Once you’ve established your product or service and identified your target audience, building a reliable workforce becomes the next crucial step in launching your office. To keep operations running smoothly, it’s essential to assess your employees’ skills, efficiency, and motivation. This is where employee performance evaluation software becomes indispensable. But just how vital is having a dependable team—and the right tools to evaluate them?
Let’s explore the numbers and see why performance evaluation software is a must-have for all sectors.
A recent HubSpot study came up with an eye-opening figure: US businesses lose a staggering $1.8 billion each year to poor productivity.
Why are Performance Reviews and Feedback Important?
As an employer, tracking employee performance includes their performance at work, time keeping skills, work conduct, etc. Without performance reviews, neither you nor your employee will be clear where they stand vis-a-vis their performance.
However, according to Forbes, only 14% of employees feel motivated after they receive their performance reviews. An Employee Performance Evaluation Software can inject positive reinforcement into your workforce.
The same study (conducted by Gallup Research) reveals that when they receive proper feedback, 85% of the employees take more initiative while those who receive recognition are 69% more likely to strive to do better.
But this is not a one-way street.
Employees must also provide feedback about their employers and the job roles. While the reviewers can get verbal feedback any time they want, the best way is to ask for formal written feedback via a form or review software.
This has multiple benefits.
To make sure of this, companies need either something like a Form or Feedback Software. However, using simple forms to record feedback is very 2010. To get with the times, it is better to use Employee Feedback Software.
What’s an Employee Feedback Software?
To make sure that the working relationship between the employee and the company is smooth, companies need to use an Employee Feedback Software. It helps gather, manage, and analyze employee feedback.
How are they Useful?
Having an Employee Feedback Software will help you with the following:
- What motivates your employees to do their best work
- Identify any issues that keep coming up
- Employee satisfaction to help you increase your retention rate
- Creating a good work environment
- Using gathered data to drive change
Studies claim that Employee Disengagement costs a company dearly. In the US, companies tend to lose between $450 – 550 billion each year. With an Employee Feedback Software, workers will feel heard and much more engaged. A recent Gallup report claims that engaged workers can increase profitability by 21%.
What’s an Employee Performance Evaluation Software?
Each employer needs to know how well their employees are doing their jobs. The best way to do this is via work reviews.
Earlier, Managers and HRs of a company used to sit for a review meeting with the workers individually, where they recorded the answers to compare them.
However, this method is outdated since:
- It is tedious to compare set targets
- Comparing workers might get hard if there is a large number of workers
- Reviews might be biased
To do a review, employers can simply use an Employee Performance Review Software.
What Do They Include?
The following things are necessary:
- Job roles and duties
- Targets set for a period of time
- Additional achievements
- Performance assessment
- Identifies a worker’s strengths and flaws
Earlier, Managers used to record these via online forms. This process has become easier and more user-friendly with Employee Performance Review Software.
How are They Useful?
An Employee Performance Review Software is useful in multiple ways:
- Suggests ways to improve
- Helps plan short term and long term career goals
- Helps adjust ideals
- Identifies gaps in skill and training
- Helps reward good work
- Provides a way to review team structure
- Helps decide rewards as per skills
Are These Truly Better?
While getting an Employee Feedback Software or Performance review software can be expensive, they make the process simpler for all involved.
They have the below edge over older methods:
- Either party can seek feedback any time they want.
- They record real-time data which helps establish the timeline for different goals set and achieved
- Can be used with existing systems
- Create bias-free reports
- Improve employee engagement by reducing repetitive tasks
- Saves time
- Eases the review and feedback process
- Helps manage goals
Having proper appraisal and feedback systems can reduce employee turnover by 14.9%, as stated by Gallup.
However, some people have faced a few issues:
- Less face time with workers
- The software used may not be private and secure
- All software are not user-friendly
- System errors
How to Pick What’s Right for You?
In the age and era of AI, using older methods for work reviews is not going to be enough. Evaluate the following points when you pick the Employee Performance Evaluation Software or Employee Feedback Software.
- Easy to use
- Uses proper evaluation methods
- Scalable
- Data security
- Can be used with your current work platform
- Budget friendly
- Proper customer support is offered
Way Forward
To get with the times and keep up with a demanding work environment, employers need to get help from different evaluation software. In addition, the review process can be made fair and bias-free with the help of Employee Feedback Software and Employee Performance Evaluation Software.
