Performance Management & Appraisal Software

What is performance appraisal software?

Performance appraisal software is used by businesses across Canada to automate employee evaluation and all related operations. Employee performance management software streamlines the process of collecting and reviewing employee performance, sets objectives, and creates individual development plans. It helps managers set annual goals and objectives for their team members, as well as identify top performers and underperformers.

Some performance appraisal software includes 360-degree feedback tools, which allow employees to complete self evaluations and be evaluated by their manager, peers, and direct reports.

Read on to discover the benefits you could bring your organization by deploying performance appraisal software, as well as the core features of performance review software and key considerations to make during the purchasing process.

What are the benefits of performance appraisal software?

Performance appraisal software provides benefits not only to the businesses that deploy them, such as greater efficiency and productivity, but also for employees.

• Improve performance tracking: Unlike a traditional performance review system where managers capture feedback only once or twice a year (which can lead to recency bias), performance appraisal software allows users to gather employee and manager feedback throughout the year. This gives a complete and honest picture of the employee's performance throughout the year and helps managers evaluate them more accurately.
• Boost employee motivation: Performance appraisal system connects managers and employees on a common platform where they can discuss and set individual goals, objectives, and professional development plans. Employees can view their performance and map their productivity against the assigned goals.

What are the typical features of a performance appraisal system?

Given that performance appraisal systems are used in tandem by managers and their employees, these platforms tend to have a range of features that optimize them for a wide-range of usage.

• 360-degree feedback: Enables managers, peers, and direct reports to leave anonymous feedback on employees so that employees can see how others perceive their performance work and quality.
• Ongoing performance tracking: Gather and analyze employee and manager feedback in real-time and map employee productivity against set goals and objectives.
• Objective/goal setting: Allow managers to configure and set goals and objectives for every individual on their team.
• Appraisal history tracking: Track term appraisals, increments, and promotional benefits throughout a job tenure.
• Self-appraisals: Give individuals the tools to evaluate their own performance.

What should be considered when purchasing a performance appraisal system?

Before purchasing a performance appraisal system, organizations should take a few factors into consideration to ensure they are choosing the best performance management software for their operations.

• Integration with other HR systems: If your business is not using a full-fledged human resource management (HRM) system, we recommend choosing performance appraisal software that integrates with other HR applications such as benefits and administration, payroll, attendance, and learning management systems. Integrations will allow the HR department to transfer data between systems.
• Data security: Performance appraisal system deals with highly confidential employee data including personal details, salaries, and benefits. If the software is hosted on the cloud, the vendor should comply with data security standards to safeguard any employee data that is saved on their servers. Businesses should validate vendors' compliance certificates and data security standards before shortlisting software.

What are some relevant performance appraisal software trends?

Performance review tools are subject to industry trends which buyers should be aware of in order to make the right purchasing decision.

• AI will improve the performance review process: Businesses are shifting from traditional employee performance reviews, which are done once or twice a year, to a continuous ongoing process. Despite this, the integrity of the employee feedback process can still be compromised by human error and manager bias. Performance appraisal solutions backed by artificial intelligence (AI) can help businesses eliminate biases to a great extent. An AI-driven system will capture employee performance details on a real-time basis throughout the year. AI can also recommend training and development programs for employees based on their performance history. Software vendors such as Butterfly.ai and Know Your Day have already added artificial intelligence to their performance tracking software.
• Cloud adoption continues to rise: More and more performance appraisal software vendors are taking their products to the cloud. In fact, according to Gartner, cloud adoption increased across all geographies by 26%, which accounted for 51% of all human capital management (HCM) revenue in 2017. This trend primarily benefits small and midsize businesses as they can access HR applications at a low subscription cost and save themselves from having to make heavy infrastructure investments for on-premise tools."