5 Perks of an Online Performance Management System

An online performance management system takes the hassle out of formal performance reviews. That matters because most performance review systems are a hassle. According to SHRM, 95% of managers say they’re dissatisfied with the performance management process. 

The process becomes more complex as organizations increase review frequency and add employees. Not only is it hard to conduct the reviews, but also to document the reviews—a critical part of the process for employee performance management and compliance.

Online performance management systems like PerformYard can help.

What is an Online Performance Management System?

An online performance appraisal system is a digital platform that gives HR leaders, managers, and employees all-the-time access to performance management information. Tools like PerformYard help companies conduct and document performance management meetings while tracking goals and progress. 

Most of these systems exist in the cloud, accessible wherever employees and their managers may be. Remote access has become a major benefit of these systems since the shift to remote work, but there is a range of other benefits that companies and HR leaders gain through the use of an online performance management system.

What Are the Benefits of an Online Performance Management System? 

Traditional performance reviews rely on tedious administrative processes to track, document, and communicate performance review information. HR leaders have to remind managers to fill out reviews. The HR person may have to collect reviews in their email or a cloud storage drive. It's hard to see data from all the reviews in one place, which means it's difficult to gain any insights.

Online performance management systems remove that administrative burden and provide additional benefits. 

1. Promote a more transparent company culture

Online performance management systems allow broad access to information about employee performance—and how it aligns with company performance. This transparency ensures everyone knows how they and their colleagues contribute to company success. More transparent company culture is created through:

Continuous feedback

Though some companies still conduct formal reviews annually, online employee performance management systems allow for continuous feedback throughout the year. Continuous feedback is a best practice contributing to organizational success. Managers, employees, and HR leaders have 24/7/365 access to feedback on employee performance.

Clear goals

Having an in-person performance management conversation is a great idea, but only if you can document the discussion. Leaving it to chance that both manager and employee will recall specifics leads to miscommunication. Online performance management systems track goals to ensure everyone understands what needs to be accomplished.

PerformYard's digital performance management system displays goals on employee dashboards. Every employee and manager can see goal progress throughout the year and use the data as a reference point in meetings.

Frequent feedback

Employees need frequent feedback to perform effectively. Online employee performance appraisal systems provide a convenient, seamless, and accessible way to document that feedback. Some companies default to using email to provide feedback, but that approach fails to tie feedback to the overall review process.

In PerformYard, it's easy to give feedback within the platform. That feedback is stored in the employee's dashboard where it's available to view during the employee's annual or quarterly review.

2. Align individual goals with company goals

In some organizations, employees may work hard but fail to align their work with company goals. That’s a waste of resources—both time and money. Online performance management systems ensure that individual and company goals are aligned. 

Real-time goal setting helps employees work on tasks that support department, division, and organizational performance. Dashboards with progress tracking allow employees and managers to monitor performance and make course adjustments. Reports provide quick visual insights into progress.

Cascading goals

Optimum performance management happens when goals cascade from the top of the organization down to the front lines. 

1. The organization’s strategic objectives drive goal-setting for senior leaders. 
2. Senior leaders create and assign goals to their direct reports, and so on, down through the organization. 

Cascading goals can also be viewed horizontally to quickly visualize and track interdepartmental dependencies. 

Goal progress tracking

Online performance management systems provide a clear line of sight into individual and organizational performance, visible to everyone in the organization. Traditional methods of goal progress tracking are often siloed and not up-to-date. Online tracking provides visibility, real-time reporting, and easy access for all. 

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3. Get manager buy-in on the review process

We admit it; performance review and evaluation are not at the top of most managers’ lists of the things they enjoy most -- nor is it one of their strongest team management skills. In many organizations, there are good reasons for that. Performance management can be burdensome— especially when managers are responsible for multiple employees. 

Online performance management systems reduce the friction of performance management, leading to manager buy-in and enhanced value for all.

Email notifications

Email notifications help keep managers on top of the deliverables and dates associated with managing their staff members and providing regular feedback. PerformYard updates employees and managers with email notifications every time a review is due, as seen below.

Simplicity

Online performance management systems automate the administrative elements of the performance management process. These systems ensure documentation and provide easy access to information when needed.

PerformYard is designed to turn your existing review process into a simple system. The platform doesn't force you into a complex performance review system; it makes it easier to run your existing system. Click here to learn how easy it is to set up PerformYard.

4. Streamline review scheduling

Coordinating the calendars for two people—let alone two dozen—can be challenging. Online performance management systems use automation to take the complexity out of the review scheduling process. No more struggling to run reviews on work anniversaries

Using an online performance management platform like PerformYard relieves the administrative burdens of needing to remember work anniversaries and schedules around them. The platform will always let you know when an employee is ready for their next review.

Track multiple review cycles in one dashboard 

What are performance management systems good for if they don't make your job easier? The more employees you have to track, the more challenging the process can be. Tracking multiple review cycles in one dashboard lets you quickly see which reviews are coming.

5. Birds-eye view of employee performance

Managers often struggle to track performance across teams. 

• Who’s contributing the most? 
• Who’s lagging behind? 
• Who needs course correction? 
• Who needs more kudos? 

An online performance management system gives you a birds-eye view that you can see at any time, wherever you may be. The reports will highlight top performers and reveal which employees need help.

Managers can see historical review data

Having access to historical data can help track employee progress. It can also be a significant aid when a manager is taking on a new employee or taking over another department. With traditional systems managers would need to request and access hard-copy files that may not be complete, thorough, or up-to-date.

Managers can see employee metrics in a report

Employee metrics can help you track individual employee performance. These metrics can include goal completions, sales metrics, or anything else you can dream up. Metrics and reports also give you insights into how employee performance may vary. You can compare employees across teams or compare one department to another.

You’ll have best practices to share with others and see who may need additional training, resources, and support to improve performance. 

PerformYard helps you track and monitor the following metrics in reports:

• Reviews completed
• Employee ratings
• Goals attained
• OKRs
• KPIs
• 360-reviews
• Self-assessments
• Exit interview information
• ...and more.

What Are the Best Online Performance Management Systems? 

When choosing an online performance management system some important criteria stand out: simplicity, flexibility, and the ability to tie into your existing review process are key. 

PerformYard offers this functionality and more. Whether you need a simple solution for annual reviews or a platform that can help you manage more complex performance management needs, PerformYard has the features and flexibility you need.