5 Signs It's Time to Consider Performance Management Software
How do you know when it’s time to upgrade your performance management system?
Growing companies often hit a point at which old processes break down. Even stable companies with little headcount growth may hit a point at which processes become outdated.
Here are 5 signs your company might need performance management software:
- Significant Headcount Growth
- New HR Leadership
- Turnover Rate Creeping Up
- Negative Reviews on Glassdoor
- Company Isn’t Hitting Key Organizational Metrics
If you recognize any of these telltale signs, it’s time to bring in software that can improve your processes and keep your employees engaged.
1. The Company Has Grown Significantly in Headcount
Growing a company comes with challenges.
One of the many challenges is keeping control over your performance review process.
Manually sending out emails isn’t so bad when you have five or ten employees. But, by the time you grow to 20, 40, and more, the task becomes too labor intensive.
Keeping everyone on the same page becomes more difficult too. It’s easy for managers and teams to get sidetracked from the core mission of the company as it grows. If that happens, reviews won’t address the most vital aspects of performance.
Software can streamline the process, whether you have 10 employees, 100 employees, or 1,000 employees. Tools like PerformYard ensure all reviews include some of the same important goals, and it ensures HR can manage the process in addition to their regular workload.
2. New HR Leadership Just Joined the Team
You can rethink your performance management process at any time, but one of the best times to get down to business is when a new person joins the HR team.
What experiences do they have with performance management? What do they think works well, and what do they think doesn’t work? What systems and software have they used in the past?
They may have ideas and software recommendations you have never considered before. These tools can help you create the ideal performance management process for your company.
3. The Company Isn’t Hitting Its Key Organizational Metrics
If your employees aren’t hitting their personal goals, it’s clear that organizational goals aren’t being met either. But, what if your employees are hitting their goals, and yet, organizational goals are still falling by the wayside?
It means your company has an alignment problem. The goals that managers and employees think are important don’t match up with the bigger goals of the company.
Getting to the root of the problem can be hard—unless you have software that’s up to the task.
A software dashboard can display organizational and employee goals side-by-side. When you see them laid out this way, it’s much easier to make sure they are properly aligned.
Employees can access the dashboard as well. That way they know which goals they should be working towards, and exactly how meeting those goals will positively impact the company.
4. The Company’s Turnover Rate Is Creeping Up
Why do employees start looking for another job?
Pay and benefits impact an employee's decision to leave, but so does engagement.
Employees that are highly engaged with their work are 87% less likely to leave.
Plain old boredom has an impact too.
One in every three employees who quit their job does so because of boredom.
So, how do you know if your employees are engaged? If they’re bored? If they don’t think they are being compensated fairly?
You have to have a performance management process that catches these issues so you can address them before an employee decides to leave.
The way to do it is through an intuitive software program.
It shows employees how they can improve so they can move up. It tracks employee satisfaction as a whole so management can address any issues. Finally, software gives employees the floor. They can voice their concerns instead of bottling them up until they start looking for a new job.
5. The Company Has Negative Reviews on Glassdoor
People don’t just use reviews to decide if they should buy a new blender on Amazon.
They are looking at company reviews on Glassdoor before they even apply for a job.
With good reviews, you can attract top talent. With bad reviews…well…you won’t.
There's a bigger issue at play though. Each one-star improvement in a company's score on Glassdoor translates to at least a 1.3-point increase in customer satisfaction.
Negative reviews on Glassdoor affect who applies to work for your company and customer satisfaction. They’re a reflection of an unhappy workforce.
You should pay extra attention to reviews that make it seem like your company offers few opportunities for upward mobility. You should also pay attention to reviews that mention your lack of a strong performance management process. Fixing this issue with an effective performance management program is vital to the success of your business.
The tools to streamline your performance management process.