3 minute readPublished on September 7, 2015
Nikolaos Lygkonis

Nikolaos Lygkonis

CEO at PeopleGoal

The Benefits of Automating Your Employee Performance Reviews

Automating employee performance reviews can save a lot of time for Managers and HR.

Many companies struggle to complete their performance reviews, communicate what is expected from their employees and ensure employees are accountable for their results and performance. The best way to increase participation and on time completion of performance reviews is to automate the process and the content of the review. Here are some clear benefits of moving from manual employee performance reviews to an automated performance management system:

Faster and simplified process

An automated employee performance management process can be configured to your needs with customizable set of questions and clear workflow tasks. Roles and responsibilities of the manager and employee are clear and everyone knows by when they have to complete their part. Using an automated employee performance management system you can review the process at any point in time and track progress at every step in the process. If reviews are missing, automated reminders will be send at any point in time.

Timely completion of reviews

With an automated employee performance management system you can set clear timelines and tasks. Then, everyone is aware what is expected from them and by when. When a process step is completed the software automatically notifies the next person once the performance review is completed with due dates and what they need to do. Therefore, no chasing will be required from the HR department. Custom reminders can be created in the system to enable timely notification and reduce time spend on chasing employees and managers, improving the productivity of the team.

Managers and employees have instant access to all materials required to complete their employee reviews: 1. Scoring guidelines 2. Ratings 3. Past performance 4. Feedback and development points 5. Language and spelling checks

Time savings

The above will drive significant time savings. PeopleGoal conducted a case study in 2014 to estimate time saved from moving to automated employee performance reviews. Here are the results: • Employees spend 50% less time in completing their self-evaluations • Managers spend 80% less time in completing employee reviews • HR spend 90% less time managing the performance review process

Descriptive Statistics and Reporting Analytics

Moving to an automated employee performance management system will give you access to a wide variety of data analytics. You will be able to analyze employee performance instantly and generate reports on: • Over/Under performance • Employee/Team skills and competencies • Development themes for employees and teams • Goal progress and alignment to company objectives • Performance review completion rates • Team/Employee strengths and weaknesses

Data can be further analyzed to calibrate ratings, create succession plans, compensation allocation and create development plans.

Cost Savings

Further to time savings moving to an automated employee performance management system will allow for significant cost savings as managers will have more time to focus on managing and developing people rather than writing performance reviews. Automated reviews also save HR time spend on managing the process and filling each review.

Increased employee productivity and performance

Managing the review process with a performance review system an employee can easily align personal goals with company objectives and track progress. Therefore, employees can easily understand how they contribute to the company success; which by itself serves to increase employee productivity and performance. Managers are able to tailor their coaching based on feedback and development points collected through the process as and can set clear expectations from their direct reports; which will help employees understand how their work is being evaluated within their company, a key contributor in reducing employee turnover. Finally, an automated employee performance system will enhance reliability of the review process and increase accountability and responsibility for both the managers and employees.

An automated employee performance review process will help you unlock the real benefits of the review process and unlock employee performance and productivity.