What Is Performance Management Software?

Employee performance management software is a solution that helps companies organize, document, and follow-up on employee goals and growth. Moreover, it is a way to both set, track, and determine whether goals have been achieved.

Why Does It Matter?

As a general concept, performance management is important because it is like taking the pulse of each and every employee, as well as the organization at large. When you conduct regular performance reviews, you can understand if employees are succeeding or struggling.

Read our complete guide to staff appraisals by clicking here.

At the same time, it is important to think about this process holistically. Not only whether employees are hitting targets, but if their satisfaction is going up or down as a result, and whether the process of reviewing them is also satisfactory.

Who Should Use Performance Management Software?

At its heart, performance management is an HR task. They are the ones who need to think about how it is developed, who need to be using it, and for what purposes. When it comes to designing the framework, it rests on them.

That said, both HR and leaders have a role to play in actually executing a performance management process. This is why performance management software can often be so crucial, as it allows for a consistent experience for every leader (save for the nuances that come within specific departments or with different functions or team members).

Then, expanding our scope even further, we can think of performance results being used by executive leadership to drive change in the business, in general. This would typically be brought to the table by an empowered HR function, which proper software can facilitate.

How Do You Use Personio For Performance Management?

By using an HR software like Personio, you can develop your own performance management indicators and define target agreements jointly with your employees as part of their performance reviews.

This also includes:

• Using digital notes for recording specific events between reviews.
• Taking targets reached and bonuses and automatically moving them to payroll.

Download our free performance review template by clicking here. 

Can You Define KPIs In Personio?

Personio provides three types of defined indicators for performance management:

• Binary indicators with two defined options, for example, ‘CPD event attended’ – yes or no
• Quantitative indicators, i.e. directly measurable indicators such as sales targets
• Qualitative indicators, i.e. not directly measurable indicators such as employee satisfaction

You are free to define whether and to what extent each KPI affects the bonus calculation for the selected period. You can enter bonuses manually in the Performance section of the employee profile, or have them calculated automatically, based on the extent to which the targets defined and stored in the performance section have been reached.

Can A Performance Management Software Save Time? 

Once you have standardized your performance processes, every subsequent evaluation you host will take far less time. At the same time, you’ll be able to build up a consistent and sustainable library of data to use for reports on employee performance.

This way, your HR team is empowered to understand how employees are developing across the organization. You have all of the data you need on hand, with the reporting to match, to ensure that your employees are developing, succeeding, and sticking around for longer.