Keep up to date on news and developments with Talentevo

  • Reason Companies are switching to Performance Management Software 23rd July 2015

    The Reason Companies are switching to Performance Management Software

    What exactly is Performance Management Software?

    Performance Management Software or PMS is, ‘’…a process that provides feedback, accountability, and documentation for performance outcomes. It also helps employees to channel their talents toward organizational goals” (Melany Gallant).

    A necessary shift

    Today, performance appraisals are typically held annually and discuss the fall-backs and successes of an employee. Employees receive positive feedback or criticisms as part of their performance appraisals that at times the employee feels is not justified. When an employee receives criticisms they deem unreasonable this process leads to negativity from the employee who then demonstrates their mood through the way they work. Their work ethic and productivity levels tend to decline. The employee becomes less engaged with their work and tends to focus on the criticisms given to them at their appraisal.

    Take this guy’s work attitude for example, post a typical employee performance appraisal:

    Reason Companies are switching to Performance Management Software

    Reason Companies are switching to Performance Management Software

    In contrast, if the feedback from the appraisal is positive then the employee might in turn work harder and be pleasing to others. Unfortunately, not all employee reviews contain just positive feedback. By shifting over to using a software system to measure and manage employee performance the drawbacks that result from traditional appraisals will become non-existent.

    Key components of PMS

    By utilizing Performance Management Software an employee can have monthly to bi-annual reviews of their progress so that they can address any issues their supervisors have with their work and assuage the problem. A company becomes more transparent with this system because employers state what objectives they need done, by whom, and by when. An employee has access to see what tasks they are assigned and have the ability to update their employer on their project progress.

    Why is the switch to PMS critical?

    1. The work arena continues to change with the times. The next generation of millennials are accustomed to receiving and asking for constant feedback on their performance at work than were their predecessors.
    2. PMS focuses on development and the idea of coaching which is vital in order to engage this new generation of employees and make them feel supported.
    3. Companies can cut attrition rates in terms of differentiating between productive and unproductive employees. Productive employees who feel they aren’t receiving as much pay or recognition for their work as their unproductive co-workers tend to quit and a company is left with only unproductive workers. By being able to differentiate between the two types of employees a company using PMS could vastly improve their company’s productivity.
    4. PMS allows for a company to become transparent which is key to maintaining an open and trusting work environment.


    The future of PMS

    Performance Management Software is for the new age. It’s time to get rid of traditional outdated forms of employee appraisal. The next generation of employees demand more one-on-one coaching and professional development than previous generations. Adopting a software to maintain an online updated employee task creator and constant feedback to track employee progress leaves little room for excessively critical annual employee reviews that could hinder a company’s efficiency. By switching to a transparent system like PMS a company will contribute to Raising the Bar on Performance Management and wind up with a mass amount of benefits compared to if they were to remain with the current system they possess.



    About Nichole Valencia

    Marketing Associate @ Talentevo.

Contact Us Today

Ireland: 01 4433046
United Kingdom: +44 20 71931189
United States: +1 415 9927831
Rest of World: +353 1 4433046