How do you help your business identify the need for a performance management system? To find out, we asked business owners, managers, and HR professionals this very question in order to gain better insight on how to spot the signs that your business is in serious need of implementing a reliable and professional performance management software.
High staff turnover and repeated employee requests for feedback are just some of the signs that indicate your business will benefit greatly from a formal performance management system.
We’ve put together a comprehensive list of the 9 signs that show your business needs a performance management system.
Goals are Confusing and Seldom Achieved on Time
If you find that the goals and targets setup by managers are often missed, it is a clear sign that it is time to implement a performance management software. When your leaders and HR departments do not know or have the metrics they need to meet company targets, you not only run the risk of losing revenue, but ruining the reputation of your business in the process. Performance evaluation software helps solve this issue by clarifying goals and helping managers ensure goals are met on time.
Progress on Goals is Not Tracked
If you are continually asking your team for goal or task statuses, this is a clear sign that your business is in need of a performance management system. How efficiently your business conducts daily activities is greatly reduced when unnecessary meetings must be called just to determine the status of the work being carried out by your team. Not only does workflow efficiency suffer, workplace productivity is affected as well. Performance management software relieves the endless need for tedious meetings by making progress statuses available to team leaders at all times.
You Don’t Know Your Metrics
Performance management software is a must have tool for every business in every industry. Think of it like a hammer – it’s no good to you if you have no idea where you are going to drive the nail.
A few questions you should ask yourself are:
- Are your processes documented?
- Can you define a metrics per role that would serve as KPIs?
- Are role responsibilities aligned between management and employees?
- Do you often get complaints from employees about their remuneration not matching their performance?
- How engaged are your employees towards the organizational vision?
- Are the consequences or rewards for low or high performance clear to your teams?
- How transparent are your review and goal-setting processes?
If you cannot answer these questions, a performance management system could be very beneficial for your business.
Lack of Collaboration and Organization
Without effective coordination of job responsibilities and job performance data being logged, seamless collaboration between managers and their teams is nearly impossible to achieve. Performance management software enables you to build a structured framework within your organization.
A quick introduction simply does not give your employees what they need to excel at their jobs. Organizational expectations must be documented as KPIs with formal training imparted to ensure employees have the right skills to work with other employees in the traditional office environment, across multiple departments, and from remote locations anywhere in the world.
Not many things indicate poor performance management more than repeatedly missed deadlines. With performance management software you can better track your team’s projects and deadlines. As a company leader, it is vital that you monitor turnaround time for each individual project with the ability to compare this data over a period of time. Multiple missed deadlines are a strong indicator that you need to introduce a performance management system to boost individual employee and team performance.
You Don’t Know Your Teams Strengths and Weaknesses
When you don’t know what’s actually working for your team members it is virtually impossible to improve business efficiency. As an organizational leader, you may often find that you are removed from what’s working for your employees and which processes are working in actual business settings.
Performance management software helps business leaders track and sustain workforce trends that work best for each team. You gain the ability to track what employees are doing in real-time and focus attention on the workplace trends that are working to make appropriate suggestions that in turn garner employee support.
Your Employees are Constantly Asking for Performance Reviews
If a pattern of employees asking for feedback emerges, this is a strong sign that you need to implement performance evaluation software. Employees in today’s world appreciate professional development and want guidance on how to improve. While employers often fear that employees will not be receptive to constructive criticism, they often overlook how eager those employees are to receive feedback on their performance. Businesses need a regular review process in place. Employees should never be required to search out their managers to ask for an evaluation. Performance evaluation software gives leaders the ability to deliver employee feedback at regular intervals without a direct connection to remuneration.
Low employee engagement
Another sure sign that your business needs a performance management system is a drop in employee engagement. Employee retention is currently at an all-time low, making employee engagement monitoring more important than ever. If an employee is missing a lot of days from work, or he/she is often giving excuses about work, then you need to understand why and quickly address the issue.
High Employee Turnover
After remuneration the most common reason for people to leave their jobs is confusion about job expectations, employees who receive consistent feedback and are engaged with the organizational vision often have longer rewarding careers in the companies they work for.
If you are experiencing a high employee turnover rate, what is the cause? Not only is losing staff to your competitors a costly issue, it can also ruin your reputation as an employer. High employee turnover is a definite sign that you need performance management software.
There are various reasons for high numbers of resignations, but most often it is due to poor leadership or communication within the organization, a company culture that does not encourage or promote inclusion and diversity, insufficient compensation, or inapt work conditions. When a performance management system is properly executed, you are able to identify the reasons behind poor employee retention and offer solutions that will encourage greater employee satisfaction.
Employee performance management is a vital aspect of business management. Opportunities derived from performance management software often lead to immense improvements in overall team efficiency. Simply knowing who your top performers are and which projects are executed most effectively by your team can lead to wiser decision making. AssessTEAM is a cloud-based employee performance management software that delivers job clarity to your employees, leading to improved productivity and better employee engagement. Get your free demo today!