidence-led and thoughtful decisions. With such a system you can focus more on growing real professionals within your company and making it more competitive, professional, and profitable. 

Performance review software reduces paperwork, provides a clear picture of your business environment, and discloses on what working moments you should focus more. It is crucial to keep your employees engaged and motivated because they achieve better results which are key for business success. 

Looking for a reliable team able to develop prformance review software from scratch and integrate it with your existing solutions?

Anna - Technology Author and Strategist I am mainly focused on enterprise mobility (Apple, Android), and digital transformation, highly curious about all emerging tech trends, always pay close attention to crucial details and try to find answers to a lot of questions before writing about something.

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