If you’ve found yourself here; looking at the components of a performance management system, either the one you’re currently using doesn’t suit you; or you don’t have direct experience with performance management software solutions. Either way, we’ve taken the work out of researching the various features and components your performance management software should have, and made your selection of an appropriate solution a piece of cake.
Selecting the solution that is right for you and your team is no small task. You need something that is quick and easy to pick up, something that integrates seamlessly into your workflow, but most importantly you need something that is effective, efficient and worth the investment; both in terms of time and money. A lot of companies search out a solution in order to have a more automated annual review process. However, if you are only using your solution to save time while doing annual reviews, you are really missing out. There are so many more wonderful features on board these Performance management solutions that not only can have a myriad of benefits for you and your workers; from boosting employee engagement and satisfaction, to fostering a culture of continuous feedback to the facilitation of goal setting and tracking. Let’s dive in: here are the features and components your performance management software must have.
A manager review is a process whereby an employee can assess the strengths and potential coaching needs of their managers. This method provides managers with the opportunity to receive constructive feedback from their employees about core skills and competencies needed to lead a team effectively. Managers evaluations can be used to identify areas that coincide with the organizational goals and objectives
360-degree feedback is probably the most valuable feature of most performance management softwares; and more than likely a key reason for your readership. 360-degree feedback is perhaps the most valuable addition to the performance management system. It is a method and tool by which employees are given the opportunity to receive (and give) constructive performance feedback from his or her peers, managers and direct reports. This gives employees a comprehensive overview their key strengths, but also their coaching needs. 360-degree feedback typically involves skills and competencies describing the employee's performance and often employees are asked to complete a self-assessment for a further comparison.
Conducting engagement surveys in your company is an effective way to gain an insight into what matters most to your employees. As the name suggests, the primary reason for carrying out engagement surveys is to uncover if your employees are engaged or disengaged. There is no ‘right’ way to measure employee engagement, but some commonly assessed factors are; advancement, recognition, pay & benefits, job role, training & development opportunities, leadership, work environment, etc. Aside from measuring engagement though, it also has the added benefit of giving employees to voice their concerns, but also comment on what is being done well within the company. These results in-turn highlight areas for improvement and development.
Social Recognition or just ‘recognition’ as it has become known by is the process of providing employees with the tools to create meaningful relationships with each other. Such tools include feedback apps that empower employees and encourage them to celebrate the successes and behaviours they experience each day with their colleagues. Collaboration tools have become massively popular in the past few years, and it’s hardly a surprise. Any tool that simplifies dialogue and facilitates the sharing of feedback between employees should only be encouraged. One notable example of social recognition as a component of a performance management system is the ‘Praise & Tip’ function of the feedback software tool Impraise.
Goal-setting at work is hugely important. Research indicates that setting specific and challenging goals leads to higher performance than no goals. Therefore, goal setting is a crucial component of performance management software. The bottom line is, when people set goals, they achieve more. But goal-setting isn’t just for individuals; team goals inspire team members to do their very best, and to help their colleagues in the pursuit of their goals as individuals and as a team. Your performance management system should enable the setting of goals, in a simplistic, easy and straightforward manner that encourage your team to set goals and achieve important milestones at work.
Goal alignment is the process by which you keep your employees working towards your collective goals, or company-wide objectives. It is all very well to set goals; but goal setting alone is not enough to push a lot of employees to achieve their goals. This is where a goal alignment feature of a performance management becomes most important. Your performance management system should facilitate the setting, tracking and completion of individual as well as team goals.
While employee engagement, benefits, and the happiness of employees can all help with employee retention rates; there are very few people who get, and keep the same job for their entire working lives. Therefore, employee mobility is an issue that companies are faced with and must confront. Succession planning ensures that, as employees inevitably move on to their next challenge, the talents and skills that made them a good fit for your company are transferred onto other employees, as replacements. Coaching and skill development should therefore be encouraged through the performance management system. Self-assessments as available on Impraise, in addition to 360-degree feedback and coaching are useful for outlining the future growth needs of employees.
So now you have it...the 7 components your performance management system must have in order to be comprehensive enough, and give you the performance management support you need. To read more on the benefits of 360 software, click here. Or to view a demo from Impraise, click here.
Photo by Alejandro Alvarez