Annual performance review software can improve the performance of your staff.  Here are some tips on what aspects should you consider to make the right choice.

How to Choose an Annual Performance Review Software

Annual performance review software can substantially improve the performance of your staff. Although, it can be overwhelming to choose the right software in a saturated market. Find out what you should consider when making the choice.

The high number of various HR software available makes it difficult for organizations and HR professionals to choose the product most suitable for their business. Having a comprehensive understanding of what you and your workforce need from the tool is therefore a key. In this article we colleted useful tips and thoughts to bear in mind when choosing your annual performance review software.

The importance of an annual performance review:

The worth of conducting annual performance reviews has been long debated, with the general outcome being; they are useful. If you want to find out more about the reasoning behind it, read our performance reviews guide. However, you will need to tailor the format to your own organizational needs. Therefore, some companies have turned their back on the traditional ‘one and done’ methodology and introduced ongoing feedback, others put greater focus on weekly one to ones. However, if you decide to conduct your annual performance review, one thing is clear; understanding your employees' performance is crucial to developing your business.

On the other hand, employees want to know where they stand. It may be hard to give constant feedback within busy companies. Therefore, the traditional formal review can be exactly what an employee needs to stay on track and ask any questions they may feel they are unable to bring up during a casual chat. Moreover, you need something to base any compensations and promotions on.

Fundamentally, whichever way you choose to conduct your performance reviews, they are a must, as they open up communication within a company, and communication is key to development. With that being said, one of the first things to do to introduce or update your current performance review process is to decide upon the best suited software.

What to Consider When Chosing Performance Review Software:

points to consider when choosing annual performance management software

Set up

Most performance review software available at the moment are cloud-based applications, which omits the need for a manual installation. All you need is a device and internet connection for the user to access the software. Otherwise installing specific software can be lengthy depending on the size of the application.

Understand what you are looking for.

You need to lay out some expectations as to what you would like included in your performance review software. Review your current process, and list what you would like to change, add, and subtract from the process. For instance, you may require a certain level of customizability, or you may want additional modules such as the ability to set and monitor goals. Therefore, researching the potential of each software is crucial. On that note…

Researching the UI.

Annual performance reviews may be a dreaded process for some, so implementing the most user friendly and simple process for your employees is highly recommended. As such, if you have updated your process to something more tedious and cumbersome, you have made a mistake.

This is where research is key, as well as partaking in demos. It is highly advisable to request a free trial of the software, and have some of your employees trial it so you can gather some feedback on whether or not the user interface encourages users to conduct the review thoroughly instead of approaching it as a chore. By in large, simplicity is key.

Budgeting and cost.

There are a couple of factors you may want to consider when deciding upon cost and effectiveness; does the software match your organizational needs; do the vendors offer excellent customer support and implementation assistance; will they meet you halfway and ease the transition from paper to software or software to software.

Nonetheless, the HR software market is forever expanding and there really is software out there for everyone, so if you are to do your due diligence there will be something suitable for your organization.

Henry Watson

Henry Watson

Employee Experience Champion

4 minute readPublished on October 31, 2019
peoplegoal
peoplegoal

HR, Your Way.

"Customizable to your requirements"

"Outstanding support"

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