Performance management is the process of establishing a shared understanding of what needs to be achieved within an organization, by placing focus on performance improvement through learning and development that work to achieve the overall business strategy of the company. This involves aligning the organizational objectives with those of the individual employee through competency requirements, development plans, and agreed upon measures and skills.
Employee review software allows an organization to holistically integrate a large number of elements that contribute to effective human resource management. It helps the organization as a whole by giving managers a systematic process to achieve the team’s objectives, improve team efficiency, and develop performance capabilities. Managers review and assess both the team and the individual performance to reward and motivate organizational employees.
What are the challenges when rolling out employee review software for small businesses?
Implementing performance management software processes can often involve a big change in the work culture that your team is accustomed to. This shift can be even more stressful for small businesses that employ a smaller workforce. In order to successfully implement performance management, a good deal of dedication is required from upper management, managers and HR. A comprehensive implementation plan is absolutely necessary to avoid completely derailing the process and disrupting employee workflow.
Below are performance management process challenges to address when implementing performance management software:
1. Steep learning curves involved in product adoption
Oftentimes, the new software rollout becomes a painful process due to complex workflows and steeper learning curves that lengthen the employee training cycle time. A software that is simple in nature with the least amount of training needed is often the best choice. This may require changes to your evaluation methodology too.
2. Nailing down job responsibilities
Having a formal appraisal process requires specific job position objectives and responsibilities to be uploaded in the system. This can be a tedious process if we have not defined the roles and clear expectations in the company. A frank conversation with managers and subordinates to list expectations works best. The employee must be an active participant in the process of setting up measurable KPIs.
3. Busting myths that this might somehow reduce the remuneration of employees
Performance management scores are often tied to bonuses and provide a rational platform for management to decide salary/wage increases. However, the end goal of performance appraisals is to improve employee engagement levels, and are not intended to reduce the existing compensation of employees. Doing evaluations around the time when annual increments and bonuses are decided is best avoided. A year round evaluation system that encourages frequent feedback will ensure employees do not connect a single feedback cycle with remuneration.
4. Communicating the long-term benefits of the software to employees
Streamlining the performance management process with the help of technology has both immediate and long-term benefits. It becomes difficult to persuade employees and managers about the long term advantages such as historic data viewing, succession planning, and any upgrades/features the provider will possibly add to the system. Offering rewards for early adoption and making the process all inclusive using 360-degree feedback might help in bringing everybody on board. Mobile app based systems are often adopted quicker as they are fun to use.
5. Insecurity of Biased reviews and irrational feedback
Feedback from some peers and managers may be biased and may include personal differences, therefore administrating the whole program or assigning a moderator is very crucial. Programs with easy accessibility to evaluations, simple reporting and the use of newer techniques like emoticons and variable rating scales work better.
The integration of a new employee review software can be an overwhelming task and requires in depth planning to ensure smooth execution. An effective plan means that your team is well prepared and appropriate expectations have been established. It’s important that you allot enough time for your employees to become comfortable and confident in using the software. Ongoing training with step-by-step guidance should be established on an as-needed basis to ensure as little disruption to workflow as possible.
AssessTEAM is a cloud-based employee performance management software built by entrepreneurs for easy employee evaluation, engagement, mentoring, and productivity reporting in a single suite. We deliver job clarity to your employees, leading to improved productivity and better employee engagement. Our team consists of HR professionals, business owners, programmers, usability experts, and industry analysts. The product is a culmination of years of research, field tests in several countries, and great advice from customers. Schedule a free demo today!