Tracking how the employees are performing is one of the primary responsibilities of HRMs and team leaders. Further, to ensure they get the most out of each employee, it is important to understand their potential and motivation.
For streamlining the business process, the best option is to deploy an HR Performance Management Software.
Performance Management: An Overview
When hired, each employee commits to contributing to the growth of the organisation. Monitoring this commitment can be done via a performance review.
When a manager knows about the issues being faced by an employee, not only can they offer a guide to ease their tasks, but they can also motivate and provide feedback. This sets the stage for increasing efficiency and work delivery. Further, this helps associate results delivered with benefits and incentives offered.
Why Do You Need an HR Performance Management Software?
Not only can you make informed decisions, having an HR performance management software in place ensures that you are free from liability during:
- Termination of poor performers
- Industry audits
You can reduce your workload, save time, and make decisions that are data-driven and free from bias.
While 77% of HRMs claim that just an annual review is inadequate, this just means the way reviews are viewed needs to be changed. However, 79% executives have marked continuous reviews as a priority.
Benefits of a Performance Management Software
Modern business practices stand to gain a lot from adopting performance management software like 9 Box Grid and Success Circles™. This can achieve great results.
With proper reviews, employee turnovers can be effectively reduced by 14.9%. In contrast, a Forbes study revealed that only 14% feel motivated after their reviews. This makes it doubly important to have the right HR performance management system.
What is the ROI?
Not only do people feel recognised for their work when they receive a good review, but they also feel motivated to do better. This promotes a positive work ethic and a healthy workspace.
As a result, job roles get assigned to those best suited for them and better results are delivered. Further, workers feel heard and recognised.
According to Zivvia, 65% employees request more feedback for their work. 70% increase in engagement can be observed when managers provide a fair appraisal.
Must-Haves of an HR Performance Management System
To be effective, having the below features is essential:
- Real-time monitoring and reporting
- Continuous feedback should be available
- Provide tracking for employees
- Offer scheduling options for review meetings
- Customization should be available to align with business needs
- Comply with industry standards
- Encourage communication between different levels of the company
- Onboarding process for new hires
- Ease the daily functions
Top Options for HR Performance Management Software
When it comes to performance management, the most popular option is the HR 9 box grid method. However, this method is losing its efficiency with more and more GenZ workers entering the job market.
This has led to an influx of options. The biggest tools for performance management are:
- 9 box grid that measures potential vs performance by mapping it as a matrix
- Success Circles™ that uses peer groups and detailed review parameters, accounting for:
- Culture
- Teamwork
- Communication
- Development
- Performance
- Alternative grids with a 16 box matrix
- Performance-Values grid to sort people into
- Top contenders
- Violators
- Solid employees
- Dead weight
- 360 degree feedback that involves
- Peer reviews
- Manager feedback
- Self-evaluation checks
- Using personalized individual plans
- Combining parameters like skill, performance, and engagement
- Using checklists and scorecards
- SWOT analysis and similar tests
Not only should the adopted methods be bias free, but the goals and parameters set should be measurable. To keep up with the Gen Z workforce, the HR Performance Management Software used should be fair, detail-oriented, and practical.
Among these, the most widely used is the HR 9 box grid method. However, this is due to the fact that it has been available longer. Alternatives like Success Circles™, Performance-Values grid, and 360-degree feedback might be a more efficient option for the newer workforce and their dynamic.
Impact of HR Performance Management Software on Operations
With the right HR Performance Management Software, whether HR 9 box grid or Success Circles™, the following positives can be seen:
Parameters of an Effective Software
Ensure the following checks are met when you decide on an HR Performance Management Software:
- Scalable options should be chosen to accommodate future needs
- Cost-borne and value-added
- Offering bug fixes and regular software updates
- Methods employed should have:
- Ease of use
- User friendly
- Transparent review system
- Effective planning and management
- Differentiate between potential and results
- Identify those suited for leadership positions
- The software should facilitate:
- Incentives and bonus
- Reskilling
- Work assignment
- Promotions
This should help establish duties and job roles, evaluate tasks and results, and provide an accurate assignment.
To Conclude
Using AI and data driven software, obtaining analytics and results has become easier. Not only does this make the system fair and transparent, it ensures real-time feedback and thus facilitates communication.
Using an HR Performance Management Software, not only can managers align individual goals to organizational targets, but they effectively reduce the pressure that people feel often when they have an upcoming appraisal.
