Digital HR movement is sweeping the HR discipline across all industries and all geographies. According to Josh Bersin, organizations are willing to invest in HR tech in the near future. Out of which 67% is planning to buy employee performance management software. Business performance is directly connected to employee performance.

Investing in performance management software is akin to investing in business growth. Modern performance management tools bring capabilities in terms of employee recognition and performance analytics. The positive effect of a PMS includes engaged & motivated employees, increased retention, and visibility on people & performance metrics for top management.

Your organization will benefit from the employee performance management software only if it is the right fit for your work culture and business. Here are the top 6 factors to consider while zero in on a perfect employee performance management software.

#1. On-going performance management with continuous feedback

#2. Unique workflows and feedback forms for different job levels

#3. Support to Matrix hierarchy and Cross-functional manager feedback

#4. Means to express appreciation & recognition instantly

#5. Mobile App for easy access

#1. On-going performance management with continuous feedback

The traditional once-a-year appraisal is not effective for the agile way of working. Employees demand real-time feedback, coaching and instant recognition. They don’t want to wait a year to know their performance standards and area of improvement. The panacea for this is continuous feedback based performance management. Modern performance management software provides continuous feedback features for performance and development.

#2. Unique workflows and feedback forms for different job levels

Employees carry different roles and responsibilities in their work. Their goals, reporting hierarchies vary. It is impossible to follow the same appraisal workflow throughout the organization. For instance, certain roles require two-levels of approvals and some other require three-levels of approval. Performance management software with the capability to manage multiple appraisal process workflows can meet this need. With flexible software such as Synergita, organizations can create multiple appraisal workflows to automate their process.

With varying goals, the feedback form has to be unique for each role. You can’t do a performance review of your scrum manager and accounts executive with the same feedback form. They need customized feedback forms representing their skills, goals and development. Very few software provides these versatile features. If you want to have a meaningful and genuine performance review, this factor is a must-have in your PMS.

#3. Support to Matrix hierarchy and Cross-functional manager feedback

Managing the performance of a linear organizational structure is hard. Managing the performance of a matrix reporting structure is exponentially harder. The primary manager may not be responsible for all the goals assigned to the employee. The employee may work in other projects and his achievements, progress and performance levels are known only to the project managers. The feedback, if given by the primary manager would be more generic and may not show the true picture. In such cases, goals have to be mapped to the respective managers for monitoring the progress. Respective managers provide feedback and rating for the employees during the appraisal. While choosing PMS, check whether the tool is adaptable to the matrix and cross-functional reporting structure.

#4. Means to express appreciation & recognition instantly

Lack of recognition is the primary issue for employee attrition. Employees prefer instant appreciation and recognition from peers and managers for the job well done. PMS with the capability to manage virtual awards, rewards & recognition program helps to motivate and inspire your employees. This type of care and share feature empowers employees to post instant appreciation to their colleagues. It strengthens team bond, nurtures positive work culture and fulfills their recognition needs. 

#5. Mobile App for easy access

The smartphone is an inseparable accessory in the modern world. If you are not on mobile you don’t exist. Continuous performance management can become continuous only if it is accessible anytime, anywhere through the mobile app. The mobile app helps employees update their goals, achievements and progress in real-time. It helps to continuous performance feedback and instant appreciation to your team members. The mobile app makes it easier for employees to access and use the PMS tool.

Make a checklist of the top factors and other specifications you deemed necessary before shop around. Take time to research and compare the product features available in the market.  Find the right performance management software that fits your business model and achieve performance-driven growth.