Performance reviews have been a staple of businesses everywhere for decades. Unfortunately, despite their consistent presence in workplaces, the review process itself has grown stale.
For many businesses, performance reviews occur once a year. The dread is placed upon employees and managers alike, often yielding inaccurate data and a failure to enact any real, positive change.
But that does not mean we should just throw performance reviews out the window. There is a better way.
Companies still use those traditional (i.e. outdated) performance reviews because it is what they have always done and are comfortable with. It could also be they are unaware of the new, technology-focused options available.
Ultimately, implementing performance management software has innumerable benefits to your company and your employees, including:
- Developing employee talent
- Identifying training needs
- Aligning goals
- Improving communication, motivation and morale
- Increasing engagement and retention
Develop employee talent
Performance management software enables businesses to continuously develop talent in a way that is not possible with only annual reviews. By consistently monitoring employees’ abilities, companies can cultivate an agile working environment.
Identify training needs
Whether employees need to improve their skill set or increase their knowledge with new industry trends, performance management software can help identify any shortcomings or future training requirements.
Align individual, department, and company goals
Development goals must be a collaborative effort between employees and their manager. Personal goals should align with overarching team and company goals. This ensures everyone is working cohesively. Regular check-ins are crucial to discuss progress, provide support, and ensure success.
Performance management not only demands better communication between employees and managers, it also encourages increased peer-to-peer communication throughout the company. Timely and constructive communication amongst all employees enables greater cooperation and productivity.
Improve motivation and morale
People that are confident and fulfilled in their jobs make happier employees. A key element of your performance reviews should be positive feedback, including celebrating success and recognizing employee achievements.
Improve employee engagement and retention
Increasing employee engagement is key to:
- Boosting productivity
- Developing satisfied employees
- Maximizing ROI
Engaged employees are also more invested in the business. Typically, this results in:
- Being actively involved in the workplace
- Longer tenure at the company
- Better performance
Make sustainable change through performance management software
When trying to impart positive change through employee reviews, remember that performance management is an ongoing process. Employees need to develop, data needs to accumulate, and results may take time to show. Ultimately, a small change is better than an employee quitting after a few weeks.