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Recruitment Insider

Top 10 Benefits of Using Performance Management Software

Efficient management of personnel is an ongoing challenge for many organizations around the world. Companies are experiencing shifts in workplace dynamics, globalization of teams, and the continuous need to sustain or improve employee engagement throughout the management process. Performance management software can be a viable solution for managing people across an organization. Implementing performance management tools in the right way allows HR departments and managers to evaluate the work of their people in a more efficient, streamlined, and beneficial manner. Here are the top ten benefits of using performance management software in practice.

Employees are in the Know

Performance management solutions offer a way to give power back to employees in the realm of evaluating their own progress and achievements over time. Through this platform, people within a company know where they stand in relation to their own career development goals, along with how they are helping forward corporate strategies and needs. Performance management software provides a simple yet powerful solution for this ongoing challenge.

Timely Feedback

One way that continuous performance management systems benefit employers is the accurate and timely delivery of feedback. This not only reaches managers in an organization but it also is accessible among employees. Kudos for a job well done can be shared immediately, in real-time, and this feedback becomes part of the performance review framework for each employee.

Opportunity for Career Development

The combination of career development, personal and professional growth, and progression on the job gives employees a feeling of importance in a company. However, this is not always easy for large organizations to offer systematically or equally to its workforce. As a separate technology tool able to integrate with some performance management solutions, career pathing software allows workers to evaluate their skills, create career pathways and scenarios, and understand job competencies. Career pathing capabilities help employers make the most of their talent over time.

Focus on the Future

Performance management has traditionally been viewed as a backward-looking practice. Managers often review the accomplishments of an employee over the course of a year, or more in some cases, but this fails to recognize the potential of personnel for the future. Implementing a sound performance management solution shifts the focus from past successes or failures to future opportunities which ultimately improves morale and engagement among a workforce.

A More Comprehensive View

The most notable advantage of this technology platform is the ability to see a more comprehensive view of an employee’s progress. A recent study by CEB cites more than 90% of HR managers feel strongly that conventional performance management practices fail to paint an accurate picture of an individual or team. A continuous process that involves both the manager and employee, archived feedback, and career development details solves this common problem among organizations and HR departments.

Meaningful Interactions

The traditional performance review process can be stressful for both employees and managers, given the administrative requirements, paperwork, and scheduling that needs to take place for each review. Performance management software streamlines the process from start to finish. This not only eases the time and energy burdens put on HR and management teams, but it also lays the groundwork for more meaningful interactions during an annual review.

Reduced Bias

Because software platforms offer a way to gain a fuller picture of employee progression through real-time feedback and career development goals, managers have a lower likelihood of facing recency bias. This means that the focus is placed on the whole of an employee’s work instead of the most recent events that stick out in a manager’s mind.

Closing the Skills Gap

Add-ons to performance management software also offer the benefit of managing the skills gap among workers. Through integrated career pathing tools, organizations have an opportunity to give employees a way to map out their desired job trajectory actively, while providing management with a clear view of which talent is needed to fill in gaps in the organization overall.

Improve Engagement

The most significant advantage of implementing a performance management solution is the ability to boost employee engagement over time. When workers have a clear idea of what they are doing right, and that the organization stands behind them when it comes to broad career goals, employees feel more attached to the company. This attachment can improve morale across the board while simultaneously increasing engagement in the work being performed. With high employee engagement comes better bottom line results for the organization.

Aligning Corporate Goals

Finally, performance management software gives employers an opportunity to share larger organizational goals with individual employees. Companies can also clearly spell out how employee performance helps meet these initiatives over time. This creates a culture of collaboration within an organization that has the potential to boost morale, engagement, and ultimately performance.


Written by: Linda is the Founder and CEO of TalentGuard, a leading global talent management software company. Inventive and driven, she is known throughout the industry for disrupting HR technology and is the inventor of the first commercially available career pathing software solution designed to optimize employee engagement and retention.

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Featured Columnists at the CEOWORLD Magazine is a team of experts led by Camilla O'Donnell, James Reed, Amarendra Bhushan, and Amanda Millar. The CEOWORLD Magazine is the worlds leading business and technology magazine for CEOs (chief executives) and top-level management professionals.
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