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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.
A necessary shift
Today, performance appraisals are typically held annually and discuss the failures and successes of an employee. Employees receive positive feedback or criticisms as part of their performance. Negative appraisals that at times they feel are unjustified. When an employee receives criticisms they deem unreasonable this leads to negativity from the employee who then reveals 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 critical employee performance appraisal:
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 absent.
Key components of PMS
By utilizing Performance Management Software an employee can have monthly, quarterly or bi-annual reviews of their progress so that they can address any issues their supervisors have with their work and mitigate 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?
- The work arena continues to change with the times. The next generation of millennials are more accustomed to receiving and asking for constant feedback on their performance at work than were their predecessors.
- 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.
- 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 retain the employees they need and focus on improving their poor performers.
- 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 wind up with huge benefits compared to remaining with the system time consuming paper based methods they currently use.