48% of employees care more about their work when they receive feedback in the workplace, yet only 2% of companies worldwide believe their performance management process delivers high value. This could be because performance management — the strategy organizations use to manage, measure, and improve employee performance — has an administrative problem. Any manager or HR professional will tell you, performance reviews, setting and tracking SMART goals, and all of the other various components that make up performance management are time-consuming, and difficult to stay on top of.
This is why it’s so essential for modern businesses to perfect their performance management system if they hope to keep an engaged workforce. Let’s take a closer look at what you should know, look out for, and do to get the most out of your performance management system.
What is a Performance Management System?
A performance management system is a set of processes that organizations use to measure, manage, and improve the performance of their employees. The system is designed to align employee performance with the goals and objectives of their organization.
Performance management system software is essentially the automation and digitization of a performance management system and serves as the tool to help HR departments and managers streamline the tasks and deliverables required to manage their employees’ performance.
Performance management systems are necessary for companies to engage and nurture their workforce, but if managers and HR are too bogged down to effectively implement these systems, their efforts go to waste.
Performance management software is what ensures that the many intricacies of performance management – from goal setting and tracking to 360 reviews – get accomplished in a personalized and timely manner to promote employee success.
Key Features (and Benefits) of an Effective Performance Management Software
If you’ve spent any time searching for a system to help you manage performance you know just how overwhelming it can be to decide which performance management system is best for your organization.
You want a software that is easy to use and within your budget, but you also want to make sure the system will actually be effective for your management needs. Let’s break down the key features of an effective performance management software to help you find the right management solution.
360 Degree Reviews
Performance reviews are best executed when we have a well-rounded perspective on performance and accomplishments. 360 degree performance reviews – the process of collecting and providing feedback from different points of view on specific skills, values, and competencies – are powerful tools for alignment, development, and course correction.
Your performance management system should not only have a feature that supports 360 reviews but also simplifies the process of gathering holistic feedback from various stakeholders. These features streamline the review process for a growth-oriented, bias-free performance appraisal.
Omni’s performance management feature allows you to track review cycles, distribute customized performance appraisals, and send automated reminders to guide the review process to completion. Ensure no employee goes without a review, and easily track and manage cycles on one easy-to-use dashboard.
Goal Setting and Tracking
Implementing goals consists of both setting and tracking goal progress. Both require their own amount of effort and thoughtfulness, but tracking goals – whether they’re SMART goals or key performance indicators for employees – is often the step that falls by the wayside. Whether that’s due to busy schedules or a lack of understanding of how to adequately measure and track performance review SMART goals, having a system in place to manage the process of goal setting is a must-have in your management toolkit.
An effective performance management system should provide a tailored approach to goal setting and tracking. Omni’s customizable goal tracking templates help managers guide employee performance reviews, track employee submissions, and derive critical insights to drive business decisions all in one centralized platform.
Automated Performance Reviews
Performance reviews are multi-faceted and thus time consuming for managers and HR teams. From assigning, tracking, reminding, summarizing, and sharing feedback with employees, it’s easy for the workload to pile up during review season.
An effective performance management system should allow you to automate the entire performance review process – from implementing customized performance review templates to analyzing and distributing results – without the headache of manually monitoring each review phase.
Omni’s performance management tool takes the administrative burden out of performance reviews so you can spend more time on the strategic planning necessary to drive business outcomes.
Feedback and Communication
Having a strong feedback and communication loop is good management 101. A performance management system should give you the capability to facilitate regular feedback and communication between managers and employees, including everything from ongoing coaching and development to easy visibility into employee attendance. This feature increases employee engagement and breeds a productive and motivated workforce.
Omni’s employee-friendly platform allows employees and managers to view team schedules, access an intuitive notification center, and leave notes, reminders, and feedback on various tasks to streamline communication.
Customization and Flexibility
Each organization and their employees have their own unique set of goals, tasks, and communication styles. As your teams and departments grow and change, your performance management system should grow and change with you. Seek a performance management system that allows you to customize features and one that is flexible enough to adapt to changing requirements and priorities as you grow.
With Omni, you can customize everything from employee records and performance review forms to visibility access and org charts with a few clicks.
Performance Metrics and Analytics
Having easy access to trends in your workforce enables you to identify patterns in performance, allowing you to course correct in real time and keep your business on track. A performance management system should have robust analytics and reporting capabilities, as well as an easy to use interface to collect and review this information to help you make targeted, data-driven decisions.
Omni collects real time employee data and metrics so you can easily create reports to drive business decisions. With customizable fields and fast turnaround time, you can efficiently run multiple reports to tap into the actionable insights that help drive business decisions.
Integration with Other Systems
One of the biggest pain points for HR teams is the lack of cohesion across systems. You might be tracking payroll in a spreadsheet while running your recruitment efforts through a separate ATS. The lack of consistency increases the likelihood of errors and valuable time is lost to data entry. A performance management system that integrates with other systems, such as payroll not only saves time, it ensures consistency and accuracy of data.
Omni is built to seamlessly integrate with your most used applications while replacing your disjointed manual workstreams. Get in touch with our team to learn more about how Omni can fit into your HR practice.
The goal of a performance management system is to make your job easier, not further complicate it. When considering a software, ensure the interface is easy to use and intuitive. This will cut down on implementation time and encourage employees to utilize the system. A good way to determine this is to ask for a demo, and use the system yourself; if you feel confused or lost on how to perform basic tasks, it’s likely not the solution for you.
Security and Privacy
HR is the gatekeeper of sensitive employee data. It’s essential that your performance management system have strong security features, including data encryption and access controls, to ensure that sensitive employee data is protected.
Omni’s control center allows managers to customize exactly what employees can see and change within their own profiles as well as their peers. With encrypted data and password protected features, we ensure all information stays in the right hands.
Enhance Your Performance Management with Omni
Performance management systems should make your job easier and increase productivity across your organization. When chosen thoughtfully, performance management software helps managers establish employee performance standards and supports the entire end-to-end employee lifecycle while reducing the burden of administrative work.
Omni is a user-friendly, secure interface that makes recording and accessing data, managing employee performance, and providing feedback easy and intuitive for all teams. Our modern and adaptable platform is built to seamlessly integrate into your day-to-day employee management tasks.
Book a demo with our team today to experience the ease of Omni for yourself.