Performance management is an ongoing and one of the most significant processes in an organization. Throughout the year, managers and employees engage and communicate to establish goals, and provide constructive feedback. The managers and peers critically review the employees and also collaborate further towards their career progression and organizational output.
What is the significance of Performance Management?
1. Highlights training needs: It helps to identify whether employees need to brush up on a certain skill or set up to speed with new trends for their role. Performance management and regular reviews will help to identify any shortcomings or future training requirements. Furthermore, it helps in finding any areas that employees need to improve and also finds the best-suited tasks for them.
2. Boosts employee morale: With transparent performance reviews and feedback comes self-awareness and clarity. This leads to productive and happier employees through effective communication.
3. Performance Appraisal: In most companies, all employees go through a performance review process to identify star performers. Accordingly, the performance appraisals are decided. This process allows HR professionals to be more transparent and fair in the selection criteria.
4. Define Career Path: It helps in succession and career planning. The employees will be able to lay their career path by accelerating their performance and identifying their key interests.
What is a Performance Management System?
Companies have started to use performance management software that helps them to streamline and calibrate the process. This software enables managers to conduct employee performance reviews, maintain a record of discussion topics, establish employee goals, and facilitate 360-degree feedback.
A Performance Management System lays down clear objectives for employees that help them to understand what is expected of them. It allows managers to reinforce their employees’ individual accountability to meet their goals and evaluate their performance. An efficient PMS has several components such as;
- clear goals and objectives
- regular performance reviews
- transparent communications
- identifying good performance
- learning and development.
The four benefits of implementing a Performance Management System at work
- Provides Clarity: The process helps the team to foster an amicable work environment as team leads and members are in sync concerning deliverables and outcomes. The work culture results in reduced conflicts, increased efficiency, and enhanced performance quality.
- Enhances Efficiency: The performance management system allows HR to calibrate the process and generates reports that enable organizations to select the right employees for specific roles and promotions. They also help identify those who are not performing optimally, so that plans can be made for additional training or performance improvement plans (PIPs) etc.
- Increases Job Satisfaction: As the job expectations and goals are set, the employees will be able to self-review themselves and identify their strengths and weaknesses. This will help them to gain autonomy and take charge of their professional development.
- Decision Making: The process is robust and enables managers and leaders to make objective decisions while reducing biases, nepotism, favoritism, etc. A performance management system provides data based purely on merit and maps them to expected targets and goals. Thereby making the process transparent and objective. This enables objective decision-making.
How can you use Keka’s Performance Management System?
Keka’s performance management system helps managers to track, evaluate, and analyze their employee’s performance. It helps the employees to achieve their goals and understand the review process. Keka has a Continuous Feedback Module which enables us to foster a motivated culture and help managers and team leaders keep their teams engaged and inspired.
Keka PMS gives you accurate insights into your employees based on which you can nurture the teams. At Springworks, we use Keka and leverage the process. There is an integrated feature that helps us in conducting 360-degree feedback where managers, co-managers, and peers can review the performance.
We have a performance management cycle that is designed to be a year-round collaboration between managers and their teams. Through Keka, we administer half-yearly reviews followed by annual reviews. This helps us in planning, coaching, and reviewing job performance. We have calibrated a rating system, where managers rate their team members on their performance. The availability to add comments under the ratings helps the manager to justify the rating and help the employee to upskill his/her performance. At Springworks we have also enabled peer- reviews. This helps us to encourage recognition and surface hidden talent among the employees. The managers and peers receive notifications sent to their inboxes on Keka and Gmail. This helps us to carry out the process with ease.
Performance management and constant feedback are crucial elements in an employee’s journey. Keka helps us to save time by calibrating the process. It helps the employees in succession planning and professional development.