Evaluating and Implementing Performance Management Tools

Choosing and rolling out a performance management system is one of the most impactful decisions an HR team can make. Below, we answer the most common questions about evaluating, implementing, and getting the most out of these platforms.

What is performance management software and why does it matter?

In short, performance management tools streamline how organizations handle reviews, feedback, goal-setting, and employee development. Rather than repeat the fundamentals here, we've written a complete guide: What is Performance Management Software? covers definitions, how these systems work, and why they're critical for modern organizations.

The rest of this article focuses on the practical questions: how to evaluate, choose, implement, and get results from your platform.

Who uses performance management tools?

These systems are 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 solution you choose provides flexibility for the HR team and simple experience for employees.

What are the key features to look for in a performance management tool?

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

Vendors should assign a dedicated success manager assigned to your organization to ensure success. 

To see these features in action, explore PerformYard's AI-powered performance management software.

What are the benefits of using a performance management system?

A dedicated performance management platform eliminates the headaches and paper-pushing associated with review processes and saves HR professionals and employees significant time.

When an organization implements a purpose-built system, they're able to focus more energy on feedback and less time on administrative tasks like tracking down forms, emailing questions, and sending reminders.

What are the limitations of some performance management tools?

Some performance management tools 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 your shortlisted vendor before buying.

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

Why do organizations invest in dedicated performance management systems?

Organizations adopt dedicated tools because modern performance strategies (more frequent reviews, 360 feedback, and continuous check-ins) are too complex for spreadsheets or homegrown systems.

As the frequency and sources of feedback increase, manual processes break down. Poor processes ultimately lead to less and worse feedback for employees. A purpose-built solution corrects this and puts the emphasis back on effective feedback.

How should you evaluate performance management solutions?

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 when comparing performance management tools?

What you prioritize will depend on your organization's 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 a performance management system help with employee development?

Yes — a well-implemented performance management system is the foundation for employee development.

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

The right solution creates an environment for continuous, high-quality feedback, helping employees focus on areas that drive real growth.

How do you implement a performance management system?

The first step to implementing a performance management system 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 biggest challenges when rolling out a new performance management system?

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.

See how PerformYard makes performance management easy

Ready to see a solution that's flexible for HR and simple for employees? 

Request a demo and we'll walk you through how PerformYard's AI-powered tools can streamline your entire review process.