Performance review season is around the corner, and this year, your review cycle might look a little different from past years. About 30% of companies made changes to their review plans during the pandemic. 5% of companies halted reviews altogether, and about 47% of HR professionals said they had made changes or were considering changing performance goals.
While some of those changes may be permanent, there are likely some adjustments to be made as workplaces return to more ‘normal’ operations. Changes are also important because current processes are resoundingly unpopular. Only 14% of employees are motivated by reviews, and 95% of managers are unsatisfied with their review process. But, 96% of employees want more frequent feedback, which means they do want to talk about their performance.
Luckily, there’s a powerful tool available that can support your organization through every change: performance review software. In today’s post, we’ll go over some of the top benefits of supplementing your performance review strategy with software.#PerformanceReview software gives your #PerformanceManagement strategy some big advantages over traditional processes. Check out the 6 top benefits of using review software from @ClearCompany:
What Is Employee Performance Review Software?
What exactly is employee performance review software? Great question: this software provides powerful tools to give your review plan a boost. Some of the most beneficial features of performance software include:
- Various types of review formats, including New Hire Reviews, Quarterly, Bi-Annual, or Annual Reviews, and Peer and 360 Reviews
- Goal planning capabilities to ensure alignment with company goals
- Reporting tools to evaluate performance trends
- Employee recognition and celebration tools to share accomplishments and milestones
- Engagement surveys to gauge employee sentiment and improve culture
Performance review software automates and simplifies many processes across roles. More software features include automatic reminders, data analysis and reporting, and employee feedback opportunities. All of these combine to power a performance management plan that is transparent, consistent, and overall much more effective than traditional methods.
Performance review software tools benefit everyone involved in the process:
- HR teams who create and implement performance reviews.
- Managers who conduct reviews and analyze results.
- Employees who participate in reviews and receive feedback.
- The company whose employees are more productive, engaged, and motivated to do their best.
Now, let’s take a closer look at just a few of the advantages of using performance review software.
1. Stay On Schedule with Review Cycles
Employee performance review software assists with a significant part of the review cycle: completing them on time. With Time-based Reviews, you choose the cycle that works best for your employees, and your software takes care of (almost all of) the rest. Automatic reminders take some of the pressure off of HR — no more tracking down managers or sending multiple emails to get reviews submitted on time.
New Hire Reviews can be scheduled for 30, 60, or 90 days after employee start dates, and Peer Reviews can go out during each performance review cycle. These additional review types ensure you give and receive timely feedback from many perspectives. Performance review not only offers multiple review types — it does so without adding hours of tasks to HR teams’ to-do lists. Offering several review opportunities is also a great way to build a detailed, holistic view of performance from the start of every individual’s employment.
2. Share Goal Updates and Progress
Goal-setting during performance reviews is important, but it’s equally as important to stay on top of those goals. 59% of companies are planning to focus on their goal-setting process into next year, meaning it’s a priority for many. With performance management software, employees can set goals, add a deadline, and get reminders when it’s time to provide an update. Managers have the ability to monitor progress and ensure employees are on track for success.
Managers can also provide feedback while goals are in progress. That allows employees to adjust their approach if they’re falling behind or earn recognition for a job well done. This increased openness around goals makes it clear to each employee how their goals align with departmental and company objectives. When employees know what is expected of them at work, not only does their performance improve, productivity does, too.
3. Maintain Employee Performance Records
Performance reviews are useful on their own, but even more so when you can reference past reviews. The software maintains a complete record of employee performance reviews, providing valuable insight about their development over time and any trends in their performance. This helps managers prepare for future reviews and learn more about how to motivate, engage with, and empower employee development.
Employee performance records are also useful when making a case for promotions, learning opportunities, and even terminations. They can help you prepare targeted, relevant employee review questions. Accessible records maintained in a software platform are also another way to increase transparency around performance reviews. HR can then use improved data access and records to make informed changes to performance management strategy.81% of HR leaders are changing their approach to #PerformanceManagement. Are you part of that 81%? See how #PerformanceReview software can make a difference at your organization:
4. Generate Performance Reports and Analyze Trends
One top advantage of using software is its ability to gather data, create reports, and provide insights that aren’t possible with a paper-based process. Analyze performance by individual, manager, or department. Filter performance reviews according to custom criteria for unmatched insight into what really drives performance at your organization.
According to Gartner, data analytics power better, more timely feedback for employees to help them better understand where they can improve. Data also powers better communication around performance, something that 53% of CIOs said was their biggest challenge in a remote work environment.
Gathering information with the help of performance review software makes it possible for your company to take steps toward a deeper understanding of current performance. In addition, the software helps you make decisions about performance strategies that are informed by real, accurate data. Then, you can confidently share insights that drive any changes to strategy.
5. Recognize Accomplishments and Milestones
Recognizing accomplishments and celebrating milestones go a long way toward improved engagement and retention levels. 70% of employees say their morale and motivation would increase with recognition, and evidence shows that it decreases turnover by as much as 31%. These numbers show that tying recognition into your performance management plan is a highly effective way to keep your employees connected to their work.
Software provides a simple and highly effective way to implement recognitions and celebrations and reference those accomplishments during performance reviews. Employee recognition tools allow for public appreciation of great performance and milestones like work anniversaries and invite everyone to add their compliments.
6. Creates Opportunities for Continuous Feedback
About 75% of companies worldwide are moving toward a continuous feedback model, where employees are given performance feedback at more frequent intervals. With performance review software, you have more chances to offer — and receive — feedback. Employees share updates on their goals, and managers can give feedback based on if employees are ahead, on schedule, or behind with their goals. Employees also have the opportunity to share their feedback through engagement and pulse surveys in some platforms.
81% of HR leaders say they are changing their approach to performance management. If you’re part of that 81%, there are so many benefits to bringing software into your performance review process. In addition to the many advantages, it’s essential to stay competitive: the performance management software market is estimated to grow at a 13% CAGR into 2025.
Increased transparency, clarity around goals, and the ability to share continuous feedback both ways all contribute to a powerful review plan. With performance review software tools, HR teams can build a program that improves employee performance and boosts engagement, resulting in employees that are motivated to achieve their goals. What’s more, performance review statistics show that engagement is a main driver of business success.
ClearCompany’s Performance Management system can bring all of these benefits — and more— to your organization. Harness the power of employee engagement and pulse surveys, tailored performance reviews, and robust reporting and analytics. Use your new knowledge to help your teams reach their full potential. Get started today — sign up for a demo with the ClearCompany experts.