7 Features to Look for in Performance Appraisal Tools
The performance appraisal process in an organization can sometimes be unpopular with HR teams, line managers, and employees. Performance appraisals are often both time-consuming and fiddly, comprising a number of different activities that need to be manually completed. However, its potential to contribute positively towards overall business success makes it valuable for the company.
Let’s look at how performance appraisal tools can help make a difference in your organization.
What is the purpose of performance appraisal tools?
A performance appraisal helps employees perform effectively in their role, coaching and motivating them to work enthusiastically and to be dedicated to the company. They also help businesses identify employees who are particularly skilled, and therefore create a plan for them to be nurtured, grown, and advanced within the company.
Performance appraisal tools can help your company fulfill these goals by automating many of the processes that form part of the performance appraisal system. This means line managers and HR teams can spend less time on the manual administration of performance appraisals and instead focus on more value-adding parts of the process, such as coaching, supporting, and training employees.
Popular performance appraisal tools
There are a variety of performance management systems and apps on the market, each offering different strengths and functionalities. Much depends on your organization’s unique situation and circumstances, such as what features you will depend on most, your business size, budget, and culture/style.
1. Kissflow HR Cloud
Kissflow HR Cloud’s powerful performance management module aligns individual employees and teams with business goals and strategies efficiently. It standardizes the performance appraisal process while giving organizations the flexibility to tailor it to their unique needs.
With Kissflow HR Cloud, businesses can:
- Get a 360-degree view of workforce performance
- Promote employee engagement and collaboration
- Align individual goals with the overall HR strategy
- Drive execution with dynamic rule-based workflows
- Spot, reward, and retain top performers
- Reduce employee dissatisfaction and turnover
- Trigger performance improvement plans
Additionally, Kissflow HR Cloud provides actionable insights that help businesses identify the best people across their organisation, highlights critical leadership gaps, and other business-critical insights that prepare the organisation for the future.
Small businesses may be well suited to BambooHR’s performance appraisal system. It’s simplistic performance management system is based on Deloitte’s approach to redesign performance reviews. Although it is a bit more simplistic, it captures and provides enough information and insight while providing some scope for customization such as with the document templates and basic workflows.
While the performance management module offers an array of great features, the only disadvantage is that organizations will have to comply with the builtin timelines for reviews and there isn’t an option to customize them.
3. SAP SuccessFactors
SuccessFactor’s talent suite offers a full coverage of performance management functionalities that give a comprehensive view of an organization’s workforce. Since it provides a complete spectrum of other products, it helps businesses introduce new HR initiatives like linking pay to performance, reward and recognition policy, etc.
It provides an exact report of the performance of an organization’s workforce, from training courses carried out to labor incidents. Mass loading of goals and targets is a bit challenging with Successfactors. There is no option to quickly load goals using an excel file or document upload.
4. Workday HCM
Workday HCM supports the entire performance appraisal cycle, from alignment to review to compensation. With ‘workday’, organizations don’t have to wait until the appraisal time, they can identify the ‘real-time’ value of certain talents and arrive at smart decisions to recognize such employees.
While it offers exclusive features like skills assessments, individual plans, and compensation management, it falls short when it comes to a few critical features like 360-degree assessment and peer reviews.
In contrast, Zoho has an HR system that integrates with a number of its other applications, and could, therefore, be a good choice for larger organizations looking to achieve a good level of consistency across its business operations. It offers an array of features including 360-degree review, custom rating scales, peer appraisals, and more.
On the downside, it is a little complex to set up and lacks a few critical functionalities like individual development plans, skills assessments, and weighted performance ratings. Since the interface is a bit clunky users might need a while to get used to the software and their your way around.
Must-have features you should look for in performance appraisal tools
There are many performance appraisal systems out there to help simplify and streamline your performance appraisal process, but it’s crucial you take time to analyze the features and functionalities offered by each one to make sure they suit your needs.
Here are important features that every performance appraisal tool worth its salt must have:
Every organization irrespective of its size, needs a standard review process to align, assess, reward, and develop their workforce. Tasks like goal setting, ongoing performance tracking, timely one-on-one discussions, and final evaluation form the performance review cycle.
360-degree feedback is the process of providing employees confidential, constructive feedback from people who work with and around them. Participants involved in this process usually include sources like the employee’s manager, peers, direct reportees, customers, and more. During this process, stakeholders fill out an anonymous feedback form that covers a wide range of performance competencies.
3. Rewards and recognitions
To keep employees motivated and engaged, organizations need to celebrate the accomplishments of their employees in a timely way. An interactive performance dashboard will help businesses keep track of all employee milestones at a glance.
4. Performance improvement plans
All teams need an intelligent performance management module that tracks employee performance proactively and triggers a performance improvement plan when an employee’s performance slips beyond a certain level.
5. Process transparency
Only a transparent performance review process will ensure fair reviews, reduce any chance of favoritism or bias, and improve employee engagement.
6. Employee training
Business need the option to trigger specific employee training programs to address and improve the performance of underperforming employees. It is a formal document that highlights recurring performance issues along with objective that an employee needs to achieve.
7. Performance scorecards
Performance scorecards allow businesses to collate and analyze the performance across teams and highlight exceptional performance effectively.
8. Performance insights
An ideal performance management tool needs to offer an accurate, real-time insight into the performance, skills, and development needs of the workforce.
Performance appraisal made simple
With so much choice in the performance appraisal tools market, it can be difficult to know where to begin when getting out there and trying to compile a shortlist of potential providers. Your first step should be to create a clear and decisive needs analysis of the current state of your organization’s performance appraisal system and where opportunities for improvement lie.
Involve a number of different stakeholders in the business in this process to make sure you get a representative overview. Armed with this information, you can target providers that have expertise in the areas you need the most. If you’re looking for a performance management system that can make your performance management process painless, give Kissflow HR Cloud a try.
Sign up for a free demo and see how your performance management process can be easy, engaging, and more meaningful.