How to choose a performance review software that adds value

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 collected 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; annual performance reviews are useful. If you want to find out more about the reasoning behind it, read our performance reviews guide.

For a truly successful review you will need to tailor the format to your own organizational needs. 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 you decide to conduct your annual performance review, one thing is clear amongst HR professionals; understanding your employees' performance is crucial to developing your business.

Employees want to know where they stand. It may be hard to give constant feedback within busy companies. Therefore, the traditional performance 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. This is where annual performance review software comes in.

Fundamentally, performance reviews are a must as they open up communicationn within a company, especially between employees and managers. not only do performance evaluations highlight potential areas of improvement, it can improve employee engagement. Good communication is key to personal and professional development. And providing positive, negative, and constructive feedback to your employees is key. The first thing to do to introduce or update your current performance review process is to decide on the best annual performance review software for your business.

What to consider when choosing performance review software:

Easy to set up

Most annual 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. Benchmark 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, real time feedback, 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…

Research 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. If you've 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's highly advisable to request a free trial of the software, and have some of your team members trial it so you can gather 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.

Budget 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? This needs to be balanced against the departmental budget and how much you're willing to invest in performance management software.

Nonetheless, the HR software market is forever expanding and there really is annual performance review software out there for everyone. You can also consider a search for a full continuous performance management package, and learn how to select performance management software for employees.