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8 Must-Haves for Your Next-Generation Performance Management System

8 Must-Haves for Your Next-Generation Performance Management System Blog Post ImageIf you’ve been following HR trends lately, you’ve probably heard some version of this statement: “performance management is dead.”


You might agree—especially if your performance management system isn’t having a positive impact. And the truth is, you’d be in good company: more than half of respondents to a recent McKinsey survey said performance management has not had a positive effect on performance.


But performance management is not dead—it’s alive and well and ever-evolving.


Download the ebook: Moving Beyond "Performance Management is Broken"


The same survey showed that when executed well, performance management has a positive impact on employee performance and the organization’s overall performance.


Implementing a next-generation performance management system calls for a new approach. It requires letting go of the traditional, top-down, annual approach in favor of one that’s modern, employee-centric, and continuous.


But getting to a system like this isn’t easy, and that old paper and pen process won’t get you where you need to be. You need tech that supports, enables, and empowers your efforts. And not all performance management software is created equal. Look for a performance management platform that gives you ALL of the following capabilities!


1. The ability to set, track, and collaborate on goals.


Goals help people and organizations achieve more, faster, with less. Make sure you have the tools you need to help your teams set and track goals. Organizational goals should be driving team goals, and team goals should be driving individual goals. Your goals software should promote transparency, alignment, and collaboration across the organization.


2. Peer-to-peer, real-time recognition.


We all like to feel appreciated for our work. Openly acknowledging and praising employee behavior or achievements offers many benefits, such as increased productivity, increased engagement, decreased turnover, and improved company culture. Recognition software can help you celebrate, motivate, and engage teams across your organization.


3. Collect and share immediate and continuous feedback.


Great companies are built on trust, and trusting cultures are built on feedback. Regular feedback builds strong relationships by encouraging continuous and transparent dialogue. Choose a feedback tool that allows you to collect ongoing 360, peer-to-peer, and upward feedback.


4. Drive meaningful one-on-one meetings.


This might be the MOST important part of your performance management platform. When managers effectively coach and develop their employees, 74% say their performance management systems are effective. Your performance management software should have a tool that empowers managers to have regular and effective performance conversations.


5. Track vital talent metrics.


Talent decisions should be based on credible data that is easy to access, understand, and act upon. It should be easy for managers and leaders across the organization to know who is doing the best work, who is ready for promotion, and who is at risk of leaving. Using tech to track talent metrics on an ongoing basis will help you make informed and strategic talent decisions.


6. Collect and share ideas and alerts.


Very few managers are natural coaches. In fact, one study estimates only 1 in 10 managers has high talent in people management. This means about 90% of managers need at least some level of coaching around managing and motivating their teams. Look for in-tool coaching and resources that put your managers on a path to success.


7. People analytics that measure what matters.


Data for data’s sake is useless. You need robust analytics and insights that answer questions, shape decisions, and illustrate team performance. One of the biggest benefits of performance management software is the data it provides! Imagine a world where you can make data-based decisions rather than decisions made on hunches or politics.


8. Easy-access engagement and pulse surveys.


Engagement and performance go hand-in-hand—and so should your engagement and performance software. When your employee engagement surveys are integrated into your performance management platform, you can collect and analyze feedback at the organizational and team level, and then use those insights to drill down into the real issues and feedback.


Performance management isn’t dead—it’s just changing! Download our ebook, Moving Beyond "Performance Management is Broken", to learn more.


Moving Beyond Performance Management is Broken


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