Kelsey Breton, Author at Omni HR

Constructive feedback, often framed as negative feedback, is one of the many challenging aspects of HR duties. Yet mastering how to give constructive feedback can help improve communication, advance employee’s skills, drive productivity, and reduce friction within teams.

The People Collective (TPC), a Slack community of HR leaders across Southeast Asia and beyond, recently hosted a conversation in Singapore where HR experts and industry leaders discussed a variety of HR topics, including navigating how to give constructive feedback. HR pros shared best practices for addressing areas of concern in the workplace to build a culture of honest and open communication that fosters growth and improves performance.

Here we explore strategies and philosophies of how to give constructive feedback, as told by seasoned HR leaders.

Give it in real time

Among the list of to-do’s for how to give constructive feedback, timing sits close to the top. While constructive feedback can be delivered at any time, doing so in close proximity to the event or behavior you’re correcting for can deepen its effectiveness.

Rather than collecting information and a list of improvements for employees, offer redirection in the moment. This provides an essential context that will help employees best understand what needs correction and how to improve.

“In a hybrid world, you have to be deeply intentional about how you check in and the various layers you check in for. And we use the word clarity a lot and clarity is actually what eventually creates belonging, creates productivity, creates motivation.”

Projjal Ghatak, CEO of Onloop

Understand what motivates each individual

Speaking of motivation, garnering a true sense of what drives your employees will write your playbook for how to give constructive feedback. Communication styles and drivers will vary from employee to employee, and it’s essential for managers and HR leaders to understand how these styles differ from employee to employee.

For example, one employee may be driven by career growth opportunities while another by collaboration. An employee driven by career growth will best receive feedback framed as an opportunity to advance, such as, “this report you’ve put together is a good starting point, but I see room for improvement that can better align you for the track of [desired role]. Let’s discuss the steps you can take to improve this deck and develop the skills that will help you progress.”

Whereas an employee who is motivated by collaboration may be better suited for an approach as such, “this report is a good starting point, but I’m seeing some blind spots that fail to address what the Product team will need to support this project. Let’s discuss how you can shift your lens to create a deck that covers a more holistic approach.”

Similarly for HR dealing with founders and the c-suite, a CEO motivated by the bottom line will be more bought in to recruit additional employees if HR frames the shortage as a productivity and resource drain rather than an employee engagement or burnout issue.

The difference in how to give constructive feedback comes down to how you position the feedback to meet individuals where they’re at and appeal to what motivates them.

“At the end of the day, feedback is about perception. How your feedback is received is what will make all the difference in its effectiveness.”

Yao Lim, CEO & Founder of Easy Consulting

Check for bias

When discussing how to give constructive feedback, the awareness of performance appraisal biases is a must. While bias is often unconscious, there are steps HR leaders and managers can take to protect against bias creeping into feedback.

First, understand the various types of biases. Here are the most common bias within performance management and assessment:

Recency bias: This occurs when more weight is given to recent events or performance, overshadowing earlier accomplishments or improvements.

Halo effect: This bias involves allowing an employee’s performance in one area to influence the overall evaluation, leading to an inflated or deflated rating.

Leniency or strictness bias: Some managers may consistently rate all employees as either high performers (leniency bias) or low performers (strictness bias), regardless of individual performance.

Confirmation bias: This occurs when managers focus on information that confirms their pre-existing beliefs about an employee rather than considering a comprehensive range of evidence.

Central tendency bias: Managers may avoid giving extreme ratings and instead opt for average ratings, leading to undifferentiated assessments that do not reflect variations in performance.

Similar-to-me bias: Managers may favor employees who are similar to them in terms of background, personality, or work style, leading to biased evaluations.

Gender bias: Unconscious biases related to gender may influence how managers assess the performance of male and female employees, potentially leading to disparities in ratings.

Cultural bias: Cultural differences may impact performance evaluations, with managers unintentionally favoring individuals from similar cultural backgrounds.

Attribution bias: This bias involves attributing an employee’s performance to internal factors (e.g., effort or ability) or external factors (e.g., luck or team dynamics) in a way that may not be accurate.

Availability bias: Managers may be influenced by easily accessible information, giving more weight to recent or memorable events rather than considering a comprehensive performance history.

Next, develop strategies in your performance management practice to help you remain objective. Here are 4 tips to implement when considering how to give constructive feedback that is free of bias:

Focus on specific and demonstrative examples rather than generalized statements
Establish clear and objective criteria for evaluating performance
Consider multiple perspectives by gathering input from colleagues or team members
Choose language that is neutral and avoids subjective terms

“We experience a lot of managers who want to reward solely on output, but people are more than output. Some people are extra valuable employees, not because they produce some significant amount, but because they’re good at relational management within the team and they kind of create the glue that holds that all together. They themselves may not be the one solving the biggest problem or working the most hours or producing the biggest thing, but they help the rest of the team continue to do that. That makes that person very valuable. Don’t overlook those people, they’re in every company.”

Projjal Ghatak

Get specific about both positives and negatives

Constructive feedback is often (incorrectly) described as negative feedback. Yet the correct approach to how to give constructive feedback is to take a well rounded approach, meaning you should address both wins and losses, strengths and weaknesses, positives as well as negatives of employee performance. In fact, one of the best ways to deliver constructive feedback is through the ‘sandwich method’ which is to offer two positive comments on either end of your ‘negative’ feedback. Here’s an example:

“Great job in today’s meeting, you were well organized and made the data easy to understand and follow. I noticed you interrupted some of your colleagues during the open discussion, something to be mindful of in the future, as it’s important to collaborate and allow room for other’s input. Thanks for your hard work, and well done on the summary points and next steps you sent out afterwards. You have a knack for sharing information and setting actionable goals for teams.”

Sandwiching is a great method for how to give constructive feedback, as it helps round out the information provided, letting employees know not only where they need to improve but also honing in on the areas in which they excel, which is equally important for development and performance.

“There’s a lot of data that being specific about strengths-based positive feedback is super important. So when someone does a good job, they usually get told, good job and move on. That is actually terrible for someone’s performance because what drives performance is having a strong understanding of your superpowers.”

Projjal Ghatak

Encourage self-feedback

While self-feedback may feel counterintuitive when asking how to give constructive feedback, it’s often a strategy that gets overlooked. This form of evaluation transcends the conventional boundaries of feedback mechanisms, acting as a mirror, reflecting your employee’s contributions, accomplishments, and challenges, while offering a pathway to continuous development.

Employees craft narratives that highlight their achievements, portraying their unique perspective on their journey within your organization. This process fosters a sense of accountability and ownership, facilitating a deeper understanding of their roles and fostering personal growth.

Self-evaluation, when used in conjunction with the above methods, can help crack the code on how to give constructive feedback that is well-rounded and effective for lasting performance improvements.

“When we have people regularly observe and reflect on how they do, the insights that you can gain from that are often even more meaningful than what you would get from peers or managers.”

Sara Fisher, Group Head of People & Culture at MoneySmart

These strategies for approaching how to give constructive feedback are just some of the insights shared during the community event hosted by The People Collective. If you haven’t already, join the dynamic community of HR leaders for more actionable insights and HR resources.

How Omni Helps HR Leaders Navigate Performance Management

The question of how to give constructive feedback will continue to have its nuances, but with the right methods, paired with the right tools, you can be on the path to effective performance management and a culture of clear and open communication.

Omni’s all-in-one HR management platform helps HR leaders and managers leverage technology to improve the effectiveness and overall efficiency of the performance management process, as well as how to give constructive feedback. The data obtained from performance management tools provide deep insight into performance patterns that traditional manual methods cannot provide, helping share constructive and objective feedback to fuel your team’s growth.

Our tools help you save valuable time from the time-consuming manual aspects of performance management, such as sending out routine communications or tracking performance review completion. When paired with a solid performance management strategy, HR teams and managers can easily achieve high-performing and engaged teams.

To learn more about how you can leverage automation to improve your performance management cycle,

Book a demo with our team today!

Seasoned professionals and entry-level employees alike possess areas for improvement, especially within their professional endeavors. These growth opportunities are often blindspots we have difficulty identifying, which is why feedback can be such a powerful tool in improving performance. However, constructive feedback does not come automatically, instead it is often sought after.

This is particularly important for managers, who as leaders of teams and projects need to stay on top of areas for improvement, and double down on effective strategies. Asking for feedback at work can be daunting (no one likes to hear critical feedback), but it is essential for personal and professional growth.

There are a few ways you can approach asking for feedback that makes the process less scary, and sets the stage for a positive discussion and a solid action plan.

Regardless of the industry that you are in, regular feedback serves as the cornerstone for individual and organizational growth. Here are the core reasons you should consider incorporating regular feedback into your workplace:

Continuous improvement: Regular feedback creates a culture of continuous improvement. It allows you and your team to identify your strengths and areas for development consistently. Instead of waiting for annual reviews, employees can make ongoing adjustments to enhance their performance, ultimately setting the stage for a more positive and less critical annual performance review.

Enhanced employee engagement: Frequent feedback demonstrates that leaders are invested in their employees’ success. This engagement contributes to higher job satisfaction and a sense of being valued. Both managers and employees are likely to be more motivated and committed to their roles when receiving regular feedback.

Timely recognition: When asking for feedback becomes part of the corporate culture, it allows for timely recognition of achievements. Immediate recognition boosts engagement, motivates employees, and reinforces positive behaviors. Conversely, delaying acknowledgement of good work can take the shine off it, and reduce the morale-boosting impacts.

Course correction: Timely feedback allows you to make appropriate adjustments to your work approach, before any serious action needs to be taken. If either a team member or manager is veering off track or facing challenges, asking for feedback regularly provides the opportunity to address issues promptly. This offers the agility to maintain productivity and prevent minor issues from escalating.

Alignment with goals: Regular feedback ensures that employees are aligned with organizational goals. It provides a platform to discuss individual and team objectives, making necessary adjustments to align everyone with the broader mission. This alignment is crucial for the overall success of the organization.

Employee development: For professional growth and development, constructive feedback on performance is essential. Regular discussions and 1-on-1 meetings about strengths and areas for improvement clarifies and highlights areas for potential growth. Your leaders and team can recommend training, mentorship, or resources to support your skill development.

Building trust and relationships: Regular feedback builds trust between you and your team members. It creates a space that promotes open communication and a sense of transparency. When your employees know that feedback is a continuous dialogue, they are more likely to share their concerns and ideas openly.

Adaptation to change: In a fast-paced work environment, frequent feedback helps you and your team adapt quickly to new challenges. It provides insights into how well you are navigating change and offers guidance on adjustments needed for success.

Things to Know About Asking For Feedback

Approaching someone for feedback is a strategic move that goes beyond just gathering information about your performance. It is a proactive step towards personal and professional growth, and here is why it matters:

Asking for feedback showcases humility and a willingness to learn. It sends a powerful message that you are open to constructive criticism and committed to self-improvement. This quality is highly regarded in professional settings.

This in turn fosters stronger professional relationships. It creates a culture of mutual respect and trust. When colleagues and supervisors see that you value their opinions, it strengthens your connections with them.

It encourages open communication and builds a culture of feedback

Requesting feedback encourages open communication. It breaks down barriers and makes it more likely for others to share their perspectives. This openness is crucial for a collaborative and communicative work environment.

When you are actively asking for feedback, it contributes to building a broader culture of feedback within the organization. It sets a positive example for others, encouraging a two-way flow of information that benefits everyone.

It drives personal development and helps you reach your goals

Actively seeking feedback is a proactive approach to personal development. It allows you to identify blind spots and areas for improvement that you might not be aware of. This then accelerates your growth and enhances your skills.

Understanding how your actions impact others is crucial for goal achievement. Regular feedback provides insights into whether you are on the right track and helps you make necessary adjustments to stay aligned with your objectives.

It helps on aligning expectations

Asking for feedback helps to align expectations. It ensures that you are aware of how others perceive your work and contributions. This alignment is essential for avoiding misunderstandings and maintaining clarity in professional relationships.

It boosts your self-awareness

Asking for feedback enhances self-awareness. It allows you to see yourself through the eyes of others, providing valuable insights into your strengths and areas that may need attention. This self-awareness is a key driver of personal and professional success.

Approaching someone for feedback is not just about receiving information—it is a strategic move that contributes to a positive work culture, enhances professional relationships, and accelerates personal development. It is a skill that, when mastered, becomes a powerful tool for continuous improvement.

How to Ask for Feedback

While asking for feedback should be a common practice, employing a little finesse and tact goes a long way. Here are some elements you should consider when asking for feedback:

Choose the right time and place: Timing matters. Select a time when the person you are seeking feedback from is not under intense pressure or stress. Choose a comfortable and private setting that promotes open and honest communication.

Be specific in your request: Clearly articulate what you are seeking feedback on. Whether it is a specific project, a presentation, or your overall performance, being specific helps the other person provide targeted and actionable insights.

Express your intentions: Begin the conversation by expressing your genuine interest in improvement. Communicate that you value the other person’s opinion and are seeking feedback in good faith as a means to grow and enhance your skills.

Use open-ended questions: Frame your questions in a way that invites detailed responses. Avoid yes or no questions and instead ask open-ended ones, encouraging the person to share their thoughts, experiences, and suggestions. This has the added bonus of encouraging exposition and reduces the chance you misinterpret the intent of the feedback.

Request both positive and constructive feedback: Indicate your interest in hearing about both strengths and areas for improvement. This balanced approach ensures a comprehensive view and shows that you are open to acknowledging and addressing weaknesses.

Be prepared for all types of feedback: Mental readiness is crucial before you ask for honest feedback. Be prepared to receive it, whether positive or constructive, with grace and an open mind. Avoid becoming defensive, and instead, use the feedback as a valuable source of information.

Seek feedback from multiple sources: Diversify the sources of your feedback. Don’t limit yourself to a single person’s perspective—gathering insights from various colleagues, supervisors, and even peers provides a more holistic view of your performance.

Show appreciation: Thank the person for taking the time to provide feedback and acknowledge their efforts in helping you improve. This appreciation reinforces a positive feedback loop and encourages ongoing communication.

Follow up on action items: If the feedback includes actionable items, this is the perfect opportunity to demonstrate your commitment to improve by following up on them. This not only shows your dedication but also highlights your proactive approach to your own growth.

Reflect and apply: Take time to reflect on the feedback received. Consider how it aligns with your own perceptions and goals. Apply the insights gained to enhance your skills and refine your approach in future endeavors.

Mastering the art of asking for feedback is essential for professional development. You have the opportunity to set a great example for a culture of continuous improvement, and ultimately strengthen relationships, and propel personal and organizational success. Approach these conversations with a genuine desire to learn and grow, and you will find that feedback becomes a defining element of your career development.

Learn More:

Questions to Ask When Asking For Feedback

When you are asking for feedback, the questions themselves play a central role in gaining meaningful insights. Consider incorporating these questions into your conversations:

Start on a positive note by inviting the person you are chatting with to share aspects they believe were successful. This helps set a constructive tone for the feedback session.

What areas can I improve on?

Encourage specific feedback on areas of improvement. This question provides valuable insights into aspects that may have been overlooked previously or need further development.

Are there specific skills you think I excel at?

Acknowledge and build on your strengths by asking about specific skills or qualities that the person perceives as your standout attributes. This question aids in recognizing and leveraging your strengths.

How did my contribution impact the overall outcome?

Gain an understanding of the broader impact of your contribution. This question helps you see the interconnectedness of your work within the team or project.

Can you share an example or specific incident that stood out to you?

Request concrete examples to add depth to the feedback. Anecdotes or specific incidents provide context and make the feedback more actionable.

Do you have any suggestions for approaching similar situations differently?

Explore alternative approaches by asking for suggestions on handling similar situations. This question shows a forward-looking perspective and demonstrates your openness to learning.

How can I better support the team or project in the future?

Emphasize your commitment to collaboration and improvement by seeking input on how you can increase your support for the team or project moving forward.

Are there training or development opportunities that you recommend?

You can demonstrate a proactive attitude towards your professional development by asking about potential training or development areas. This showcases your commitment to continuous learning.

What would you like to see more of in my contributions?

Tailor your contributions to align with expectations by asking about preferences. This question helps you understand what the person values and desires in your work.

Is there anything else that you would like to share or highlight?

Provide an open space for additional comments. This question allows the person providing the feedback to share any insights or perspectives that may not have been covered by the previous questions.

If you are still unsure, check out our ultimate performance review questions template for more inspiration or ideas when it comes to asking for feedback. The goal is to create a dialogue that fosters growth and improvement. Thoughtful questions not only elicit valuable feedback but also contribute to building a collaborative work environment.

Omni Empowers a Feedback-Driven Culture

Asking for feedback regularly in the workplace can be the fastest route to growth and improved performance. If you want to avoid uncomfortable conversations despite feeling stuck, it might worsen the situation over time. Hence, it is up to you to change the situation and gain feedback to reach a possible solution or insight into the current situation. These conversations are important as it is practical, fosters mutual trust and honesty.

Omni makes it easy to communicate with your team with customizable templates and automated communications for instant feedback loops that promote increased employee engagement and high-performing teams.

With HR becoming increasingly vital to the success of organizations around the world, an increasing number of companies are shifting their focus to sourcing talents internationally for various reasons such as cost-effectiveness, accessing better HR technology or to stay compliant. While hiring remote workers is a possibility, many are finding a different option more compelling—outsourcing.

This is no different in the Philippines, which has been experiencing explosive growth over the last decade, and commands a position as a global business powerhouse. That means HR outsourcing Philippines is a topic that leaders and HR professionals will have to carefully consider.

However, there is a lot that needs to be taken into consideration before you commit to HR Outsourcing. Here’s what you need to know:

What is HR Outsourcing?

If it is not in-house, it is outsourced. For businesses in the Philippines, that means partnering with third-party organizations to manage different HR roles and functions. HR outsourcing Philippines encompasses a range of services, including recruitment process outsourcing (RPO), payroll outsourcing, benefits administration, employee training, and compliance management. Companies can choose to outsource specific HR functions or opt for end-to-end HR outsourcing solutions.

Organizations looking for HR outsourcing Philippines typically partner with specialized service providers, who are experts in a specific area. This offers access to expertise, technology, and resources to efficiently manage individual processes, offering peace of mind that HR is in the right hands, and allowing business leaders to focus on other areas of their organization.

Reasons for HR Outsourcing Philippines

Like elsewhere, HR outsourcing Philippines offers a range of potential benefits, depending on the nature of your organization, and your goals within your Human Resources department.

Cost efficiency: HR outsourcing allows businesses to tap into a global talent pool, potentially at a fraction of maintaining an in-house HR team. This cost-effectiveness is particularly attractive for small and medium-sized enterprises (SMEs), who may lack the large budget to justify an in-house team. A global pool of potential HR partners allows for organizations in the Philippines to search around for a solution that aligns with their needs within their budget.

Scalable solutions: Whether it is recruitment, training, or compliance management, your business can access specialized HR services that scale according to your evolving needs. This scalability means organizations in the Philippines can quickly adapt to changes or rapid growth, increasing their outsourced HR resources as needed, rather than going through the lengthy process of recruiting new in-house HR professionals.

Strategic focus: HR outsourcing Philippines allows businesses to concentrate on core competencies and strategies, rather than having to develop skills in the often challenging and tricky-to-navigate world of Human Resources. With basic administrative HR tasks managed externally, your organization can allocate more resources to business growth, innovation, and employee satisfaction.

Compliance and risk management: Providers of HR outsourcing help businesses in the Philippines adhere to local regulations, reducing the risk of legal complications and labor disputes. By entrusting HR responsibilities to outsourced experts, businesses in the Philippines can minimize compliance issues, employee relations, and legal challenges. This is a proactive approach that protects your company’s reputation, and maintains a safe and legal workplace for your employees.

Operational continuity and global support: HR outsourcing Philippines means organizations can tap into global support, so companies can maintain efficient HR operations even in a distributed or international work environment. It also means businesses can access HR support around the clock, regardless of timezone, which is particularly beneficial for global and remote teams.

Challenges of HR Outsourcing Philippines

While HR outsourcing Philippines brings numerous benefits, it is not without its potential challenges. Understanding these challenges will help your organization decide if outsourcing is the right choice.

Cultural alignment: Despite the Philippines’ proficiency in English and familiarity with international business practices, cultural nuances can still impact communication and collaboration. Ensuring cultural alignment between the outsource provider and the business is necessary for effective HR. For instance, if your outsourcing takes place in English, but your team speaks mostly Tagalog, it could be difficult for effective team management.

Data security concerns: Handling sensitive employee data requires robust security measures. Your business needs to carefully assess the data protection practices of outsourcing partners to prevent unauthorized access or data breaches, all while staying compliant with privacy regulations.

Quality of service: Maintaining the same standard of quality as an in-house HR team can be a challenge. Be it timezone issues, communicating remotely, or simply lacking a comprehensive understanding of your business, outsourcing may be lacking in some of the benefits that having an in-house HR team brings. Hence, your organization should establish clear performance metrics and expectations, regularly assessing the outsource provider’s delivery against these benchmarks.

Integration with company culture: Outsourced HR services may face challenges in aligning with the unique culture of your organization. This is particularly important for HR functions involving employee engagement, where understanding and embodying the company culture is necessary.

Communication and collaboration: Effective communication is necessary in all departments, and this is especially the case for HR. Differences in time zones, communication styles, and language nuances may pose challenges, especially if the culture of the outsourced HR service is very different from your own organization. Regular and clear communication channels should be set up, and check-ins done frequently to address any potential issues.

Legal compliance: The Philippines has specific labor laws and regulations that businesses must adhere to. It is crucial to ensure that the outsource provider is well-versed in local employment laws to ensure compliance and avoid any legal complications.

HR Outsourcing Philippines Alternatives

While traditional HR outsourcing Philippines is a common practice, businesses can take alternative approaches to meet their HR needs. These provide flexibility, control, and customization, designed to meet the unique needs of different organizations.

Hire a global team

Establishing an in-house global HR team involves recruiting and managing HR professionals in-house, but sourced from around the world, providing companies with direct control over their Human Resources functions and broadly expanding their talent pool.

This approach works for organizations that prioritize a hands-on approach to talent management, employee relations, and company culture. Having a dedicated team in-house allows for real-time collaboration, swift decision-making, and a deep understanding of the company’s global strategy. Companies can tailor their HR strategy to align with specific organizational goals and help develop a cohesive and closely-knit working environment.

Leverage automation tools

Automation tools have become essential for increasing HR efficiency by automating repetitive tasks and processes—many of these tasks being prime candidates for HR outsourcing.

These tools play a key role in lowering dependency on external providers and reducing the costs associated with HR outsourcing and manual errors. Payroll processing, attendance tracking, and performance management are among the many functions that can be automated, freeing up your team to focus more on strategy and less on paperwork. Automation not only increases efficiency but it also minimizes errors and helps ensure compliance with changing regulatory requirements.

Invest in HRIS

Leveraging a comprehensive Human Resources Information System (HRIS) offers your organization an integrated solution for managing all HR functions simultaneously. This includes employee data management, benefits administration, and advanced analytics that lead to actionable performance insights.

A good HRIS offers a centralized platform that streamlines HR operations, providing a holistic view of your workforce. It helps with better decision-making by offering insights into employee performance, engagement, and other important HR metrics. This empowers your organization to enhance your HR capabilities without over-reliance on external providers.

Learn More:

How Omni Supports Philippines HR Teams

Omni offers a customizable, all-in-one HR solution that easily adapts to how companies in the Philippines operate.

With Omni, you’ll be getting remarkable efficiency through a fully automated and highly customizable platform. Our intuitive platform encompasses a wide range of features to create a highly engaged and efficient work environment for your team to thrive.

Omni frees HR teams from administrative cycles by automating the entire end-to-end employee lifecycle—from recruitment and onboarding to employee engagement and payroll— allowing you to redirect your time to strategic work that drives business growth.Our easy-to-use training modules, automated reminders, and personalized communication ensure an efficient and seamless experience that saves you time and offers your team a customized support experience that is designed to adapt and grow alongside your business.

Omni’s solutions are built by regional teams in Asia for modern teams in Asia. With localized support in the Philippines timezone, your team can access the support they need at the time they need from a team that understands the nuances of Filipino culture and business at a localized price that won’t break the bank.

Book a free demo today and see why Omni is one of the best alternatives to HR outsourcing in the Philippines!

Effective Human Resources takes more than just humans—it takes resources too. The best HR teams are well-funded, and equipped with the money they need to invest in the people that ultimately drive organizational success.

But it’s not just about having access to financial support, it’s about how that money is allocated to maximize its impact. That’s where a well-planned HR budget comes in, a firm financial guide that will help you and your team devise where your money is spent, and predict the outcomes it will have.

Here, we’re diving into the nitty gritty of what makes an HR budget more than just a sheet of facts and figures, and instead makes your HR department an essential part of the organization-wide strategy.

Like all budgets, an HR budget is a financial plan that outlines how a Human Resources department will allocate their resources. It serves as a roadmap for managing the expenses related to all HR functions, and acts as a guide to ensure financial resources are properly distributed to meet all business needs, without overspending.

Expenditures you can expect in an HR budget include employee salaries, recruitment costs, training and development programs, benefits administration, HR technologies, and initiatives aimed at enhancing the overall employee experience.

Crafting an effective HR Budget is essential for aligning HR activities with the broader financial strategy of your organization. Done effectively, it will help create and advance effective workforce and performance management and development.

Why Plan an HR Budget?

While planning a budget doesn’t exactly scream “excitement,” creating a proper HR budget is one of the most strategically significant steps a successful organization can take.

Managing the costs of human capital — One of the most important functions of an HR budget is to manage the costs associated with the people who work for your organization, sometimes called “human capital”. By carefully forecasting and allocating resources, your HR department can prevent overspending, inefficient allocation of resources, and ensure that your organization invests sufficiently in its most valuable asset—its people. A well-planned HR budget also offers the flexibility to reallocate resources when circumstances change, like when an organization needs to quickly grow its head count.
Ensuring HR operational efficiency — An HR budget is the guide to follow for resource allocation, providing a comprehensive view of where and how funds will be spent, and what initiatives take priority. This clarity maximizes efficiency and helps HR teams to align their activities with strategic objectives, avoid resource bottlenecks, and streamline processes.
Achieving organizational success — As all HR professionals know, the success of an organization is directly linked with the effectiveness of its Human Resources. A well-planned HR budget helps you optimize the potential of your workforce, and fosters a culture of productivity, engagement, and continuous improvement, each initiative receiving proper funding as allocated by the HR budget. It also allows you to anticipate and adapt to regulatory changes, helping you stay agile, and future-proof your HR strategy.
Having a seat at the decision-making table – These days, HR is increasingly expected to be a strategic partner with leadership. In fact, 60% of executives expect HR to become partners in improving a company’s competitive advantage. A well-planned budget is more than a financial document—it’s a key to the decision-making table. By presenting a comprehensive budget plan, HR professionals elevate their role from administrative support to strategic contributor, demonstrating how HR initiatives align with and drive broader organizational objectives. This strategic positioning is crucial as businesses recognize HR’s essential role in driving the overall success of the company.

Building a comprehensive HR budget involves considering all the areas that directly impact employee well-being and organizational growth. Here’s a breakdown of essential components to consider in your HR budget:

Talent Acquisition & Recruitment: Allocate funds for recruitment efforts, including job postings, recruitment software, and staffing resources. A well-funded talent acquisition strategy ensures a robust pipeline of qualified candidates. When allocating resources for talent acquisition consider—what is the growth trajectory of your company? This is a perfect example of where HRs role can become strategic and forward-thinking.

Learning and Development: Invest in employee growth and skill enhancement programs. Include allocations for training sessions, workshops, and online learning platforms to promote continuous learning within the organization.

HR Upskilling: As technology and industry landscapes evolve, earmark funds for upskilling HR professionals. This ensures that the HR team grows their skillset and can leverage the latest tools and strategies.

HR Technology: Allocate resources for HR technology tools and platforms. This includes HRIS (Human Resource Information System), payroll software, performance management systems, and other technologies that enhance HR efficiency. With the explosion of HR technology available to you, carefully consider which options offer the most value to your organization, and budget accordingly. Also consider the resources required to train your employees on any new technology they need to incorporate into their skillsets.

Compensation and Benefits: Of all budget lines, this one is likely to receive the most scrutiny and interest. Include allocations for employee compensation, benefits packages, and incentives. This encompasses salaries, bonuses, health benefits, retirement plans, and any additional perks that contribute to employee satisfaction and retention. Adequate compensation is incredibly important for keeping talented employees on board, and motivating employees to perform at their best.

Diversity, Equity, and Inclusion: Prioritize diversity, equity, and inclusion initiatives by allocating funds for programs and activities that foster an inclusive workplace culture. This may include diversity training, mentorship programs, and events that celebrate diversity. Initiatives that promote diversity are especially important as Gen Z becomes a major part of the workforce, as shared values are a major motivating factor for them.

Employee Relations and Talent Management: Devote resources to employee relations programs that enhance workplace harmony, such as town halls, social events and skill development opportunities. Also, budget for talent management initiatives such as succession planning, performance reviews, and employee engagement activities.

Employee Safety and Well-being: Make employee health and safety a priority in your HR budget by allocating funds for workplace safety measures, wellness programs, and mental health initiatives. This not only protects your employees but also contributes to a positive work environment, and a workforce that feels safe and respected in their workplace.

HR Administration: Cover essential administrative functions of the HR department, including salaries of HR staff, office supplies, and other day-to-day operational expenses. While not as high profile as other budget lines, having adequate coverage of admin costs is essential to the smooth functioning of an HR department.

Tips to Building an HR Budget

Creating an effective HR budget means delving into strategic planning and developing a thorough understanding of what your organization needs. Having a clear view of how your strategy ladders up to the success of your organization is key when setting up your budget.

Define business goals

The first step of creating an HR budget is aligning it with overarching business goals. If your company aims for rapid growth, allocate resources to talent acquisition and onboarding. If innovation is a key objective, earmark funds for learning and development initiatives to upskill your workforce.

Remember, as an HR professional you’ll have a clearer view of how your workforce will respond to growth and new initiatives, and you have the opportunity to not only understand business objectives, but actually help shape them.

Review previous spending

Next, examine historical spending patterns with a critical eye. Identify areas where resources were well-utilized and those that might need adjustment. For instance, if a particular training program yielded high employee retention, consider expanding it. Alternatively, if surveys indicate an employee engagement initiative or training program is being ineffective or underused, consider reallocating resources to more successful campaigns.

Forecast workforce needs

You can anticipate future talent requirements by understanding the evolving needs of the business. Assess the skills your workforce possesses and those needed for upcoming projects or strategic shifts. This ensures that your budget addresses the organization’s changing dynamics.

Analyze data

Leverage HR analytics for data-driven decision-making. Metrics such as turnover rates, performance metrics, and employee satisfaction scores provide valuable insights. Use this data to pinpoint areas for improvement and allocate resources accordingly. Collecting and analyzing data also helps you make informed strategic recommendations, based on solid information.

Hope for the best, plan for the worst

Even the best laid plans can face disruption. It’s simply impossible to predict everything. That’s why your budget needs to include contingency plans for unexpected challenges. If your budget is contingent on revenue projections, build safeguards for economic downturns. Establishing a financial buffer allows the organization to navigate unforeseen circumstances without compromising HR initiatives.

Consider investments

Evaluate HR initiatives as strategic investments. For instance, if you’re considering HR technology, weigh the potential benefits in terms of time saved, improved accuracy, and enhanced employee experience. Ensure that each investment aligns with your organizational goals. Money spent this year could have positive impacts in years to come if invested wisely now.

Leverage tools

Explore modern HR budgeting tools that automate processes and provide real-time insights. These tools often come with features like predictive analytics, facilitating more accurate forecasting. Integration with other HR systems ensures seamless collaboration and data consistency.

Save On HR Costs Through Automation

HR automation helps save significant time and reduce costs associated with the various manual tasks performed every day by HR and leadership. Studies have shown HR automation can decrease administrative costs by 30% for HR professionals and 49% for employers.

Routine HR workflows, such as data entry, employee onboarding, leave management, and payroll processing, are streamlined and automated, freeing up HR teams to focus on more strategic and value-added activities that drive productivity and profitability for your organization.

What’s more, HR automation tools like Omni provide clear and timely insights into your organization’s spending, helping you build and audit your HR budget backed by real data.

Learn how Omni users like Unravel Carbon save thousands of dollars annually by leveraging HR automation tools. If you’re ready to make that jump and take charge of your HR budget,

The Malaysia Payroll Process

The Malaysia payroll process is intricate, combining legal regulations, cultural considerations, and economic dynamics. At its heart is balancing factors like minimum wages, working conditions, and employee leave, all governed by a framework set by Malaysia’s Employment Act. Here’s what you need to know to navigate the ins and outs of Malaysia’s payroll process:

Minimum wages and working conditions

Malaysia’s minimum wage has gone through significant development throughout the years. Previously, the minimum wage varied depending on the location of the employer, with different rates for Peninsular Malaysia, Sabah, Sarawak, and the Federal Territory of Labuan. However, as of 1 May 2022, the minimum wage throughout Malaysia has now been aligned from RM1,200 to RM1,500 per month.

Working conditions are governed by Malaysia’s Employment Act, and range from considerations like rest days, to working hours and public holidays. In Malaysia, there are special provisions for women in the industrial or agricultural sector where they are not permitted to work between the hours of 10PM to 5AM.

An amendment to the Employment Act that occurred in 2022 entitles employees to apply for a flexible working arrangement to vary the hours, days, or place of work. The employer has 60 days to approve or refuse the request, and if refused, reasonable grounds for refusal must be provided.

Learn More: Understanding Malaysia’s Employment Act: Updates & FAQs in 2023

Working hours

General: The standard working hours are 48 hours per week, spread over five (or in some cases, six) working days. The typical workday in Malaysia is eight hours.

Overtime: If an employee works beyond the standard hours, they’re entitled to overtime pay. For most of the Malaysia payroll system, overtime rates are 1.5 times the normal hourly rate for work on normal working days and the first eight hours on a rest day or public holiday. For work beyond the eighth hour on a rest day or public holiday, the rate is usually double.

Working Week: In Malaysia, the workweek commonly runs from Monday to Friday. However, some industries or positions might require work on Saturdays. These include industries like retail, hospitality, and other service-based roles.

Employee Leave

Public holidays: Malaysia observes a range of public holidays, including both national and state-specific. The total number of public holidays varies by state. Employees are typically entitled to a day off with full pay on these holidays.

Sick leave: The Employment Act allows for a minimum of 14 days of sick leave with full pay in a calendar year, assuming the employee has been employed for at least four months.

Parental leave

Maternity: Employed mothers are entitled to a maternity leave of 14 weeks.
Paternity: Employed fathers are generally entitled to one week of paternity leave.

Payroll frequency

In the Malaysia payroll system, the most common pay structure is monthly (employees receive their salary payment at the end of each month). That said, variations can occur depending on the specific industry.

For instance, certain industries or specific companies might adopt a bi-weekly or even weekly payroll cycle, especially in sectors where contractual or temporary employment is common. These variations are usually outlined clearly in employment contracts or company policies to manage employee expectations.

13th-month salary

The 13th-month salary is a unique aspect of the Malaysia payroll landscape. It represents an additional month’s salary, usually paid out at the end of the calendar year.

It is a customary practice in Malaysia payroll and serves as a form of recognition for employees’ contributions throughout the year. While not mandatory, it has become a standard practice for many organizations, and contributes to the festive spirit of the holiday season, helping motivate employees and boost engagement. The amount may vary based on company policies, industry standards, or individual employment contracts.

Probation period

During the probation period in Malaysia (which typically lasts three to six months) employers take time to see if a new hire is a right fit for their role. The terms and conditions of employment during the probation period are outlined in the employment contract, covering aspects such as notice periods, performance expectations, and potential benefits.

Employees on probation often receive a prorated salary, and the employer has the flexibility to terminate the employment with less red tape than under standard employment.

Employer contributions

In the Malaysia payroll system, employers need to make contributions to the Employees’ Provident Fund (EPF) for their employees. The EPF manages employees’ retirement savings and employers are required to contribute a certain percentage of their employees’ monthly salary to the EPF.

Employee contributions

Employees in Malaysia are also obligated to contribute a portion of their monthly salary to the EPF. The employee’s share is deducted from their salary and alongside the employer’s contribution, it is deposited into the employee’s EPF account. The combined contributions form a substantial part of an employee’s retirement savings.

Employees’ provident fund (EPF)

As noted above, the EPF is a key part of the social security framework in the Malaysia payroll system. The funds accumulated in an employee’s EPF account serve as a financial cushion during retirement. Employees can also use their EPF savings for housing, education, and medical purposes. The EPF is managed by the Employees’ Provident Fund Organization, and its policies and contribution rates are updated occasionally by the government to keep up with economic conditions and retirement needs.

In addition to the Employees’ Provident Fund (EPF), the Malaysia payroll system has a comprehensive social security system managed by the Social Security Organization (SOCSO). SOCSO plays an important role in providing protection to employees in the unfortunate event of work-related injuries, illnesses, or disability. This social safety net has two main components:

Employment Injury Insurance Scheme (EIIS):

The EIIS is designed to provide coverage for employees who experience injuries or illnesses associated with their work. This includes accidents that occur during working hours or diseases contracted due to workplace conditions.
The scheme is applicable to all Malaysian citizens, permanent residents, and foreign workers, with the exception of domestic servants.
In the event of a work-related injury or illness, employees can seek compensation and financial support through the EIIS.

Invalidity Pension Schemes (IPS):

The IPS provides financial assistance to employees who become permanently disabled or die due to causes unrelated to their work. This coverage extends beyond work-related scenarios, offering protection for a wide range of life circumstances.
In the case of permanent disability or death, the scheme provides financial support to the affected employee or their beneficiaries.

Employment Insurance Scheme (EIS)

The Employment Insurance Scheme (EIS) is another key component of the Malaysia payroll system’s social security framework. It focuses on providing financial assistance to employees who have lost their jobs involuntarily. Key features of the EIS include:

Unemployment Benefits: Employees who lose their jobs are eligible to receive financial assistance for a specified period. This support aims to help individuals during the time spent between jobs.

Job Search Allowance: The EIS also offers a job search allowance to assist unemployed people in covering expenses related to finding new employment.

Training Opportunities: The EIS provides opportunities for training to people facing unemployment, to help them develop employable skills and learn new technologies like AI.

Learn More: How to Apply, Claim, and Select Training Programs for HRDF Malaysia

Both SOCSO and the EIS are major parts of a broad safety net for employees, ensuring that they have financial support during challenging times. Employers are responsible for making contributions to these schemes on behalf of their employees, highlighting a shared commitment to employee well-being and social security.

Work Permits

The Malaysia payroll system has established several types of work permits to regulate the occupation of foreign professionals. Here’s what you need to know about the main categories of work permits:

Professional Visit Pass

The professional visit pass is for foreign nationals working in short-term professional activities or assignments in Malaysia. This pass is granted for short durations, often for specific projects or business meetings. It is relevant for employees involved in professional services, including consultancy, auditing, and attending conferences.

Temporary Employment Pass

This pass is geared towards foreign workers taking up temporary employment in Malaysia. It is issued for a set duration, with a possibility of renewal. The Temporary Employment Pass is for employees working in sectors with a temporary labor demand, such as construction and agriculture.

Employment Pass

The Employment Pass is targeted at skilled foreign professionals taking up long-term employment in Malaysia. It is issued for a longer duration (often over a year), and is usually tied to an employment contract. This pass requires employees to meet specific criteria related to qualifications, work experience, and job scope.

Work permits by region

Peninsular Malaysia: This region is the hub of economic activities and business centres in Malaysia, making it a focal point for work opportunities. The region is divided into three distinct zones: the Northern Zone, the Central Zone, and the Southern Zone.

Each zone has its own unique Malaysia payroll characteristics, and different regions within each zone might have specific considerations for work permits based on local demands and regulations. For example, the Northern Zone is known for its agricultural activities (which are usually associated with Temporary Employment Passes), while the Central Zone is home to the capital city of Kuala Lumpur, which is the centre of the country’s financial and commercial activities, and would more commonly have foreign workers seeking an Employment Pass.

East Malaysia (Sabah and Sarawak): These regions, known for their unique cultural and economic characteristics, may have distinct requirements for work permits. Sabah is known for its ecotourism industry, while Sarawak is home to the largest cave chamber in the world and is a major producer of timber, industries where Temporary Work Passes would be more common. Both employers and employees need to be aware of regional differences to make sure they are compliant with the Malaysia payroll law when applying for work permits.

Documentation Requirements:

Securing a work permit in Malaysia comes with its complexities, and requires careful documentation. Both employers and employees must adhere to requirements that are designed to facilitate a smooth application process. Here are the documents you need to be aware of:

Passport and Visa: A valid passport and visa are the basic requirements for any work permit application.
Employment Contract: A detailed employment contract specifying terms and conditions of employment.
Educational and Professional Certificates: Proof of educational qualifications and professional certifications relevant to the job.
Letter of Offer: A formal letter from the employer offering the job to the foreign national.
Health Examination: In some cases, a health examination report might be required to make sure the applicant is healthy and fit for work (mainly for jobs with demanding physical labor like construction).

It is important to verify the specific documentation needed for the nature of employment. Working closely with immigration authorities or legal professionals is a good way to help streamline the application process and avoid obstacles.

Tax

Understanding the tax landscape in the Malaysia payroll system is necessary for both employers and employees to have a clear view of total compensation, and maintaining compliance. Here’s a breakdown of the key aspects related to employer and employee taxes:

Employer Tax

Employers in Malaysia are responsible for deducting income tax from their employees’ salaries through the Monthly Tax Deduction (MTD) system. The deducted amount is then transferred to the Inland Revenue Board (IRB).

Employee Tax

For Residents: The Malaysia payroll system employs a progressive tax system for residents, where tax rates increase with higher income brackets. This ensures that those with higher earnings contribute more to the tax revenue based on their means.

For Expatriates: Higher-income expats might benefit from a flat tax rate on their employment income, which is applicable for a specific duration, typically up to five years. This acts as an incentive for skilled professionals to work in Malaysia.

Tax Return Form

Both residents and expatriates are required to file their income tax returns annually. The Malaysian government encourages using the e-Filing system, which is a convenient and efficient way to submit tax returns online. This system makes the tax process easier and more efficient, reducing paperwork, and ensuring accurate reporting.

Severance Pay

In the Malaysia payroll system, severance pay (also known as termination or retrenchment benefits) is another major part of the employment safety net. It serves as financial protection for employees facing involuntary job loss, and protects their well-being after finding themselves unexpectedly unemployed.

Severance pay in the Malaysia payroll system is not mandated for voluntary resignations. But for involuntary terminations, the Employment Act 1955 and the Industrial Relations Act 1967 govern the compensation process. For most employees who lost their jobs, employers are required to offer termination benefits.

Calculating severance pay depends on factors such as length of service, nature of termination, and terms outlined in an employment contract. Most often, employees with longer service are entitled to more substantial severance packages than employees who worked for shorter stints.

Streamline Your Payroll Services with Omni

Navigating the ever-evolving regulations of Malaysia payroll can be challenging, and staying up to date with the latest mandates is crucial for HR teams to remain compliant.

Omni helps HR teams stay up to date with the latest laws and regulations while streamlining the end-to-end employee management lifecycle. Our comprehensive payroll solution is tailored to Malaysia’s specific requirements. With features like support for MYR, automated tax calculations, and instant payroll reports, Omni can help HR teams simplify their payroll processing while ensuring compliance.

Omni handles more than just payroll, with our dynamic time off management feature, managers and HR teams can swiftly navigate employee leave management. Our employee self-service portal allows employees to submit their time off requests directly to HR without any intervention and with automated calculations and real-time leave balance tracking, HR teams can effortlessly calculate paid time off and hours worked for payroll purposes.

For organizations with global teams, Omni’s comprehensive employee database facilitates easy tracking of immigration details, visa status, and ensures compliance with local minimum wage requirements. Our automated localized calendars further guarantee that you honor local holidays, no matter where your teams are based.

Start your 14 days free trial today and see how Omni can simplify the intricacies and complexities of Malaysia payroll processes and minimize the costs associated with common errors.

What is an End of Year Employee Review?

End-of-year employee reviews (also referred to as annual performance reviews or appraisals) are structured assessments employers use to evaluate their employee’s performance over the course of a year. They serve as a formal opportunity for employers and employees to have a constructive dialogue about job performance, accomplishments, areas for improvement, and career development, and are an essential component of performance management.

Unlike a weekly check-in or 1-on-1 meeting where quick feedback is exchanged, end of year reviews need to be carefully structured. This structure ensures a fair and consistent evaluation across the workforce and tamps down on performance appraisal biases.

Because they take place at the end of the year, these reviews are the perfect time to reflect on the goals set at the beginning of the year. Taking a look at how (and if) performance review goals were met offers insights into an employee’s effectiveness and contributions.

Successful end of year employee review examples include an exchange—rather than one-way feedback, use these moments as an opportunity for employees to share their perspectives on their performance, career aspirations, and any challenges they may have faced. These reviews are where recalibrations are made if needed, and employees are prepped for success in the new year.

Given the importance of these reviews and their formal structure, you couldn’t be blamed for finding them a bit intimidating. But fear not—in subsequent sections we’ll be taking a deep dive into end of year employee review examples which you can take inspiration from as you approach your own end of year reviews.

The Importance of Employee Reviews

Employee reviews are more than just a formality—they’re an essential part of all successful organizations’ talent management strategy. Here’s why they matter:

Performance improvement: Honest and constructive feedback provides employees with insights into their strengths and areas for improvement. This helps them grow professionally and contribute more effectively to your organization.

Goal alignment: Reviews offer an opportunity to assess whether an employee’s work aligns with your organization’s goals. It’s the perfect chance to celebrate achievements and realign objectives if necessary, making sure everyone is moving in the same direction.

Employee engagement: Regular feedback builds a sense of engagement and involvement. When your employees feel heard and valued, they’re more likely to be invested in their work and committed to the success of the organization.

Career development: Reviews are a natural platform for discussing career aspirations. Understanding an employee’s career goals allows for better planning and ensures that your organization can provide the necessary support and opportunities for growth.

Training opportunities: Through reviews, employers can identify areas where additional training or development opportunities might be beneficial. It allows for employers and employees to be proactive, ensuring growth in the right directions and pre-empting any course corrections that would need to be taken down the road.

Tips to Apply to End of Year Employee Review Examples

Now, we’re going to dive into a strategy you can apply to your own end of year employee review examples. Here are some tips to help maximize the impact of these important performance reviews:

Review performance frequently throughout the year: Regularly reviewing performance throughout the year can help ensure that employees are on track and there are no surprises during the end of year review.
Make your performance review a two-way conversation: Making the performance review a two-way conversation can help employees feel more engaged and invested in the process.
Prioritize objectivity: Prioritizing objectivity will help ensure that the review is fair and unbiased. Exceptional end of year employee review examples are characterized by a consistent and objective structure applied to each of your employees.
Back up your claims with examples and data: Backing up your claims with examples and data will help make the review less subjective, and increase buy-in from your team members.
Align on your expectations for employees: Aligning on expectations for your employees will help ensure that everyone is on the same page and working towards the same goals, and that they ladder up to the main organizational goals.
Leverage technology to standardize your performance review process: Using technology, such as AI tools for performance management, will help standardize your performance review process and make it more efficient. It will also centralize the data collected and help use it strategically moving forward.
Recognize and celebrate achievements: In addition to offering constructive feedback, take the time to recognize your employees’ achievements. This will help boost morale and motivation.
Clearly identify areas for improvement: Identify areas where your employees can improve and provide them with the necessary resources to do so. Don’t be vague—effective end of year employee review examples provide clear-cut, actionable feedback for employees to build on.
Provide training opportunities: An end of year review is a great time to remind employees about training available, and to brainstorm new growth tactics your team can take advantage of.
Encourage career growth: Help your employees to grow and develop their skills with training available to them. This will help them become more valuable to your organization down the road, and offer them engagement opportunities immediately.
Focus on the future: Use the end of year review as an opportunity to plan for the future. Set goals and objectives for the coming year in addition to looking back on their previous contributions.
Encourage teamwork: Encourage your employees to work together as a team. Think about how each individual is working together and make specific recommendations that help develop more effective collaboration.
Be consistent across your end of year reviews: Be consistent in your approach to performance reviews. This will help ensure that all employees are treated fairly, and the data you gather along with the goals you set are accurate and actionable.
Provide the support your employees need to succeed: Because these reviews act as a two-way exchange, it’s a great time to ask your team members what you can do to provide the support they need. This can include resources, training, and mentoring.
Be flexible when possible: While the core evaluation needs to be rigid, structured, and consistent, the approach you take with each individual can be tailored. Different employees may have different needs and require different approaches, and respond to a year end review differently. Take the individual into account when you conduct these reviews.
Encourage communication: Encourage open communication between you and your employees. This will help build trust and improve performance, as well as help fix problems as soon as they arise rather than go unaddressed.
Set realistic goals: Set goals that are challenging but achievable. Being able to actually meet goals is a major part of keeping employees engaged. Your employees hitting their targets also offers opportunities for recognition in the coming year.
Seek employee feedback about the review process: Actively seek feedback from your employees about the review process. This not only makes them feel valued but also provides insights into how to improve the process for the next year.
Address personal development: Discuss personal development goals with each employee. This can include both short-term goals for the next year and long-term career aspirations. Aligning personal development with organizational goals develops a sense of purpose.
Encourage peer feedback: Incorporate 360-degree feedback by encouraging employees to seek input from their peers. This holistic approach provides a more comprehensive view of your employee’s performance.
Highlight leadership skills: Acknowledge and discuss leadership qualities you see in your team members. For employees in leadership roles, emphasize the importance of effective leadership in driving team success, and take a look at opportunities where their leadership skills can provide additional value.
Discuss work-life balance: Ask your employees about work-life balance during the review. Understand the challenges employees might be facing and explore ways you can support a healthier work-life balance.
Recognize and celebrate adaptability: One area of assessment to put emphasis on is your employee’s adaptability to change. In a dynamic work environment, the ability to adapt is an incredibly valuable skill. Recognize instances where employees embrace change positively.
Promote inclusivity: Ensure that the review process is inclusive. Discuss diversity and inclusion efforts, and how you and your team are contributing to an inclusive workplace culture.
Plan for continuous check-ins: Emphasize that the end-of-year review is not a one-time event but part of an ongoing dialogue. Establish a plan for regular check-ins throughout the year, or discuss ways to update your existing structure if need be.
Prioritize the well-being of your team members: Show genuine concern for employees’ well-being. Inquire about their physical and mental health, and discuss ways the organization can support their overall well-being.

End of Year Employee Review Examples

There’s a lot to think about when conducting reviews, so we’ve rounded up 24 end of year employee review examples to help you draw inspiration from and incorporate into your next review cycle.

Peer Performance End of Year Employee Review Examples

Peer performance reviews offer an opportunity for employees and their managers to get a better sense of how they work within a team, and bring a well-rounded perspective. These 8 end of year employee review examples illustrate both praise and constructive feedback to help peers improve their performance.

Tyler is a great team player and always willing to help out. He’s been essential in helping us meet our goals and hit our deadlines. Tyler always has a positive attitude and is willing to go the extra mile to successfully meet our objectives.
Nitesh is a creative problem solver and always comes up with innovative solutions. He’s been able to think outside the box and come up with solutions that have helped the team overcome challenges. Nitesh’s creativity has been super helpful for overcoming some challenging obstacles!
Xandria is an awesome communicator and always keeps the team up to date. She’s been able to effectively communicate project updates, timelines, and expectations to the team. Xandria has helped us stay on track and work more efficiently.
Ameed is very organized and always meets deadlines. He has been able to manage his time and prioritize tasks correctly. Sometimes, I wish Ameed would be a bit more of a team player and let the rest of us know what he was working on.
Erica is a great listener and always takes feedback constructively. After we talked about how her work could be improved, she took steps to use the feedback, and it shows in the quality of her work. Erica is always willing to listen and learn and has been a great team member to work with.
Amrita is a really hard worker, and her dedication is admirable. However, I find her tone to be a little unfriendly and she can sometimes be too-easily frustrated. I think working on communication would be a worthwhile goal for Amrita in the coming year.
Raj is great at problem solving and always shares interesting ideas. His ability to think creatively has been a major help in overcoming some creative obstacles this year, helping us hit our targets on several projects. Raj’s inventive thinking is a key to success on our team.
Helen is a great independent worker, and a definite self-starter. That said, I wish she would collaborate a little better, as it can be hard to work together on larger projects, or share workload when it becomes necessary.

Self-Performance End of Year Employee Review Examples

Self-performance reviews are a great opportunity for employees to advocate for themselves and bring attention to their contributions and accomplishments. These 8 end of year employee review examples illustrate the balance between self-promotion and accountability.

I have been able to meet all of my goals for the year and have exceeded expectations in some areas. I have been able to effectively manage my time and prioritize tasks to ensure that all deadlines assigned to me are met. I have been able to work collaboratively with my team to achieve our goals.
I have been able to improve my communication skills and have been able to work more effectively with my team. Owing to feedback I received, I worked to change the way I spoke with my team members, and I have been able to build stronger relationships as a result.
Over the last year I have been able to take on more responsibility and have been able to manage my time more effectively. I have been able to effectively prioritize tasks and ensure that all deadlines are met. I have been able to take on additional responsibilities and deliver high-quality work, despite the increase in workload.
Leveraging the training opportunities my manager suggested, I have been able to develop new skills and have been able to contribute more to the team. I have been able to take on new challenges and have been able to learn from my experiences. I have been able to effectively apply the skills I learned to my work.
I have been able to work more collaboratively with my team and have been able to build stronger relationships. I have been able to effectively communicate with my colleagues and have been able to work more effectively as a team. I have been able to contribute to a positive team culture.
One area I need to focus on is my organizational skills. I have found it difficult to track my tasks, and this has resulted in missed deadlines and some constructive feedback from my colleagues. I want to develop better organizational habits to avoid this moving forward.
I have been able to improve my problem-solving skills and have been able to come up with more creative solutions. I have been able to think outside the box and come up with solutions that have helped the team overcome challenges. I have been able to effectively apply my problem-solving skills to my work this year.
I am proud of learning from my mistakes and have been able to use those lessons to improve my performance this year. I have been able to effectively incorporate feedback into my work and have been able to improve my skills as a result. I look forward to carrying these lessons forward into next year.

End of Year Performance Review Examples for Managers

Managers play an integral role in employee performance, and help hold employees accountable while motivating them to grow. These 8 end of year employee review examples illustrate how to champion employees while offering constructive criticism to propel improvement.

Sully has been an exceptional leader this year, providing guidance, mentorship, and support to his team. He has been able to effectively communicate expectations and goals, resulting in a highly motivated and productive team.
Bonnie has been able to effectively manage her workload, ensuring that most deadlines are met and that her projects are proceeding efficiently. She has been able to identify areas for self improvement and is leveraging the necessary resources for professional growth.
Fares has been able to effectively communicate with his team members, providing regular feedback and guidance. He has been able to build strong relationships with his team members, resulting in a positive team culture.
Michael has not been able to effectively manage his workload, sometimes not completing tasks and missing deadlines. He has been receptive to feedback and intends to take steps to manage his time more effectively.
Diana has been able to effectively lead projects, providing guidance and support to those she works with. She has been able to identify areas for improvement in both herself and her team, and has been able to effectively communicate expectations and goals.
Cassandra needs to work on providing feedback to her team, some of whom haven’t been offered the guidance they need to succeed in their roles. She has been able to identify areas for improvement and has created an action plan to improve her communication.
Vishal has shown exceptional growth over the last year. After receiving feedback about a need for improvement in collaboration, Vishal has been able to build strong relationships with his team members, contributing to a positive team culture. His growing communication skills have helped the team stay on track and work more efficiently.
Tessa has been able to effectively manage her workload, meeting all her deadlines and working efficiently. She has been able to take on additional responsibilities and has been able to deliver high-quality work. Her dedication and work ethic have been great assets to the team.

Unlock Employee Potential With Standardized Performance Reviews

Omni’s customizable performance review feature allows managers to design work review templates to apply to various employee performance assessments, track employee submissions, and derive critical insights to drive business decisions all in one centralized platform.

A well structured end of year review cultivates a sense of ownership and accountability among your employees, and these end of year employee review examples are sure to help you navigate the process.

As they actively participate in reflecting on their performance, strengths, and areas for improvement, they become more invested in their professional journey. This engagement not only fuels individual progress but also contributes to a more vibrant and dynamic organizational culture.

By embracing continuous improvement for your next work review and referring to the end of year employee review examples and tips provided above, your organization can empower your employees to proactively shape their growth and development. With well-structured review strategies, your employees can confidently navigate the process, unlocking their full potential and driving both personal and organizational achievements.

Performance reviews don’t have to be a dreaded task, with the right framework, guidance, and end of year employee review examples the exercise can become a useful tool in self-reflection and professional development.

For more resources to improve your review cycle,

download our free performance review kit!

Join the 83% of Omni customers who have unlocked new, actionable insights after using our performance management module, and book a free demo with our team today.

Payroll is one of the most important business functions. Did you know more than 39% of Gen Z’s would never tolerate paycheck errors? It is pivotal for your organization to have an accurate, up-to-date payroll provider. Hence, switching payroll companies can be a delicate but critical move.

We get it. Switching payroll providers feels overwhelming as it requires careful planning, thorough review, and flawless execution. However, payroll migration can actually encourage growth, and save you time and money in the process. In this article, we provide a comprehensive guide on switching payroll providers complete with an easy-to-use switching payroll companies checklist to help guide you in the process.

What Is Payroll Migration?

Payroll migration is the process of transferring payroll operations from one provider to another. For instance, switching from a manual to an automated payroll system, or changing from one payroll company to another, are all examples of payroll migration.

Common Reasons for Switching Payroll Providers

If you are unsure whether switching payroll providers is the right move, here are some common reasons why companies do it:

Outdated technology: As technology advances, you need a payroll solution that adapts and grows with it. Many payroll providers now offer real-time reporting, automated processing, self-service portals, HR system integrations, data storage security, encryption, and regular audits. If your existing payroll solution does not provide these solutions, it might be time to consider the switch.
Payroll errors: Are you constantly finding mistakes on tax forms, inaccurate employee hour tracking, overtime errors, data duplication, payroll discrepancies, and outdated tax rates? These errors could cost you tax penalties and your brand reputation, which necessitates switching payroll providers.
Changing needs: Perhaps your organization’s payroll needs have changed, and your payroll solutions are not able to serve them. You might be expanding teams, opening new locations, and developing complex compensation structures such as performance based pay. Switching payroll providers means you can find more scalable solutions.
Integration complications: Does your current payroll solution support seamless integration with your current accounting, HR, or non-wage systems? If not, finding one that supports them and saving the hidden costs of running multiple systems could be the way to go.

Learn more

Budget misalignments: As your company structure shifts, it could be that your budget for payroll solutions have changed and would prefer a more complex or simplified solution. Switching payroll providers enables you to find a quote that aligns with your budget and business needs.

Globalized payroll: Companies that expand their operations outside their local borders require payroll systems that support multiple currencies, support for localized payroll and employment laws, and automated tax deductions and calculations. If your current provider does not support the currencies you need for your globalized team, it may be time to switch to a provider who can offer these services.

As the process of switching payroll providers can be complex, it is important to anticipate any potential challenges and address them proactively. Keep an eye out for the following challenges, and utilize our switching payroll providers checklist to simplify the process.

Varying payroll cycles: If your organization does not have a single pay frequency (such as bi-weekly or monthly payments), you will need a payroll solution that can manage the payments simultaneously.

No non-wage integrations: Other than salaries, your payroll solution should absorb other non-wage information such as employee retirement plans accurately.

Communication conflicts: Establish clear and effective communications between the payroll provider and your HR team to avoid unwanted misunderstandings and errors.

Software compatibility: Opt for payroll providers that are compatible with your existing company software. Also, consider if they provide new access, features, and updates that will continue to work with the software in the future.

The Best Time for Switching Payroll Providers

Switching payroll providers can be done any time. However, selecting the best time for your company ensures that your payroll processes continue to run smoothly during and after the switch.

We recommend timing the payroll migration so that your new payroll provider starts the new calendar year with you. In other words, make the switch at the end of the year. This way, the payroll company can enter the employee wages in real-time. There is no need to catch up on the previous year’s data, called “historical payroll data,” which is needed for tax filing. Without unnecessary data matching, you can save time, simplify financial records, and facilitate quarterly and year-end tax filing to the government on time.

This attention to timing will come in handy when you are collecting data for the new payroll provider as required in the switching payroll companies checklist below.

Switching Payroll Providers Mid-Year

If you need it done before the year end, switching payroll providers between quarters is the next best option. This involves the collection of historic employee data; however, it is more straightforward than migrating during a single quarter. It keeps tax filing manageable, and your accountant will find it easier to handle.

Conversely, switching payroll providers mid-year or mid-quarter can be hectic. Your tax accountant will need to pull information from both new and old payroll providers to complete the required quarterly tax forms and meet the IRS or state government deadlines.

What happens if you need it done before the new quarter? If that is the case, your best bet would be to find an excellent payroll provider with technology that offers highly customizable support and facilitates the transfer of historical employee and payroll data.

Switching Payroll Companies Checklist

With that said, there are a few steps you should be sure to check off when switching payroll companies. This switching payroll companies checklist gives you a step-by-step guide to managing your payroll migration.

The first item on our switching payroll companies checklist is picking your new payroll provider.

Here, identify your new payroll provider needs. Which paperwork should fall under their responsibility? Which customization features are you after?

Look for reputable payroll providers with access to the services you need. If you are unsure, try searching for payroll providers with demos or reach out to their references for further information.

Once you have considered your needs and options, narrow them down to one or two potential payroll providers, and request a proposal. Get all the necessary information you need to make an informed decision.

2. Canceling your current payroll account

With the new payroll providers options in mind, the next step on our switching payroll companies checklist is checking your current contract, and looking for cancellation terms and periods. If you are good to go, let your current payroll provider know that you are canceling your account with them and migrating to a new service provider.

3. Preparing information and documents needed by your new payroll provider

The third step of our switching payroll companies checklist is to prepare the relevant information and documents for your new payroll provider. Some of the common information requested:

Organization name, business type, and address
Employee information to set up profiles on your new payroll software
Payroll records, such as employee information, payroll tax returns, and payroll register reports

4. Notify relevant parties

Next up on the switching payroll companies checklist, inform relevant employees and key stakeholders on the switch. Mention when this change will come into effect and share potential results, risks, and advantages of this migration to ensure mutual understanding and avoid potential conflicts. If needed, provide relevant training for stakeholders to ensure that the team is ready for the transition.

You will find many service providers needing up to 14 days to adjust and run the payroll system effectively after the switch.

5. Setting up your new account

The next step in our switching payroll companies checklist is to set up your new payroll account and system. After your new payroll provider has taken the necessary information and documents from your old provider, you can safely close your old account and remove the old company’s access.

Double-check that the data migration is error-free, and go live with your new payroll solution.

But that’s not all, the final step of our switching payroll companies checklist is to go over the payroll journal carefully the first time you run it to catch and fix any errors. Also, familiarize yourself with the new contract terms to avoid unwanted fees and draw a clear line between your duties and the payroll provider’s duties.

Benefits of Switching to Omni

Switching payroll companies can appear overwhelming but with the right information such as our switching payroll providers checklist, the benefits it provides may make it worthwhile.

Affordable, functional, and suitable for modern growing businesses— Omni is the payroll provider that your business can rely on. Our comprehensive payroll solution is specifically crafted to meet the unique requirements of your business, regardless of your geographical location. With product features like local currency support, automated tax calculations, and instant payroll reports, HR teams can simplify their payroll processes while ensuring adherence to regulatory standards.

Omni’s suite of features makes the requirements for running a compliant and efficient payroll system easy. With secure and centralized employee records, HR teams can swiftly access employment contracts and essential documents that support payroll practices.

Our time and attendance features empower teams to automate data and produce detailed reports in minutes, making payroll calculations instantaneous and accurate. With payroll solutions that support local currencies and payment schedules, Omni offers an entire suite of solutions to make your payroll system seamless.

If you’re ready to take your payroll management to the next level, book a demo with us today. We’ll walk you through the platform’s features and demonstrate how Omni can transform your payroll processing, saving you time, reducing administrative burden, and enhancing overall efficiency for your team.

What are HR Tools?

Juggling tasks from talent acquisition to performance management is probably not your favorite circus trick to pull off. And while people are undoubtedly at the heart of HR, there’s an often underappreciated aspect of successful people managers—the HR tools they utilize to get the job done. HR professionals today are turning to a diverse array of software and technologies to simplify their workload, ensuring they not only survive but thrive in the dynamic world of HR.

These tools can offer the keys to mastering multitasking, managing data, ensuring compliance, and unleashing a more strategic, data-driven approach. As the role of Human Resources evolves, so does the arsenal of tools at its disposal—tools savvy HR professionals are more frequently leveraging. They not only tackle routine tasks but also free up valuable time for you and your team to dive into the strategic initiatives that truly move the organizational needle.

HR Tools in 2024

Gone are the days when HR tools were synonymous with Excel sheets and manual payslip templates. While these tried and true tools still have their place (especially in smaller teams or budget-conscious HR departments) the landscape of HR tools has undergone a remarkable transformation.

In the contemporary HR sphere, tools are no longer mere digital paperwork assistants. They’ve evolved into intelligent companions, leveraging the power of artificial intelligence (AI) and automated workflows. The modern HR toolkit is a bit like having a highly efficient and tirelessly diligent team member who not only manages routine administrative tasks but also analyzes data, predicts trends, and streamlines complex HR processes.

From applicant tracking systems (ATS) that streamline recruitment to performance management tools that provide real-time insights, the arsenal of HR tools in 2024 is more diverse and sophisticated than ever. These tools aren’t just about managing HR tasks—they’re about transforming your HR strategy into a strategic powerhouse, unlocking new possibilities for efficiency, compliance, and employee engagement.

Why Growing Teams Need HR Tools

The term “growth” means a lot more than just a larger headcount. It’s about adapting, connecting, and engaging in a way that keeps both the organization and its people thriving. For growing teams, the need for effective HR tools goes beyond just convenience—it’s a strategic imperative.

Agility alongside expansion

As teams grow, so do the administrative tasks that HR professionals need to manage. This includes processing more timesheets, assessing a larger influx of performance data, and managing a growing number of employee records. Manual methods that might have been “good enough” for a smaller team become cumbersome and prone to errors.

The right suite of HR tools solves for this—by automating recruitment workflows, streamlining onboarding processes, and managing employee records, these tools ensure that the HR department keeps pace with the ever-changing needs of a growing organization. Tech speeds up processes, makes managing a large amount of admin and data easier, and reduces errors, freeing up HR staff to focus on more strategic initiatives.

Fostering connections within your team

With growth comes the challenge of maintaining a sense of connection among team members. HR tools, especially those facilitating internal communication and collaboration, play a crucial role in maintaining and building culture across organizations. From employee engagement platforms that foster a sense of community to tools that enable seamless communication and feedback among teammates and managers, these HR solutions contribute to a cohesive and connected team culture.

Elevating employee engagement

Engaged employees are the backbone of a thriving organization. HR tools provide a platform that measures and actively improves employee engagement. From recognition platforms that celebrate achievements to performance management tools that promote continuous feedback, these tools are designed to keep your workforce motivated, aligned with company goals, and invested in their professional growth.

Actionable insights from real-time data

When working with people, it’s not always easy to make calculated decisions that are backed by numbers. Yet decision making in HR, whether it’s performance assessments or team structures, need to happen in a way that is strategically aligned with a business’s core initiatives. In order for these decisions to be well-informed, HR professionals need to be informed by real-time, actionable data. HR tools equipped with analytics and reporting functionalities provide key insights that allow HR teams to quantify critical functions such as employee engagement, time to productivity, and cost per hire. Real-time data further powers HR allowing for quick pivots and agile decision making that keeps organizations productive and proactive in their People management efforts. Whether it’s understanding workforce trends, identifying areas for improvement, or predicting future talent needs, these tools empower your HR team to make strategic decisions without second guessing.

Ensuring compliance with regulations

As organizations expand their teams, compliance efforts require closer management. With more employees to manage comes multiple expiration dates, working visas, training requirements and more, making tracking and adhering to changing regulations a challenge. HR tools reduce the burden on People teams by securely housing employee data and flagging expiration dates, tracking and following up on training schedules and requirements, and ensuring compliance across tax and payroll functions,

With growth comes increased scrutiny on compliance with labor laws and regulations, helping your HR team stay ahead of compliance challenges.

Now that we’ve taken a look at how HR tools can help you in a high growth environment, let’s dive into specific examples you should consider adding to your tech stack:

6 HR Tools Growing Teams Need in 2024

Applicant Tracking

When you’re dealing with the fast pace changes of a growing team, an applicant tracking tool, also referred to as an Applicant Tracking System (ATS) can be a game-changer. Streamlined recruitment workflows ensure that HR teams can efficiently manage the entire hiring process. Customizable application processes cater to specific organizational needs, while collaborative hiring tools facilitate effective communication among hiring teams.

Common features

Job Board Integration – allows you to post across various job boards and manage your listings in one centralized place.
Customized Application Forms – post unique application forms to get the information you’re most interested in from your candidates rather than relying on often irrelevant standard application forms.
Resume/CV Filtering – a resume database that is fully searchable with keywords, tags, and filters, and automated filtering to highlight top talent based on criteria set by your HR team.
Anonymous Screening – helps eliminate unconscious bias from the early stages of the recruitment process.
Centralized Candidate Management – a secure database to store applications and manage candidate communication, equipped with automated screening interview questions, interview scheduling, and email correspondence.
Automated Workflows – customized workflows that simplify repetitive tasks during recruitment such as pre-boarding forms, onboarding emails, reference and background checks, interview scheduling and application processing.
Interview Management – calendar integrations that sync up schedules across your interviewing team.
Dashboards and Reporting – track vital metrics like time-to-hire and cost-per-hire.

Benefits

The benefits of an applicant tracking HR tool are substantial:

Reduced recruitment cycle and time-to-hire
Data-driven decision-making
Minimized administrative tasks and costs
Scaled hiring pipeline
Strengthened employer branding
Reduced bias
Access to valuable metrics to refine the hiring process

Leave Management

Leave management tools are a must-have for growing teams that want to efficiently handle employee time-off requests. These tools automate the leave request process, providing real-time visibility into team availability and ensuring compliance with leave policies.

Common features

Automated Leave Requests – streamlined process for employees to request time off, reducing administrative burden on your team.
Real-time Visibility – instant access to team members’ leave schedules to facilitate better project and workload management.
Compliance Tracking – monitoring and ensuring adherence to your company’s leave policies and legal regulations.
Customizable Leave Policies – allows you to create and customize leave policies that align with your company’s values and culture. You can set up different policies for different employee groups, such as full-time, part-time, or contract workers.
Employee Self-Service – your employees can easily request time off, view their leave balances, and track their leave history. This reduces the administrative burden on HR resources and empowers employees to manage their own time off.
Analytics and Reporting – leave management systems provide valuable insights into employee leave patterns, such as the most popular time-off requests and the busiest periods of the year. This data can help you plan for future staffing needs and ensure that you have adequate coverage during peak periods.

Benefits

HR departments leveraging a leave management tool can look forward to:

Reduced administrative burden
Improved transparency and clarity
Better compliance with leave policies
The convenience of employee self-service
Detailed data tracking to help make strategic decisions

Considering all functions of an HR team, performance management has to be among the most impactful. That means the performance management tool you pick should be up to the task, and offer the wide range of features needed for effective performance management.

Common features

Goal Setting and Tracking – facilitates the establishment and monitoring of individual and team goals, allowing teams clear insight into how well they’re progressing towards their goals and addressing performance gaps.
Continuous Feedback Mechanisms – enables regular feedback and coaching sessions to improve employee performance.
Performance Analytics: utilizes data analytics to assess and understand employee performance trends.
360-Degree Feedback: collects feedback from peers, subordinates, and managers for a comprehensive performance assessment.
Skill Matrix: Maps employees’ skills, through built-in tools like the 9-box grid, allowing for targeted development plans.
Customizable Performance Reviews: allows you to create and customize performance reviews that align with your company’s values and culture. These reviews can be tailored to the type of employee and the nature of their contribution.
Employee Self-Service: with employee self-service, your employees can easily view their performance metrics, feedback, and goals. This feature reduces the administrative burden on HR resources and empowers employees to manage their own performance.

Benefits

Performance management tools bring with them a slew of benefits which include:

Enhanced employee development
Data-driven performance evaluations with clear metrics
Alignment with higher-level organizational objectives
Improved employee engagement through continuous feedback
Higher retention of employees who recognize their growth opportunities
Better talent management and team effectiveness

Employee Management

As anyone who’s worked in HR knows, there’s a lot of moving parts to employee management. Staying on top of everything is made far easier and more efficient by leveraging a dedicated employee management tool.

Common Features

Centralized Employee Profiles – maintains a comprehensive database of your employee information in a centralized system.
Document Management – facilitates the secure storage and management of essential HR documents, without fear of paperwork getting lost or accidentally changed.
Employee Self-Service – empowers employees to access and manage their own HR-related information.
Task Management – assigns and tracks tasks related to HR processes and employee responsibilities.
Training and Development Tracking – monitors employee training and development initiatives, ensuring your team’s career growth stays on track.
Customizable Employee Reports – allows you to create and customize employee reports that align with your company’s values and culture. You can set up different reports for different employee groups, such as full-time, part-time, or contract workers.

Benefits

Employee management tools will help with:

Streamlined HR processes with centralized process
Improved data accuracy
Increased efficiency while reducing human error
Consistent compliance with labor regulations and company policies
Improved communication between HR and employees
Increased productivity with employees leveraging self-serve capabilities

OKR & Goal Setting

An OKR (Objectives and Key Results) and goal-setting tool is precisely what teams who want to align their organizational objectives and drive strategic initiatives need to succeed.

Common Features

OKR Framework Implementation – enables the deployment and tracking of Objectives and Key Results throughout the organization.
Goal Alignment – ensures that individual and team goals are aligned with broader organizational objectives.
Progress Tracking – provides a real-time view of goal progress and achievements, making it easy for your team to stay on track.
Collaborative Goal Setting – facilitates team collaboration in setting and refining goals, allowing individuals to see how their personal contribution ladders up to larger goals—a big part of fostering employee engagement.
Feedback Mechanisms – allows for continuous feedback on goal progress, and real-time tweaks to be made to help your team members reach their objectives.
Customizable Goal Templates – helps you to create and customize goal templates that align with your company’s values and culture. You can set up different templates for different employee groups, such as full-time, part-time, or contract workers.

Benefits

Make the most out of your OKRs with a tool that will help with:

Improved goal visibility
Increased accountability and ownership
Streamlined goal setting processes
Consistent strategic alignment across different teams
Better talent management and employee development
Few administrative tasks

Comprehensive HR Software

Whatever name you call it, HRIS, HRMS, or simply HR software, this comprehensive HR tool is the backbone of People operations for growing teams. Encompassing a wide range of HR functionalities, this tool provides centralized data storage, reporting, and analytics. In effect, this is the one HR tool to rule them all—its features encompass all of the other tools mentioned, centralized in one place.

Common Features

Comprehensive HR Functionalities – encompasses a wide array of HR functions, including payroll, benefits administration, attendance tracking, and performance management.
Centralized Data Storage – provides a secure and centralized repository for all employee-related information.
Reporting and Analytics – enables the generation of insightful reports and analytics for informed decision-making.
Employee Self-Service Portal – empowers employees to access and manage their own HR-related information.
Customizability to Fit Unique Needs – adaptable to the specific needs and requirements of the organization—there’s no one-size-fits-all solution, and good HRIS solutions can be tailored to the unique needs of your organization.
Scalability to Accommodate Business Growth – grows alongside your organization, accommodating an expanding workforce.

Benefits

The benefits of HR Software are like all the other tools rolled into one. They include:

Centralized information in one accessible location
Reduced manual effort across all HR functions
Enhanced data accuracy and minimized human error
Improved compliance
Increased productivity with self-service capabilities
Better decision-making with in-depth reporting and analytics
Cost-effective—reduces paperwork and streamlines processes holistically
Streamlined HR management, one central system that syncs information and doesn’t require multiple log-ins or individual updates

Key Features to Look for in HR Tools

Not all HR tools are built equally, and with so many options available, it’s important to know what features to look out for to ensure you’re utilizing the right tool for your team. Let’s examine the key features you should consider when choosing your next HR tool.

Ease of use. Choosing HR tools with an intuitive interface ensures that both HR professionals and employees can easily navigate and utilize the system, reducing the learning curve and promoting widespread adoption.

Quick implementation. Rapid deployment is crucial for growing teams. Opting for HR tools with quick implementation processes allows organizations to swiftly integrate these solutions into their existing workflows, minimizing disruption.

Multi-channel access. Modern work environments are diverse, and HR tools should reflect that. Opt for solutions that offer multi-channel access, allowing users to interact with the system seamlessly through various devices and platforms.

Collection of ready-to-use reports. A comprehensive suite of pre-built reports simplifies data analysis for HR professionals. Look for HR tools that provide a rich collection of ready-to-use reports, aiding in informed decision-making and strategic planning.

Seamless integration with third-party tools. Integration capabilities are necessary for an interconnected workplace. HR tools that seamlessly integrate with other essential business applications such as email and other existing tools enhance overall efficiency and data consistency across your organization.

Employee self-service portal. Empowering employees with self-service functionalities (like accessing payslips or updating personal information) reduces HR’s administrative burden and empowers employees to access their benefits. Opt for tools that offer a user-friendly employee self-service portal.

Customizability to fit unique needs. Every organization has its own set of unique HR requirements. Choosing HR tools that are customizable allows businesses to tailor the system to their specific needs, ensuring a more personalized and efficient HR management experience.

Scalability to accommodate business growth. As businesses expand, HR needs evolve. Selecting scalable HR tools ensures that the chosen system can grow with your organization, adapting to changing requirements and accommodating increased data volume seamlessly.

Future Proof Your People Management with Omni’s All-in-One HR Tool

By embracing technologies such as applicant tracking systems, HRIS, and employee management HR tools, Human Resource professionals can enhance their processes, improve outcomes, and create a competitive advantage for their organizations, enhancing efficiency, accuracy, and employee experience within their organizations.

Modern HR automation tools like Omni free HR teams from administrative cycles by automating the entire end-to-end employee lifecycle—from recruitment and onboarding to employee engagement and payroll—allowing HR to redirect their time to strategic work that drives business growth.

With Omni, you gain access to data-driven insights that empower informed decision-making, as well as seamless integrations that effortlessly connect with your existing employee favored systems, making your entire engagement process more efficient and modern.

Omni scales alongside your team so you can customize and leverage the system to meet your business exactly where you are—as well as where you’re going.

With a full suite of modules to support every aspect of your business, Omni’s platform offers an intuitive and fully customizable platform that integrates with your team’s favorite tools for a seamless and timely adoption.

If you’d like to learn more about how Omni’s all-in-one HR software automates the entire end-to-end employee lifecycle, saving People leaders from administrative tasks and increasing organizational innovation, book a demo with our team!

Whether quarterly or annual, the employee work review offers an opportunity to check in, acknowledge where employees are thriving as well as identify areas for improvement, and drive workplace culture for increased productivity and retention.

By now, you’ve likely read dozens of articles discussing how to conduct a work review, strategies for structuring self-evaluations, and pitfalls to avoid when running performance reviews for your teams. But once you’ve developed and launched your work review program, how can you continuously improve it to ensure you reach optimal engagement and enact lasting results?

According to Gartner, 87% of HR leaders have thought of implementing changes to their performance reviews in 2020. With another Gartner study finding only 41% of employees are showing optimal performance, performance management continues to be a relevant topic for HR teams.

Enhancing your employee work review process translates into higher motivation, engagement, performance, and productivity levels, this much we know. The question then, is how can HR leaders and managers adjust their work review strategies for continuous improvement and growth?

The Importance of a Work Review

The main goal of a work review is to give employees the needed guidance for growth, keep them engaged, and communicate company expectations. A work review is also a chance to make outstanding employees feel seen, help struggling employees find their way, and even help employers with self-evaluation.

After all, you can estimate your impact as a leader through the overall progress of your team. Collectively, these insights can help drive performance levels up, and it’s all just a few tweaks away!

Additional reading:

Best Practices for Conducting a Work Review

There’s many components that go into conducting a work review, and depending on your employee, each format and approach to work review conversations can be impactful in their own way. These best practices can be applied to any and all work review formats, and help add that extra touch to deepen engagement and provide employees the tools they need to reach the top of their performance game.

For consistent performance tracking, your employees can greatly benefit from tangible, clearly measurable targets. Performance review SMART goals help provide achievable and relevant targets for their performance, and offer a road map that will guide them to get there.

Implement a SMART goal framework to accompany your next work review to keep your employees motivated and engaged. This method also helps make preparing for and evaluating employee performance that much easier with clearly defined metrics to measure progress.

Remember, SMART goals should be:

Specific

Performance goals for employees should have clearly defined output expectations.

To help keep your goal specific, try answering these questions:

What do I want to accomplish?
Why is this goal important?
Who is involved?
Which resources or limits are involved?

Example: I want to improve my Excel skills because my role requires me to use Excel regularly.

Measurable

The performance goal should include specific criteria that measure the progress toward the goal.

A measurable goal should answer these questions:

How much?
How many?
How will I know when it is accomplished?
How do I measure progress?

Example: By the time of my next performance review, I should be able to create spreadsheets using complex formulas within a couple of hours. I should also be able to easily and effectively communicate how to create spreadsheets in a way my colleagues can understand and learn from.

Achievable

The outcome of a performance goal should be under the employees’ control, meaning external factors should not play a role in whether a goal is considered successfully achieved or not.

If you can answer these questions, you have an achievable goal:

Do I have the resources and capabilities to achieve the goal?
If not, what am I missing?
Have others done it successfully before?

Example: I can dedicate 2 hours a week to take an Excel course, and one hour a week to watching tutorials to learn new skills.

Relevant

The performance goal should be relevant to the employees’ job responsibilities, lead to their professional development, and be relevant to the short- or long-term goals of the organization.

To determine if your goal is relevant, answer these questions:

Why am I setting this goal now?
Is it aligned with the overall business objectives?

Example: Working with Excel is 30% of my job responsibilities. As I progress at the company, I’ll be required to spend 50% of my time creating spreadsheets in Excel. My ability to proficiently use Excel will allow me to progress in my career.

Time-bound

The performance goal should have a clearly defined timeline, including a starting date and a target date.

Answer these questions to ensure you have a time-bound goal:

Does my goal have a deadline?
What should be achieved half-way through the process?

Example: In 6 months, I will complete a course and be proficient in Excel. I will be able to create a spreadsheet using complex formulas within a couple of hours, instead of the 4 hours it currently takes me.

2. Avoid generalizations

Create a supportive and positive environment by avoiding generalizations and ultimatums. A good way to catch this is by extricating “always,” “never,” and “in general” from your vocabulary.

Generalizations introduce bias into your work review, and cause confusion and ambiguity for employees. Instead, provide clear, concrete examples and facts when providing both positive and negative feedback. Doing so helps ensure objectivity and equips employees with tangible resources to help them continue to improve their performance.

3. Explain the implications

Employees may be zoned in on their work, and it’s your job as a manager to show them the big picture. How do their actions reflect on others? Cause-and-effect points make employees more aware of how their decisions and communication affect the wider company and teams, as well as hones in on their contributions to your company.

4. Make it a two-way street

For a work review to be effective, you want to talk to your employees, not at them. You can do so to follow decorum, but it also supports true learning. Employees may have assumptions, concerns, or counterarguments about your critiques.

Welcoming feedback ensures that they feel valued, empowered, and are truly on board with you (rather than merely going along with what you’re saying). Not to mention, it may bring your attention to a problem with your management style and company policies. Give your employee the floor by asking questions towards the end of your work review, such as:

“Is there anything else you’d like to cover?”
“Do you have any concerns, comments, or questions about the work review?”
“Is there anything I can do to better support you?”

5. Wrap up with positive feedback

Along with allowing employee feedback, words of encouragement end the work review on a positive note. Take a moment to highlight their strengths, improvements, and any positive points that are worthy of recognition.

Avoid false praise, as honest words help employees see how well they’re actually faring. This way, they can make use of opportunities for growth and be realistic about their expectations regarding monetary rewards, salary boosts, or promotions.

6. Prioritize consistency

When you schedule routine work reviews, you can accurately track progress and update your goals to fit your current priorities. Not to mention, you normalize the work review process so that it’s less of an anxiety-inducing event for employees and more of a common procedure.

As for the question of how often, you can hold an employee work review on a biannual or quarterly basis (depending on the nature of your workflow), or add extra work reviews as needed.

Tips for Employees to Write Their Work Review

Self-evaluation grants employees the chance to reflect on their performance and advocate for themselves, but it can also be a difficult task to remain objective and best present your strengths and contributions.

Offer these tips and best practices to your employees to guide them in writing their next work review.

Be specific

Make your statements specific, and provide examples to authenticate them. Walk your manager through the process so that they can see your effort and strategic thinking. Highlight the projects that you’d describe as your best work and the ones that are well aligned with your company goals.

Pro tip: create a running list at the beginning of each year, this can be a simple word document, written in a notebook, or even within your notes app, where you record each project and achievement throughout the year. Set aside time each day or week to reflect on the work you’ve accomplished. When it comes time for your work review, refer to this document to reflect on all that you’ve contributed throughout the year or quarter.

Provide metrics

Use metrics as your reference points to show your manager the measurable progress and tangible results you’ve achieved in your work review. By providing a tangible example of your contribution, you clearly articulate your impact on the organization and its goals.

For example, a social media manager work review is far more impactful in saying, “improved Instagram engagement by 25%, increased account followers by 1,500” than, “the company’s Instagram account is doing much better in terms of engagement.”

Use action words

Action words or action verbs highlight what you do. Action words help convey a clearer and more specific picture of your performance. Instead of using vague or general terms, these words provide concrete examples of your accomplishments, making the feedback more meaningful and actionable. They emphasize the positive actions and results you’ve delivered, making it easier for managers to recognize and appreciate your efforts.

Here are some examples of action words to utilize in your next work review:

Achieved: “Successfully achieved project milestones ahead of schedule.”
Innovated: “Innovated new processes resulting in increased efficiency.”
Collaborated: “Effectively collaborated with cross-functional teams to deliver outstanding results.”
Exceeded: “Consistently exceeded performance targets and expectations.”
Initiated: “Initiated and implemented a cost-saving initiative that resulted in significant savings.”
Demonstrated: “Demonstrated exceptional leadership skills during the team’s challenging project.”
Streamlined: “Streamlined communication processes, reducing response time by 20%.”
Led: “Led the successful implementation of a new customer service strategy.”
Solved: “Proactively solved complex issues, ensuring minimal impact on project timelines.”
Championed: “Championed the adoption of innovative technologies, leading to improved workflow efficiency.”

These action words can be tailored to specific achievements and responsibilities, providing a more vivid and impactful description of your performance during a review.

Adopt a growth mindset

Are you willing to grow and become more valuable to the company? Your work review should reflect that. Overcome the discomfort of discussing shortcomings, and reframe them as opportunities for growth in terms of career development and company-wide improvements.

Also, use solution-oriented speech to illustrate a willingness to grow. That applies to overcoming career obstacles and announcing plans and goals.

Some phrases you can use include the following:

The main takeaway for me is …
An aspect I’d like to dedicate my time to is …
The direction I’d like to take moving forward is …

Conduct More Impactful Work Reviews

A well structured work review cultivates a sense of ownership and accountability among your employees. As they actively participate in reflecting on their performance, strengths, and areas for improvement, they become more invested in their professional journey. This engagement not only fuels individual progress but also contributes to a more vibrant and dynamic organizational culture.

By embracing continuous improvement for your next work review and referring to the examples and tips provided above, your organization can empower your employees to proactively shape their growth and development. With well-structured work review strategies, your employees can confidently navigate the process, unlocking their full potential and driving both personal and organizational achievements. Omni’s customizable performance review feature allows managers to design work review templates to apply to various employee performance assessments, track employee submissions, and derive critical insights to drive business decisions all in one centralized platform.

Performance reviews don’t have to be a dreaded task, with the right framework and guidance, the exercise can become a useful tool in self-reflection and professional development. For more resources to improve your review cycle,

Join the 83% of Omni customers who have unlocked new, actionable insights after using our performance management module, and book a free demo with our team today.

Paid time off, otherwise known as PTO, is a key element of the employee experience. It allows employees to recharge, take breaks, and come back with a refreshed and productive mindset. By allowing your workforce time to attend to their personal needs, you are helping them to stay present and engaged while at work (while helping curb employee burnout). Ultimately, PTO works out to be a win-win for both employees and the organizations that employ them.

The key to any great employee benefit comes down to the ease of access and use. Like most HR functions, a clear, easy-to-use system is required to ensure initiatives run smoothly. Employee leave management does exactly that, facilitating the tracking, administering, and compensating of employee leave, to ensure employees are getting the rest and work-life balance they need, while keeping functions like team collaboration, payroll, and compliance efforts on track.

What Is Employee Leave Management?

Employee leave management involves the processes and policies that govern the requests and administration of employee time-off; a benefit often offered by employers as a part of employee compensation. These processes include reviewing and approving or denying employee time-off requests, communicating and managing employee’s schedules, tracking time off allowances, and administering paid benefits.

Employee leave includes vacation, sick time, family and personal leave, and bereavement, and can be both paid or unpaid, depending on your company’s policies.

To assert the importance of leave for employees, Pew Research Center says, “About six-in-ten workers (62%) say it’s extremely important to them personally to have a job that offers paid time off for vacations, routine doctor’s visits or to deal with minor illnesses, larger than the shares who say the same about having employer-paid health insurance (51%).”

The task of employee leave management falls under the core responsibilities of the HR department, and can be managed manually, electronically or outsourced through a trusted third party.

Why Is It Important to Have a Leave Management System?

When well implemented, a leave management system balances staffing and employee demands on one side and legal and business policy compliance on the other. In that sense, it supports both business and employee success.

Accurate records keeping

Employee leave management includes keeping records of leave that employees take so that they have a clear understanding of how much leave is available to them throughout the year. This need becomes abundantly clear during payroll and offboarding, as providing records and having clear policies prevents disputes over accumulated earned leaves.

A leave management system allows HR, management, and employees a clear view of how much leave is available and how much has been taken, simplifying leave requests and payroll.

Not to mention, tracking enables you to enforce your leave policy justly, cutting down revenue losses. That’s because the existence of records means you won’t pay for absences (non-completed work hours) that are not covered under your company’s leave policy.

Compliance

Depending on the country you are operating in, you may have specific legal requirements to adhere to around employee leave. Some countries require a minimum amount of parental leave, paid or unpaid time off in relation to hours worked, or certain federal holidays observed by companies. Leave management systems allow you to input these unique requirements and ensure your organization adheres to local labor laws.

Labor management

Leave management systems help to organize employee schedules, offering a straight-forward view into who is working and who is taking time off, reducing instances of under-staffing or conflicts across teams that may affect project deadlines, staffing needs, or other team effectiveness considerations.

Reduced administrative workload

An automated leave management system relieves HR teams of the administrative burden that so often accompanies processing leave requests. From processing requests, tracking employee schedules, calculating leave balances, and processing payroll, leave management systems digitize and automate these tasks, reducing the time spent managing leave and eliminating time-consuming administrative work for HR and management.

Challenges of Employee Leave Management

When you establish an employee leave management system, understanding the potential challenges helps you distinguish a good system from a subpar one and improve how your HR department handles this responsibility.

Tracking leave

Although it may look simple enough, keeping track of employee leave can present its challenges. With multiple employee schedules, leave allowances, and types of leave to manage, you’ll need to document their leave types and confirm that they’re compliant as well as have enough balance to cover their leave. It’s easy to mis-calculate, fail to record, and over promise leave that may lead to gaps in workload coverage if you’re not careful.

There’s also the issue of compliance when tracking leaves. You must know which time-off your employees are entitled to and when they’re entitled to them (depending on local and state labor laws and internal policies). Otherwise, your tracked leaves may land you in legal trouble.

Still using manual leave processes?

Try our free employee time off request template!

Administering payroll

Your payroll management system is intertwined with your leave management system. If there are errors, inconsistencies, and miscommunications in your leave management records, they’ll reflect on your payroll processes. This might result in mixups between paid and unpaid leaves and inaccurate compensation.

Ensuring you pay employees for their PTO is necessary, and solidifies their trust in your company. On the other hand, ensuring you don’t accidentally pay them for unpaid leave reduces revenue losses for your business.

Communication

Communicating company policies clearly can be a challenge within leave management. Whether policies are unclear, difficult to find, or poorly communicated, it can cause a fair bit of confusion for all parties. Further, communicating leave across teams is essential for collaboration and clarity within your organization, and failing to do so effectively can result in missed opportunities and tasks falling through the cracks.

Guide to Developing a Leave Management System

Now that you’re aware of the importance and challenges of an employee leave management system, let’s look at the steps you should follow to build a comprehensive and effective leave management strategy.

Familiarize yourself with local laws and regulations

The first and arguably most important step in setting up your leave management system is to understand your local labor laws and government mandated regulations. Research local, state, and federal labor laws in your location and that of your employees to ensure compliance.

There are a wealth of resources available from government websites to blog posts and templates available for HR teams to leverage as tools for remaining compliant and informed.

Omni’s blog offers a variety of localized advice and information such as:

Automated leave management systems are often equipped with the knowledge and modules to help your team navigate compliance laws and regulations, helping to reduce the likelihood of errors that can result in fines or larger legal troubles.

Outline leave policies

To prevent communication challenges, outline your policies clearly. Make them transparent, comprehensive, and balanced between employee needs, business interests, and employee satisfaction. Make clear whether you offer a traditional PTO benefits package or follow an unlimited time-off policy. Your employee leave policy should include:

The holidays your company acknowledges
The available leave types (such as parental leave, sick leave, casual leave, emergency leave, and jury duty)
How to request time-offs
How to handle unused time (whether it’s lost, used, or rolled over)
How leave time is deducted
How time is accrued in your company

Making leave policies widely accessible and clear for your teams empowers employees to utilize their benefits, helps reduce confusion, and brings clarity for both employees and their managers.

We recommend outline your leave policy within your employee handbook, going over this information during employee onboarding, and making the policy easily accessible by storing it in your HR database for quick reference.

Download our free employee handbook template!

Develop a tracking system

You need a system to track employee leave, remaining balances, and the percentage of employees not using their PTO. This system should also track absenteeism and leave-taking patterns to help flag disengaged employees for early intervention.

Tracking employee leave can be done either using manual or automated systems. HR personnel can manually track leave transactions and the net leave balances for all leave types; however, it can be a time-consuming and error-prone process.

Automated systems subtract time from an employee’s leave balance after each approved request. Additionally, such a digital leave management system supports the addition of set PTO amounts every pay period, which keeps the total accurate and updated. They also help establish pre-defined policies for employees living under different jurisdictions.

Tracking helps facilitate clear communication, ensures accurate and timely payroll, and provides valuable analytics to help determine insights around employee engagement.

Streamline Your Leave Management With Omni

Leave management systems offer a practical solution to reducing administrative work and streamlining People management processes.

Omni’s time off management capabilities help managers and HR teams swiftly navigate employee leave management. Omni’s platform allows you to approve leave applications on the go and keep track of who’s in and out of the office with at-a-glance scheduling.

Our employee self-service portal empowers employees to submit their time off requests, which automatically routes to the appropriate manager thanks to customizable approval workflows. With automated calculations, employees and managers can easily view leave balances in real-time, and track how many vacation days they have left without having to go through HR.

Our localized solutions and inter-connected system integrates your leave management efforts with payroll processing, facilitating automatic, accurate calculations and compliance with local regulations for various regions.

Start your free trial today!

Not ready to switch to an automated system? Download our free Employee Time Off Request Form template to help streamline your manual system.

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