Types of Performance & Appraisal Software

There are many different types of performance appraisal software solutions. The following are the main types of performance management systems that are available in the market:

Behavioral checklist system

This type of performance appraisal software focuses on a list of criteria, known as a behavioral checklist, which employees must adhere to in order to become a better, more efficient, and more productive worker for the company. The list of behavioral competencies they should follow will depend on the type of job they have.

This particular approach to performance management and appraisal is ideal as HR professionals will be able to evaluate individual employee performances without the need for comparisons.

Management by objective (MBO) system

Management by objective, also referred to as MBO, is a fairly new approach to performance management and the appraisal process. In this method, the manager and the employee or team agree on key objectives that have to be achieved within a specific timeline. The MBO performance and appraisal system helps to define success and failure during the employee evaluation process in a simple and effective way.

Performance review software

Performance review software streamlines the annual review process for HR management. Not only does this type of software make it easier for users to generate performance reports, conduct employee evaluations, and identify top performers, but it also allows for 360-degree feedback that can help encourage employee retention within the company.

The employee performance review process can often be time-consuming, especially for larger companies. Performance review software can make the whole review cycle easier by helping users set goals for employees that can then be used to make the employee review process a reflective experience.

OKR management software

OKR management systems help users develop employee goals. This not only helps with employee development and engagement, but it also gives users a platform that makes goal-tracking straightforward. Creating a measurable way for employees to track their goals will not only give them motivation, but giving them recognition for their progress will help promote a positive employee experience.

This type of goal management software helps employees create a more structured development plan. It gives employees a platform to create specific goals, create achievable steps as a result, and track their progress along the way.

Talent management system

A talent management system can automate many key workflows. It can help teams manage processes such as recruitment, onboarding, and applicant tracking. This will allow users to find suitable candidates for job opportunities as well as give new employees a positive onboarding experience.

Talent management solutions can help users find potential employees who have developed the right qualifications to fill key job roles should anyone in the company leave. This is done through succession planning, which helps identify high-potential replacements for high-ranking roles in order to prepare for the future.

360-degree feedback system

As previously mentioned, 360-degree feedback is a form of performance appraisal that allows users to conduct a comprehensive performance evaluation of their employees through the information provided by everyone around that particular worker. Which can include people like his or her manager, supervisor, colleagues, and team members.

With this approach, anonymous, real-time feedback will be provided in order to gain more in-depth knowledge about the character traits and competencies of specific employees, which can help with the employee review process. A key feature of the 360-degree appraisal system is that the reviewed worker will also be able to provide their own feedback for consideration, which helps to encourage employee engagement.

Cloud-based software

Many types of performance and appraisal solutions are cloud-based, which makes them easy to set up and scale up or down depending on the size of the business. It still helps users simplify daily processes while also adding an extra layer of security to employee data.

For example, a popular cloud-based HR software is BambooHR. It incorporates all of the key features of a performance management and appraisal system, including employee time tracking, onboarding, employee engagement metrics, and more. This user-friendly HRIS is also available on iOS or Android devices as a mobile app, so users can access the features from anywhere.

How to Choose Performance & Appraisal Software

Performance and appraisal software solutions are utilized by HR teams and managers to help them properly evaluate employees, as well as their achievements against set company objectives, and goals. The solution allows users to accurately identify top performers and talent for rewards and possible promotion.

However, choosing the right performance appraisal software solution can be difficult, as there are many different performance management systems on the market with different key features and capabilities. How can an organization find the right solution to match its needs, specifications, and standards?

First of all, you need to identify what features your company wants from an employee performance management and appraisal solution. Buyers of this type of software generally fall into one of three basic categories, namely cost-conscious buyers, integrated suite buyers, and best-in-class or best-of-breed buyers.

Cost-conscious buyers are companies or organizations that look for basic systems that offer standard features at a reasonable or affordable price. Small businesses and startups with limited funding and a limited number of team members most likely belong in this category.

If you are trying to find performance appraisal software at a lower price, there are many solutions on the market that cater to your specific requirements. For example, inexpensive on-premise systems and a few SaaS platforms, the latter of which will often be available as a monthly or annual subscription service. There is generally no upfront cost, they are easy to set up and upkeep, and many of them even come with free demos so you can test them before you buy.

Integrated suite buyers, on the other hand, prefer integrated software solutions with more features and functionalities. The companies and organizations that belong in this category generally have inconsistent or disjointed human resources processes. This makes an integrated suite much more suitable, enabling them to bring together all the different processes into one cohesive platform.

Best-of-breed or best-in-class buyers are companies that are already utilizing HR software but are seeking a best-in-class performance and appraisal solution that can be integrated with their existing HR management system or used exclusively to track employee development and employee performance reviews.

Benefits of Performance & Appraisal Software

There are several clear benefits that performance appraisal software systems can offer businesses and organizations of any size or industry. One of the main benefits is having the ability to accurately measure employee performance.

Managers will be able to utilize the solution to gather accurate metrics on employees’ performance based on their OKRs in order to reward them accordingly. Managers can also identify the weaker aspects of each individual employee and work with them to turn those weaknesses into employee goals, so they can improve their performance and in turn benefit the organization as a whole.

Communicating goals and objectives may also be achieved effortlessly by utilizing performance appraisal software. You can make use of the system to simplify goal management and create detailed development plans to promote a positive employee experience.

Detailed performance reports make performance management and the employee performance evaluation process easier for everyone involved. This is especially beneficial for large businesses with many team members as it can help streamline the whole process.

It also provides employers and managers with continuous feedback. Users can use customizable templates to create forms that employees can complete. Their answers allow HR managers to see any negative trends and change what isn’t working. In turn, this will create a better work environment and increase employee engagement and retention.

Common Features of Performance & Appraisal Software