Continuous performance management software enables organizations to manage their workforce, boost productivity and create an engaging company culture.
The traditional annual appraisal has been disrupted by continuous performance management; a systematic approach that has been proven to enhance employee engagement, productivity, and motivation. Employees want regular, real-time feedback on their performance, and this requires a significant cultural change at management level. To win today's war for talent, organizations need to be in the vanguard and shift focus from stagnant, one-off annual performance reviews to future-proofed and ongoing performance management practices. The best way to do this is with a continuous performance management software.
Continuous performance management is defined as the process of providing ongoing, regular feedback to employees throughout the year. It is a constant and holistic process that aims to replace the traditional performance management model, which is over-reliant on the annual performance review. Continuous performance management incorporates regular goal-setting, frequent check-ins, 1-to-1s, peer feedback and reviews in order to create an environment where teams can perform to their maximum potential.
82% of HR leaders say that performance management is a largely unsatisfactory experience
Gartner research has shown that 82% of human resources leaders find performance management is not effective in achieving its primary objective, and only 38% say it keeps pace with the business needs. By 2022, more than 30% of organizations will abandon a one-size-fits all approach to performance management, instead opting for a tailored system that suits the specific needs of the business.
In a weekly feedback system, employees are 2.7X more likely to be engaged and 3.2X more likely to be motivated
Whilst many organization typically assess performance using annual performance appraisals, Gallup research has revealed that giving feedback continuously dramatically improves employee engagement and morale. In fact, according to Gartner organizations that embrace continuous performance management processes achieve a 24% boost in performance, as well as 14% more engagement among employees.
Continuous performance management provides employees with the tools they need to improve their performance. Goal-management, regular development conversations with direct managers and frequent feedback drives high levels of employee engagement. Employees who receive continuous feedback will feel valued within the organization, and inspired by the opportunity to learn and grow. Organizations with highly engaged teams have a healthier, happier, more productive workplaces which is the key for increasing employee retention rates.
Withholding feedback until the annual performance review will curb employee growth and development as they will not have the opportunity to improve their performance throughout the year. Delivering feedback immediately after a project, meeting or presentation allows managers to do a better job of coaching their employees, as well as allowing employees to effectively process and apply the advice they are given.
Employees will also have a greater incentive to maximize their productivity, and be much more receptive to the feedback they are given as it is relevant to what they are currently working on. With feedback conversations occurring constantly, negative feedback will not sound as judgmental as was when given as part of an annual review, and will be taken onboard and used to improve performance.
Conducting regular conversations between managers and employee about performance and development will boost employees' commitment to the organization, as they will be encouraged to actively solve problems with their current performance whilst developing skills for the future. In the meantime, throughout the year, managers should be coaching their employees to work autonomously which will allow them to take pride in both their work and in the organization as a whole and in turn, understand their contribution to the overall company success.
A cutting-edge performance management software can help build a workplace that drives learning, growth and development, as well as improve employee engagement, motivation and commitment. Performance data should not exist in silos but should be integrated into one single system.
Employee performance management software needs to combine the five elements of continuous performance management - goals, check-ins, 1-on-1s, reviews and peer feedback - in one place. This will ensure that employees remain focused and aligned with the key business objectives, and periodic conversations between employees and their managers will have a direct impact employee development and progress towards their goals.
A robust performance management system should also have the capacity to incorporate goals and peer feedback into check-ins and reviews. This will help set the bigger picture and provide well-rounded, data-proofed performance reviews that will remove bias and further improve employee performance.
A performance management software should have the capability to bring together both quantitative and qualitative touchpoints to get the most out of your teams. Measurable OKRs and performance ratings can be paired with qualitative feedback from reviews, check-ins and 1-on-1s to provide a complete picture of employee performance. Quantitative data can be used to create complex reports to identify areas of strengths and weakness, whilst qualitative information can be used to build comprehensive action plans to drive improvement in problem areas.
At PeopleGoal, we are aware that there is no one-size-fits all solution when it comes to performance management. That is why we have developed a complete CPM solution that is easy to use and highly configurable to the individual and unique needs of your organizaton. Our cloud-based continuous performance management and engagement software allows you to do things your way.
PeopleGoal allows you to automate your workflows, reducing the time HR has to spend creating items on the platform. Kick-off processes like performance reviews and check-ins based on default multiple and traditional manager-employee relationships with the click of a button. You can also auto-launch performance review cycles based on your preferred cadence.
Looking for a robust performance management software that can be completely customized to fit your organization's unique culture and way of working? PeopleGoal has you covered, book a demo with one of our team today.