Comparison: Top Five Performance Appraisal Solutions
Top 5 Robust Performance Appraisal Solutions
Systematic and periodic appraisal is necessary to assess the employee performance and identify the scope for improvement. This will, in turn, help employees grow and develop into bigger contributors to your organization.
The general procedure used to carry out this assessment is as follows:
1. Analyze the performance of the resource based on the goals and targets set for the period under assessment
2. Compare the resource’s compensation to his/her performance
3. Offer guidance in order for the resource to perform better and thus bridge the gap between performance and compensation.
Why are performance appraisals necessary?
- Right Work: Once an employee’s strengths and weaknesses are identified, a manager can assign the most suitable work, thereby making best use of the available resources.
- Promotion: Managers must identify whether an employee is ready to assume a bigger role in the organization. Not only does this motivate the employee to perform better, it also gives him or her a sense of belonging to the organization.
- Compensation based on performance metrics: Employees can be encouraged to constantly outperform themselves by rewarding them proportionately. If effort is matched by monetary reward, it inspires the employee to work towards higher goals and receive due compensation.
- Human Resource Development Training: The organization must identify the areas of training that the employees require, and address this requirement by choosing the appropriate training program for them. Training broadens the skill set of the employees and boosts their productivity.
- Selection Validation: While assessing appraisals, managers obtain a lot of insights into employee psychology. This understanding will come in handy while interviewing and profiling potential employees. By knowing exactly what to look for, managers can have greater success in the selection of candidates.
- Communication: Managers provide feedback to their subordinates on their previous year performance and suggest the areas that need improvement. The subordinates gets an opportunity to share their problems, pain points and feedback on the manager’s leadership. This interaction is a healthy two-way communication that creates an environment of trust between them.
- Motivation: Performance appraisal is a known motivation tool. The feedback mechanism in this process will definitely encourage merit-based compensation and therefore result in increased efficiency of the uplifted employee.
- Inputs for Succession Plans: Companies draw valuable inputs from the Performance Assessment System for charting their Succession Plans for each position within the organization.
The assessment of performance appraisal is not all about the accuracy of the measurement. Hence, other factors must be taken into consideration such as:
- What influences the quality of performance appraisal data?
- How do the employees view the appraisal process?
- How do we use the appraisal process to motivate and develop staff?
Recognizing the scope for improvement in an employee is imperative in the field of HRD. Talent when nurtured produces better output. Software for HRD is aplenty. Mature performance review solutions are available that adapt easily to current business requirements.
Tracking, managing, and reviewing employee performance with the use of a software will help most organization maximize productivity and give more accurate feedback to employees and report the same to the higher management.
Listed below are some guidelines to optimize the implementation process of performance review solutions.
· Performance Review Methods
Performance review methods employed are many, and the important ones among them are employee self-evaluations, pay-for-performance, and 360 degree reviews. Factors such as the employee-manager ratio, the areas under assessment, the business culture and the size of the company are to be considered before deciding on a particular performance review method.
· Assess Performance Review Processes Currently in Use
While the process is getting automated and software driven, the organization should not completely discard the present system that has worked for them thus far. Instead, they should strive to arrive at an ideal blend of proven methods from the old and the new.
· Consult Key Managers
Consulting managers from different departments may help the organization choose a better application. Therefore, before hiring, a meeting must be called for and the applications must be discussed thoroughly by taking all opinions into account. Few brainstorming sessions with the managers on the topic will guide the organization towards the best choice.
· Configuration of Performance Review Tools
Performance review tools are designed to lend themselves to the unique needs of an organization, also bearing in mind its missions and beliefs. Settings are to be configured in way that customers can drop messages, managers can easily take notes and employees can leave feedback about peers. The tools also ought to be intuitive and the feedback received for every employee must automatically be summarized to allow a hassle-free review.
· Groom the Leader for Success
Specific training programs must be devised for heads of departments and managers. The managers should get adept at compiling the feedback data they alone have access to. Compilation of this data will help them write reviews of their subordinates, the way they are meant to be written. Managers acquiring the skill of intuitive navigation within the software will enable smoother roll out of the tool.
· Rollout Performance Review Program to Employees
It is in general considered a good idea to call in a meeting of all the employees while introducing a new performance review system. The doubts and concerns can be thrashed out once and for all. At the time of the rollout, such facets of this software that employees will have access to should be demonstrated, especially peer-to-peer reviews and self-assessments.
Top Performance Appraisal Solutions
1. Cornerstone OnDemand
Cornerstone OnDemand is a fully integrated talent management package intended for managing the complete range of activities right from recruitment to training. It has been acknowledged as a market leader in talent management by top analyst firms such as IDC, Gartner, and Forrester Research. It appeared in Gartner’s Magic Quadrant for Talent Management Suites in the year 2013.
Workday Inc. was founded in 2005 and operates from its head office in Pleasanton, California. The company provides human resource and finance computer software solutions on cloud. This HR software has an easy-to-use interface with real-time updates for making right decisions. Their HR automation solution will help you streamline the HR processes and allows your business to operate like a well-oiled machinery.
3. Saba Cloud from SABA
Saba is an important global player offering cloud solutions for talent management. Saba solutions are based on the Saba Cloud platform with scalable, sound, and secure architecture. Saba has been in the talent management industry for more than 16 years. Saba Cloud platform was recently upgraded with the latest technology and its talent management solution too underwent a major rebuild. Their headquarters are in USA and they have offices in more than 8 countries.
Synergita offers employee performance management application on cloud. It is one of the top solutions with easy-to-use interface and features to empower performance management culture through business. It operates from its main Corporate Office in Thanjavur, India.
5. Total Talent Management (from People Fluent)
PeopleFluent is a leading human capital management software vendor providing the same as a service on cloud. This comprehensive talent management suite offers a wide-ranging framework for vendor management, compensation, hiring, performance, succession, staff planning and diversity, as well as learning. Add to all this the embedded video, analytics and social collaboration, and you have the PeopleFluent Mirror Suite for Talent Management. The company was founded in 2010 and works from its Head
So, which solution is the right one for my business?
What we have tried to do precisely is to identify the various factors that businesses successful with their implementations have considered for evaluation of a Performance Appraisal tool. Evaluation based on the above discussed points may alone not help you in narrowing down your choices to the right product for you. While these factors should definitely be a part of your evaluation process you should also consider if this tool will be able to adapt to your current methods of running the operations in its entirety.