Continuous performance management software enables organizations to manage their workforce remotely in an effective manner.
The traditional annual appraisal has been disrupted by continuous performance management; a systematic approach that has been proven to enhance employee engagement, productivity, and motivation. Employees want regular, real-time feedback on their performance, and this requires a significant cultural change at management level. To win today's war for talent, organizations need to be in the vanguard and shift focus from stagnant, one-off annual performance reviews to future-proofed and ongoing performance management practices. The best way to do this is with a continuous performance management software.
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What is Continuous Performance Management?
Continuous performance management is defined as the process of providing ongoing, regular feedback to employees throughout the year. It is a constant and holistic process that aims to replace the traditional performance management model, which is over-reliant on the annual performance review. Continuous performance management incorporates regular goal-setting, frequent check-ins, 1-to-1s, peer feedback and reviews in order to create an environment where teams can perform to their maximum potential.
Continuous Performance Management in numbers
82% of HR leaders say that performance management is a largely unsatisfactory experience
Gartner research has shown that 82% of human resources leaders find performance management is not effective in achieving its primary objective, and only 38% say it keeps pace with the business needs. By 2022, more than 30% of organizations will abandon a one-size-fits all approach to performance management, instead opting for a tailored system that suits the specific needs of the business.
In a weekly feedback system, employees are 2.7X more likely to be engaged and 3.2X more likely to be motivated
Whilst many organization typically assess performance using annual performance appraisals, Gallup research has revealed that giving feedback continuously dramatically improves employee engagement and morale. In fact, according to Gartner organizations that embrace continuous performance management processes achieve a 24% boost in performance, as well as 14% more engagement among employees.
Why Choose PeopleGoal's Continuous Performance Management Software?
The complete CPM solution
At PeopleGoal, we are aware that there is no one-size-fits all solution when it comes to performance management. That is why we have developed a complete CPM solution that is easy to use and highly configurable to the individual and unique needs of your organizaton. Our cloud-based continuous performance management and engagement software allows you to do things your way.
SMART Goals and OKRs
Sound goal-setting methodologies (SMART Goals and OKRs) that can be aligned with team, department, and company objectives, improve overall performance and maximize productivity. Weekly tasks that help employees stay on top of their workload and plan to achieve their goals
Check-ins and 1-on-1s
1-on-1s that facilitate effective coaching for employees and help identify areas for employee development. Regular check-ins that help management monitor progress towards goals, make notes around discussion points and create action plans to encourage growth across the organization.
360 feedback
Real-time performance tracking percentage completion towards goals, defining what is “on track”, ”at risk” or “off track”. Proactively provide, request and track peer feedback that fosters open communication and team collaboration.
Performance Reviews
Monthly, quarterly or bi-annual review process that allows both employees and managers to reflect upon their progress, course correct, and map out together future performance milestones and development initiatives
Streamline and automate everything
PeopleGoal allows you to automate your workflows, reducing the time HR has to spend creating items on the platform. Kick-off processes like performance reviews and check-ins based on default multiple and traditional manager-employee relationships with the click of a button. You can also auto-launch performance review cycles based on your preferred cadence.
The Benefits of Continuous Performance Management
Employee engagement
Continuous performance management provides employees with the tools they need to improve their performance. Goal-management, regular development conversations with direct managers and frequent feedback drives high levels of employee engagement. Employees who receive continuous feedback will feel valued within the organization, and inspired by the opportunity to learn and grow. Organizations with highly engaged teams have a healthier, happier, more productive workplaces which is the key for increasing employee retention rates.
Employee productivity
Withholding feedback until the annual performance review will curb employee growth and development as they will not have the opportunity to improve their performance throughout the year. Delivering feedback immediately after a project, meeting or presentation allows managers to do a better job of coaching their employees, as well as allowing employees to effectively process and apply the advice they are given.
Employees will also have a greater incentive to maximize their productivity, and be much more receptive to the feedback they are given as it is relevant to what they are currently working on. With feedback conversations occurring constantly, negative feedback will not sound as judgmental as was when given as part of an annual review, and will be taken onboard and used to improve performance.
Employee commitment
Conducting regular conversations between managers and employee about performance and development will boost employees' commitment to the organization, as they will be encouraged to actively solve problems with their current performance whilst developing skills for the future. In the meantime, throughout the year, managers should be coaching their employees to work autonomously which will allow them to take pride in both their work and in the organization as a whole and in turn, understand their contribution to the overall company success.
How Performance Management Software can Facilitate an Effective CPM Process
The "common place" for periodic talks to take place
A cutting-edge performance management software can help build a workplace that drives learning, growth and development, as well as improve employee engagement, motivation and commitment. Performance data should not exist in silos but should be integrated into one single system.
Employee performance management software needs to combine the five elements of continuous performance management - goals, check-ins, 1-on-1s, reviews and peer feedback - in one place. This will ensure that employees remain focused and aligned with the key business objectives, and periodic conversations between employees and their managers will have a direct impact employee development and progress towards their goals.
A robust performance management system should also have the capacity to incorporate goals and peer feedback into check-ins and reviews. This will help set the bigger picture and provide well-rounded, data-proofed performance reviews that will remove bias and further improve employee performance.
Ability to have quantitative and qualitative touchpoints
A performance management software should have the capability to bring together both quantitative and qualitative touchpoints to get the most out of your teams. Measurable OKRs and performance ratings can be paired with qualitative feedback from reviews, check-ins and 1-on-1s to provide a complete picture of employee performance. Quantitative data can be used to create complex reports to identify areas of strengths and weakness, whilst qualitative information can be used to build comprehensive action plans to drive improvement in problem areas.
Looking for a robust performance management software that can be completely customized to fit your organization's unique culture and way of working? PeopleGoal has you covered, book a demo with one of our team today.