Performance Management Software FAQs

At PerformYard, we believe performance management software is critical for executing a modern performance management strategy.

But what exactly is performance management software, and how does it work? We’ve looked into the most frequently asked questions and compiled a comprehensive set of answers to help you understand everything you need to know about performance management software.

In this article, we'll cover:

What Is Performance Management Software?

Performance management software streamlines the complex processes and workflows associated with employee appraisals, performance check-ins, goal setting, one-on-ones, continuous feedback, development discussions, or any approach for managing feedback and improving employee performance.

Schedule a quick demo to see how PerformYard simplifies performance management. Learn More

The best software eliminates the administrative burden of performance management so employees and managers can focus all their energy on providing high quality feedback.

What Is Performance Management Software Used For?

Performance management software is used to coordinate performance feedback and discussion across an organization.

After HR teams lay out a performance management strategy, they need an effective way to administer their strategy to every employee.

Performance management software can prompt employees with the next activity at the right time, rather than relying on complicated instructions or emails that go unread. 

How Does Performance Management Software Work?

The best performance management software will adapt to your performance management strategy.

The HR team will design a process of reviews, check-ins, goals, feedback, or some combination, then the software will convert that strategy into a set of tasks for every employee to complete. This creates clarity and accountability, along with high participation rates. Ultimately, employees get better and more frequent feedback as a result.

Why Is Performance Management Software Important?

Performance management software is important because the success of a performance management strategy depends on the participation of employees.

When the process is confusing or time-consuming, it is directly taking away from the quality of the feedback employees will both give and receive. “My manager just copies and pastes feedback” and other common complaints about performance appraisals are often the result of managers overwhelmed by bloated, irrelevant, and outdated processes.

What Is the Purpose of Performance Management Software?

The purpose of performance management software is to automate the administrative burden associated with performance review cycles.

When performance management software is used, HR spends less time managing the review process and managers spend less time completing reviews. As reviews are completed, employee data is automatically collected, encrypted and stored for easy access in the future.

Who Uses Performance Management Software?

Performance management software is most commonly implemented and managed by human resources professionals and departments.

HR sets up the performance management software, but every employee in an organization uses it. Because of this, it’s important that the performance management software you choose provides flexibility for the HR team and simple experience for employees.

What Are the Key Features of a Good Performance Management Software?

Good performance management software should be customizable and adaptable to your organization’s needs. Because every employee will be using performance management software to some extent, it also needs to be easy to use.

Performance management software companies should assign a dedicated success manager assigned to your organization to ensure success. 

If you want to learn more about the key features of a good performance management software, check out this article.  

What Are the Benefits of Performance Management Software?

Performance management software gets rid of the headaches and paper-pushing associated with performance review processes and saves HR professionals and employees tons of time.

When an organization implements performance management software, they are able to focus more of their energy on feedback and less of their time on administrative burdens like, finding forms, emailing questions, sending reminders, etc. 

What Are the Limitations of Performance Management Software?

Some performance management software can limit the HR team’s ability to design a performance management process that’s right for their organization. This can look like limited options for cycle timing, question types, integrated goal-setting, sources of feedback and much more.

It’s important to walk through your planned approach with someone at the performance management solution before buying.

At PerformYard we strive to accommodate the widest range of performance management strategies. 

Why Do Organizations Use Performance Management Software?

Organizations use performance management software because it’s necessary to run modern and more complex performance management strategies.

As the frequency and sources of feedback increase, home-grown systems start to break down. Poor processes ultimately lead to less and worse feedback for employees.

High quality performance management software can correct this issue and put the emphasis back on effective feedback.

How Do You Evaluate Performance Management Software?

To evaluate performance management software, you should focus on a few key questions:

  • Can the software accommodate our approach?
  • Will the software be easy for employees to use?
  • Will the software be easy to implement and will we be given support?
  • Do we get ongoing support? 
  • Are there any hidden fees (like limited features, implementation charges, or support charges)?

Check out our article: The Most Important Features to Consider When Selecting Performance Management Software for a deeper dive on each of these elements. 

What Should I Look For in Performance Management Software?

What you look for in performance management software will depend on your performance management strategy.

You should work through your performance management approach in detail with your chosen solution to ensure it can accommodate your process.

Every solution is different: some may prioritize goal-setting functionality, while others focus on project based reviews.

Choose a few options and get a live product demonstration of each one to ensure the software can support your goals.

Can Per­for­mance Man­age­ment Soft­ware Help with Employ­ee Development?

Yes—performance management software is the first step in employee development.

Effective employee development starts with constructive feedback that points an employee’s development efforts in the right direction.

Performance management software can create an environment for continuous high-quality feedback, helping employees focus their efforts in areas that will lead to growth and development.

How Do You Implement Performance Management Software?

The first step to implementing performance management software is to build out your performance management approach in the software. Choose your cycle timing, participants, questions, and more.

Next, register your employees in the new system and provide a quick training to get everybody started.

Finally, announce and launch your first cycle, which will trigger alerts and to-do tasks for all of your participants.

What Are the Challenges Faced in Implementing Performance Management Software?

The most common challenge to implementing performance management software is the very high stakes.

Performance management strategies impact every employee in the organization, and mistakes are costly and public. That’s why it’s so important to have a dedicated support person who can act as your second set of eyes and ensure success in your organization.

Learn More About Performance Management Software

If you’re interested in seeing how performance management software can benefit your organization, request a demo and we’ll show you how PerformYard's #1 rated software offers flexible features for HR and creates a simple employee experience.