What should you look for when choosing performance management software? Here are eight key features that will make your new system invaluable to your small or medium-sized business.
Key Takeaways
- Performance management systems offer a variety of different functions, including goal setting, instant feedback, annual reviews, check-ins, analytics and reporting.
- These functions should include further special features if you want to be able to make the most of your software suite.
- First, you should be able to set up clear metrics according to what you are measuring (9-box grid, 360-degree feedback, qualitative and quantitative metrics).
- Second, you should have access to automated processes and intuitive displays so you can make the most of reports, reminders and quick document summarizations.
- Third, make sure your suite includes a 360-degree feedback module that allows you to toggle anonymous reviews if required.
- Fourth, you’ll need employee self-evaluation tools, and they should be configured for maximum privacy and insight.
- Fifth, check whether you can set and track different types of goals, according to whether you are using cascading goals, simple KPIs, S.M.A.R.T. goals or OKRs.
- Sixth, look for instant feedback capabilities, as real-time feedback is at the heart of continuous performance management in today’s workplaces.
- Seventh, verify that the manager log is a secure place where you can keep track of employee performance and interactions on a regular basis.
- Eighth, choose a provider who offers excellent customer service, including help with set-up and extensive documentation and support as you begin using the system.
- Primalogik provides award-winning performance management tools that meet all of the above criteria and are used successfully by SMEs worldwide.
Table of Contents
2. Automated, Intuitive Processes and Displays
4. Employee Self-Evaluation Tools
6. Instant feedback capabilities
9. Primalogik offers award-winning performance management software for SMEs
8 Key Features of a Top Performance Management System
The best performance management systems offer a combination of functions:
- Goal setting
- Instant feedback
- Annual reviews
- Check-ins
- Analytics
- Reporting
Goals provide direction. Feedback ties goals to the day-to-day. Check-ins provide space for short and long-term performance discussions. Analytics and reporting show data.
Within this basic framework, there are a few specific features you should look for, to make sure you can effectively implement continuous performance management to today’s standards.
Let’s take a look at what you should have access to when you purchase a performance management software solution.
1. Clear Metrics of Success
Your performance management system should provide easy-to-understand measures of success that allow you to quickly determine how much progress an employee has made. You should be able to customize how and what you measure.
Complex criteria make performance evaluation challenging. But clear benchmarks based on precise goals will help your team stay on track.
A good performance management system can help you choose clear metrics. Here’s a non-exhaustive list of common ways to measure employee performance:
- Management by objectives: This goal setting model breaks down an organization’s goals into specific employee goals. Ideally, these goals would be discussed between managers and employees, and could include development and performance goals.
- 9-box grid: A talent matrix helps assess employee potential and current performance. This tool is often used to help create employee development plans.
- 360-degree feedback: Using feedback from managers, peers, subordinates and sometimes clients is an established method for doing a complete and well-rounded evaluation. This so-called 360-degree feedback is highly valuable to SMEs.
Productivity Metrics
As a rule of thumb, there are 4 different types of productivity metrics, each of which should be measurable in your performance management system:
One: Quantitative metrics
This is what most people think of when they hear the word “metrics.” The reason for that is simple: measuring quantity is often easier than measuring quality.
There are plenty of ways to measure quantitative data. Examples of simple quantitative metrics include:
- Number of sales
- Amount of revenue
- Percentage of referrals.
Two: Qualitative metrics
Qualitative metrics reflect how well an employee performs. They’re subjective in nature, but they can be measured in a few ways:
- Performance objectives
- Feedback from customers/clients
- Peer feedback
To make objectives more tangible, you can describe them using values, weights, points or percentages.
Three: Efficiency metrics
Efficiency as a metric considers the quantity and quality of work performed. The reporting function of your software should allow you to easily visualize overall efficiency based on the criteria of your choice.
Four: Organizational performance metrics
Organizations should also be able to use the performance metrics of a larger group or workforce to determine how well the entire company performs.
2. Automated, Intuitive Processes and Displays
Anyone would prefer a system that’s designed to be user-friendly and intuitive. But what should you expect, exactly?
A great performance management system will:
- Give you automatic prompts and reminders so you’ll never forget a task you need to complete.
- Let you sign documents via an e-signature instead of going through the hassle of printing, signing, and scanning.
- Allow you to customize key features such as questionnaires and surveys, but also provide templates for easy implementation.
- Provide clear visuals in reports and analytics.
- Provide AI-supported functions like feedback summarization, etc.
3. 360-Degree Feedback Module
A quality system lets you gather performance information from a broad range of people who work with each employee. The gold standard for implementing this approach is via 360-degree feedback software, and a good system will allow you to choose to collect anonymous feedback when appropriate.
Collecting this type of feedback electronically rather than having to sit down and conduct in-person interviews with each participant is non-negotiable in today’s fast-paced work environments. So check your system, and make sure you have access to a reliable 360-degree feedback feature before signing up.
4. Employee Self-Evaluation Tools
Your performance management system should also allow employees to complete self-assessments. Assessing their own progress is key to employee development, and managers need a simple way to encourage this type of activity, and to organize the data for maximum privacy and insight.
Check your system for customizable questionnaires and surveys, and automated reminders, to make the employee self-evaluation process easy and respectful.
5. Goal-Setting Support
Everybody needs regular reminders when it comes to goals and objectives. A quality performance management system lets you set dynamic goals, so that you can modify them over time. This gives employees room for their ambitions and competencies to grow, or for adjustments as your company evolves.
Ideally, you should be able to set a set and clearly visualize a combination of short and long-term goals, in a range of formats, including:
- Cascading Goals: These are high-level goals that are broken down into smaller, more specific goals for each successive level of the organization.
- KPIs: Key performance indicators are measurable goals. They show how effectively a company is meeting business objectives.
- S.M.A.R.T. goals: Specific, measurable, achievable, relevant, and time-bound goals are another category. They use specific criteria to ensure goals are clear and can be reached in a given timeframe.
- OKRs: Objectives and key results are yet another way of setting goals. They’re used by groups and individuals alike to achieve often hard to reach goals.
6. Instant feedback capabilities
Real-time feedback is at the heart of continuous performance management. Through real-time feedback, managers can address a problem as soon as it comes up, or offer praise as soon as it is deserved. Up-to-the-minute feedback helps eliminate unnecessary meetings and is proven to improve employee engagement and productivity levels.
Since giving frequent feedback is part of an effective feedback culture, which is key to building a happier, healthier workplace, you need a system that makes it easy. Check for this feature in your performance management software suite, and get ready to use it every day.
7. A Manager Log
A great software program also gives managers a place to keep a regular log of how employees are performing, giving them a handy reference on employee progress. Check for a log where managers can track important events in their employees’ development, so they have easy reference to these milestones (and any other important communications) during annual reviews.
And remember, all of the information stored in the system should be secure. The sensitive data of your employees and company should be available based on user access levels, and protected with up-to-standard security features.
8. Excellent Customer Service
You’ve purchased your software, and you’re ready to start setting it up. Here’s where customer support really matters.
Select a provider that provides answers as quickly as possible, and has a robust collection of ‘help’ resources. Staff should be happy to walk you through any issues you experience so you can get on with the important business of managing your employees!
Primalogik offers award-winning performance management software for SMEs
Choose a system with all of the features listed above, and you’ll be all set to streamline your performance management process.
Priamlogik’s performance management platform contains all of the features you need to implement performance management practices that meet today’s standards. View reports, access 360-degree reviews and more in an effective and easy-to-use interface.
Small and medium-sized businesses can count on Primalogik to empower their talent and help their companies thrive. Book a free demo today!