4 Benefits of Online Performance Management
According to a study by Gartner, 70% of employees felt more valued when they experienced consistent performance management. But what exactly is performance management? It’s the continual process of evaluating an employee’s accomplishments against a set list of goals and metrics.
Though the process is often considered meticulous and time-consuming, online management software helps eliminate manual performance review pain points. In this article, we’ll discuss how businesses benefit from online performance management, so you can streamline your review process.
What is a Performance Review?
A performance review is a set time when a manager assesses an employee’s progress throughout the year. Leaders identify strengths and weaknesses and set objectives and goals for the employee to accomplish throughout the following year.
What is the Performance Review Process?
There are various ways you can conduct a performance review. The typical process, known as a performance appraisal, looks something like this:
- A manager meets with an employee once a year
- The meeting is held one-on-one between the supervisor and the employee
- The leader reviews the employee’s progress against a list of objectives agreed to at the beginning of the year
- The employee receives a rating for his or her performance
The introduction of online performance management technology has paved the way for a more successful and fluid process. The process is further streamlined when housed in an all-in-one payroll and HR platform.
How Online Performance Management Helps Businesses
According to an article by TruQu, 58% of all organizations aren’t tracking employee performance automatically. That leaves room for data errors and time wasted on manual review processes. Online performance management can help you streamline the review process and engage employees while providing the following benefits:
1. More Time and Flexibility for Managers
A CEB study found that managers spend more than five full work weeks per year on manual performance reviews. Automating the traditional review process reduces time spent on paperwork, so managers can focus on employee growth instead.
Traditionally, you might have requested a conference room and scheduled multiple performance reviews over several days. Now, you can split up reviews across different locations and time zones. This gives you the flexibility to monitor employees’ progress consistently from anywhere. Meanwhile, management software with e-signature capabilities helps you keep documentation accurate and timely.
2. Streamline Goal Setting
A payroll and HR performance management solution eliminates manual employee record-keeping. No more setting goals and digging through a filing cabinet a year later to find them. With an online performance management system, goals are not buried and forgotten.
Receive alerts and notifications to review goals in real-time, and determine whether employees are on track to meet objectives. From there, identify gaps and offer solutions to increase employee and company performance.
3. Increase Employee Engagement
According to Muse, 43% of highly engaged employees receive feedback at least once a week. Online reviews help automate feedback processes so you can consistently engage with employees. You can create detailed employee records and stay informed of milestones. Utilize key performance metrics from employee records to make decisions around rewards, promotions, career pathing, and retention.
Offer your staff the opportunity to evaluate themselves using the online system. When you understand employees’ own thoughts about their performance, you can encourage them in areas where their confidence is lacking. With streamlined managerial insight, you can help develop their weaknesses into their strengths.
4. Provide a High-Touch Experience
Performance management solutions allow you to review employees more frequently without taking additional time out of your day. They also allow you to schedule evaluations with one click, simplifying the process for both managers and employees.
Why Performance Management is Important
Online performance management is customizable for different needs. It works in conjunction with employee and manager self-service tools. An automated performance review process improves collaboration between HR and front-line managers. It also offers better follow-up compared to traditional paper reviews.
All-in-one payroll and HR platforms with performance management free managers from paperwork and provide more streamlined review processes. Employees feel appreciated and engaged in their workplace, while managers have a better pulse on each employee’s progress.
With online performance reviews, employees and managers do more meaningful, inspiring, and impactful work, transforming them into superstars empowered to succeed.
Sources
10 Shocking Stats About Employee Engagement
12 Eye-Opening Statistics About Performance Reviews
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