If your performance management system isn’t having a positive impact, you’re not alone. More than half of respondents to a recent McKinsey survey said their performance management efforts have not had a positive effect on performance.
But it’s not all bad news.
The same survey showed that when executed well, performance management has a positive impact on employee performance and the organization’s overall performance.
However, 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 platform that helps you:
In this article, we’ll cover each of these components and how tech can amplify your impact.
Goals should be clear, aligned and shared. Clear goals guide employees to focus on the right priorities and keep their work aligned with organizational strategy. This ensures accountability across the company, motivation to propel the business forward, and strategic alignment at every level.
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 performance management software should promote transparency, alignment, and collaboration across the organization.
Look for features such as:
Employee recognition should be motivating, public, and reinforce your organization's values. One study found that 69% of employees would work harder if they felt their efforts were better recognized.
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 bridge the gap to celebrate, motivate, and engage teams across your organization.
Look for recognition software that:
Great companies are built on trust, and trusting cultures are built on feedback. Our research shows that a strong feedback culture correlates with a highly engaged workplace.
Continuous feedback should be individualized, constructive, and unbiased. Regular feedback builds strong relationships by encouraging transparent dialogue and helps drive better performance through continual improvement.
Too many organizations aren’t providing enough feedback. In fact, 71% of employees prefer immediate feedback, even if it’s negative. The right software can make sure your teams are getting the feedback they need to succeed.
Choose a feedback tool that helps you create a feedback culture across the organization.
Look for software that lets you:
One-on-ones should be frequent, collaborative, and documented. From check-in meetings to formal performance reviews, one-on-ones 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.
With so many moving parts, it can feel daunting to try to capture the right information, document it, and create an action plan for every single employee, every time.
Your performance management software should empower managers to have regular and effective performance conversations.
Performance reviews should be future-focused, transparent, and two-way. Look for one-on-one software that can help you prepare for and follow-up on meetings with features such as:
Plus, having access to past meetings, employee goals, feedback, and data from your HRIS or other performance features allows you to get a full picture of employee performance and help managers better coach their team.
Talent reviews should be frequent, unbiased, and rooted in data. Managers and leaders across the organization need to know who is doing the best work, who is ready for promotion, and who is at risk of leaving. Talent reviews allow leaders to track and evaluate performance, fill talent gaps, develop and retain top talent, and intervene before employees burn out or quit.
Talent decisions should be based on credible data that is easy to access, understand, and act upon. Performance management software can help you track talent metrics on an ongoing basis so you can make informed and strategic talent decisions.
Look for features that simplify the talent review process, such as:
Employees want to work at a company that invests in their long-term development and provides opportunities to grow. And the benefits of a strong employee development program are mutual. Employee learning and development should be prioritized, supported, and organization-wide. Successful employee learning and development leads to increased engagement, better employee performance, and happier, more motivated workers.
There are multiple ways to invest in employee development. But one of the most powerful tools is coaching.
In order for coaching to be effective, it needs to be integrated into your organizational culture. That’s where technology can make a big difference.
Use a performance management system to build coaching into the fabric of your company culture.
Look for features that help you:
An all-in-one performance management system can take your performance management to the next level by integrating and amplifying your efforts across all areas of performance.
As you track and manage recognition, goals, feedback, one-on-ones, coaching and development, use technology to build off each segment and deliver seamless experiences.
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.