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How to Monitor Employee Performance in 2023

December 28, 2022 | Blog
Managers and employees can find it exhausting to monitor employee performance reviews, no matter what they call it. Many view performance reviews as the annual "report cards." They are often seen as time-consuming, unpleasant experiences.   Despite its negative consequences, the employee performance review is not going out of fashion. It is still a key component of any organization's human resource priorities. This process does not have to be a hassle if you have a solid review system. This is why we have created this guide to help employers understand.  
  • Why performance reviews are so important
  • How to monitor the performance reviews
  • Tips to help you pass your performance review successfully
  Although some managers love hybrid work, others dislike it. The reality is that hybrid work will be around for the foreseeable future. Many companies had already begun to allow remote work, even if only for a few hours per week, long before the global pandemic.   Monitor Employee Performance   Managers face many challenges when using the hybrid model of work. It leaves managers with little to no insight into their employees' productivity. They don't have the same insights when employees work on-premises. This includes how much work they produce and the quality and reasons for any changes.   Hybrid work allows employees greater freedom to run their own businesses, which many workers consider a positive. Some employees have trouble managing their time and struggle with this self-directed work model. Some employees suffer from burnout as the lines between work and home have blurred.   These systems can be used to address the concerns. In this era of pandemics, traditional solutions that focus on monitoring employee activity and logging suspicious behavior to identify possible insider threats have been redesigned to track productivity, monitor employee health and wellbeing, and improve employee engagement.  

What Are Performance Management Tools?

  These tools can be used to monitor employees' performance. These tools allow top management to determine if individual goals align with organizational goals and if employees are moving positively.   These tools are great for employees because they help track their performance. Employees can use the information to make improvements or direct their efforts in the right direction.   According to a study, traditional performance reviews actually made performance worse. Traditional reviews are no longer effective. It is time for a change in the way we work. A performance management tool is one option.  

Tips to Choose the Right Employee Performance Monitoring Software in 2023

  Be aware of the strengths and weaknesses of your current performance management system and establish the right expectations for the new system before you make the decision to upgrade. It will make it easier to manage the performance management system. A good performance management system will streamline your HR processes and reduce overheads. Performance management systems often offer a wide range of benefits and features that add value to your company.   Even if the system has a few priority features, choosing the best system for your organization is important. It cannot be easy to choose the right system. You will need to contact different vendors to get a demonstration of their products.   This checklist will assist you in making a wise choice.  

Business Goals

  It is important to determine the long-term business goals before you invest in a performance management program. What are you looking to achieve with your performance management system? Is it able to monitor employee performance easily? Does it align with your business goals?   An effective performance management system should give employees continuous, objective feedback based on their performance. It should also facilitate linking the employer's goals and priorities to the employee's goals. The system's goal alignment and agility drive the desired results. Employees perform well when they receive relevant feedback about their performance.  

Software User-friendliness

  Employees should find the performance management software easy to use. Employees will be more likely to adopt the software if it is intuitive and easy to use. The software's user-friendly design and features encourage flexibility in use. It doesn't require much training, and employees can begin using it immediately after it is released.  

Compatibility

  You must ensure that the new performance management system does not interfere with any existing system. You should also ensure that the new system is seamlessly integrated into your existing system. This will prevent employee data loss and ensure that existing modules are compatible.  

Learning and Development

  Performance management systems must include relevant learning modules that keep employees up-to-date with changing business requirements and promote employee growth and development. Employee retention and commitment to the company are enhanced by a culture that encourages continuous learning and growth.   The PMS should be capable of identifying each employee's specific training and development needs. This will allow the PMS to provide the appropriate training to match the employee's aptitude and capabilities to help them chart a career path.  

Real-Time reports

  The performance management system provides real-time reporting that allows you to measure employee performance daily. This system also provides instant satisfaction for employees' contributions to the organization.  

Why are Performance Reviews Important?

  Performance appraisals can help employees and managers learn and grow. They are an integral part of the:  

Clarifying Individual Roles

  Employee evaluations provide a chance to meet with employees, clarify their roles and goals, and assess the company's impact on them. Reviews are also a great way to clarify responsibilities and answer questions.   Confusion leads to frustration, which can lead to decreased productivity. Regular evaluations are an important step towards increasing productivity and performance and ensuring that each employee takes responsibility for their actions.  

Regular Feedback

  Your company is committed to the hiring, developing, and keeping the best employees. These employees care about their reviews, which means you should, also.   Officevibe reported that 43% of high-engaged employees receive feedback at least once weekly. This compares to just 18% of low-engagement employees. These figures show that constructive feedback from supervisors can make a big difference.   Employee performance reviews can help employees understand their strengths and areas for improvement and encourage them to take responsibility and find fulfillment in their work.   Managers should also document performance reviews. This can help support employee development and potential employment discrimination and wrongful termination lawsuits.  

Career Development

  Performance reviews include how employees have performed with their goals and the setting of new goals. Managers can then identify new areas for mentoring and training or where the employee might need additional guidance.   The evaluation can also provide information about future succession plans for employees in certain roles. If an employee is having trouble, the appraisal can provide information and feedback to help develop a performance improvement plan (PIP), if necessary.  

Employee Recognition and Rewards

  Employers can keep track of employee rewards such as bonuses and time off. Rewarding team members will motivate them to continue their excellent work. Seeing the achievements of their peers will encourage them to do better and reap the rewards.  

9 Common Employee Performance Reviews

  You can use many types of review systems, both individually and in combination. Managers and employees must be clear about the performance levels, regardless of their chosen method.   Here are five of the most popular review styles.  

Self-Evaluation

  This requires employees to evaluate their performance against predetermined criteria.   Pros: A manager will usually consider the self-evaluation during an official review to encourage more detailed discussion. It is possible to be insightful if there are differences in the manager and employee evaluations.   Cons: This style might not accurately reflect performance as many employees tend to rank themselves too high and low.  

Behavioral Checklist

  This one is simple: An employer will list the behaviors that an employee must exhibit to make them successful. An employer answers a series of yes/no questions. Each question could be assigned a value, or the checklist may be weighted.   Pros: Behaviour vary based on job types, so that this technique can be easily adjusted for each position. It produces clear results that allow for easy comparisons between employees when done properly.   Cons: The checklist does not include detailed answers or explanations, so you will need to add comments that provide more detailed feedback.  

360-degree Feedback

  The 360-degree feedback review includes feedback from subordinates/direct reports, managers, non-direct supervisors, peers, and, potentially, customers. The manager will then assess the employee's work performance and technical skillset and consider outside inputs.   Pros: This style gives a holistic view of an employee's performance. This feedback can include a review of an employee's leadership and character skills. This broad feedback helps to cancel out biases and other data points.  

Management By Objectives (MBO)

  Simply put, the management by objectives (MBO) appraisal method involves the employee and manager setting and meeting goals whether the employee meets their goals within the deadlines.   Pros: Because the employee is involved in goal-setting, it is clear that the goals can be achieved. This method makes it easy to identify success and failure.   Cons: Because the MBO style ignores other success metrics unrelated to goals, some important factors may not be considered during the review.  

Project-based Appraisal

  This review of employee performance is used to assess an employee's performance following the completion of each project. Discussion points and questions will be centered on the employee's most recent work.   Pros: Project-based evaluations are efficient, results-oriented, and cost-effective. These provide specific feedback to team members and give them action items they can use to improve their work or prepare for the next project. This feedback cycle is popular with many employees.   Cons: Managers would have to conduct a project-based assessment after each project. This could prove time-consuming. They can run smoothly if there is a solid system.  

Competency Assessment

  Competency assessments compare an employee's current skills and target level. Managers can use this to identify employee strengths and areas that need improvement. This evaluation can be done via interviews, observation, or forms.   Pros:: Competency assessments can help organizations.  
  • Take a detailed look at the skills gaps in their workforce to help you set larger business goals and strategies.
  • To help employees learn and grow, develop mentoring and training programs.
  • Recognize gaps in talent and find new talent to fill them.
  Cons: A system is required to ensure scaling, privacy, and ability analytics accuracy. You'll also need action plans for each employee to achieve real results.  

Rating Scale

  This performance review system is also known as a grading method. These criteria can include behavior, traits, competencies, and completed projects. Most employees are rated on a scale from 1 to 5 or 1 to 10.   Pros: This scale is easy to use and has simple functionality. Managers and employees need to be on the same page regarding the system (e.g., what each point means or if the ratings are based on traits or behaviors).   Cons: Managers and employees may have different views of the scale. This could lead to unrealistic expectations and discrepancies. Some employees might consider a 3/5 acceptable, while you may find it above satisfactory.   Depending on the size of your company and the type of employees you have, you might use any of the methods or combinations of them.   A rubric for scoring is a way to make it easier for those who use numerical methods. This is because:  
  • Respecting the standards of all.
  • Managers can score better.
  • Showing employees what they can do to improve their scores
  • Employees will feel satisfied with a score that "meets expectations."
 

Behaviorally Anchored Rating Scales (BARS)

A behaviorally anchored rating system (BARS), similar to the traditional rating scale, typically uses a scale from 1 to 5. This method uses behavior statements to assess staff members' performance based on how they handle certain situations.   Pros: Bars are a great way to communicate with employees and managers about their expectations for their job and the actions they need to take to improve them. It uses a mix of quantitative and qualitative data. This is perfect for companies that:  
  • Employ multiple employees in similar or identical roles
  • It is necessary to eliminate bias or rating errors in current performance management processes
  Cons: Employee evaluations can be tedious, especially for large companies. Leaders must spend time developing the appropriate scale and conducting an appraisal for each team member.  

Human Resource Accounting

  Cost accounting is also known as human resource accounting. It evaluates an employee's return on investment (ROI). It compares the financial impact of an employee with the cost of keeping them.   Pros: Human resources accounting is ideal for positions where employee costs and contributions are quantifiable. Sales reps can be evaluated based on the revenue they generate. Upper management can then be assessed based on their profit or loss.   Cons: There's always a gray area regarding the benefits and costs that an employee brings to your company, especially for certain positions. Learning your values can lead to discouragement, negativity, and even jealousy in employees.  

The Top 5 Tools for Performance Management in 2023

  We are driven to find the best performance management solution, just like you. We have listed 5 of the best HR software and their pricing and features in the section below. Take a look at these tools, and make your choice.   You can use any of these tools to improve performance management within your company, whether you work remotely, on-site, or in a hybrid environment. This will make it easy for you and your employees.  

15Five

  15five, a performance management tool, offers holistic engagement and performance solutions that help HR leaders manage their performance.   The tool offers powerful performance management tools and coaching and learning that empower individuals to reach new heights of success.  

Key Features:

 
  • Easy-to-use analysis tools and evidence-based engagement assessments
  • Performance reviews in detail
  • OKRs and goal-setting features
  • Managers can be trained and coached
  • Integrations with third-parties
  • Apps for Android and iOS available free of charge
  • It is simple to use
 

Pricing:

 
  • Engage - $4 per user/month (billed annually).
  • Perform - $8 per month per user (billed annually).
  • Focus - $8 per month per user (billed annually).
  • Total engagement - $14 per user per Month (billed annually).
 

Engaged

  Our second choice is Engaged. According to the performance management tool, they "execute performance, enable growth and development, and engage your people." You can monitor your performance with advanced features like 360-degree feedback, goal management, etc.   Engaged users report a 90% increase in employee engagement.  

Key Features:

 
  • Dashboards in detail
  • C-Suite employees can access real-time dashboards that provide information
  • OKRs and goal alignment
  • Simple, thorough, and effective performance reviews
  • Get real-time feedback
  • Get comprehensive feedback from all stakeholders
  • Online learning is encouraged through training programs
  • You can use Mentoring Complete to locate the right Mentors within your organization
  • Collaboration and communication can be improved
  • Surveys
  • Gamify your behaviors
 

Pricing:

 
  • For pricing information, contact Team Engaged
 

BambooHR

  BambooHR is a tool that assists with onboarding. The HR system offers complete solutions for performance management and monitoring.   It assists with data collection, maintenance, and analysis, which improves talent hiring, onboarding, and compensation management, and helps to develop your company culture.  

Key Features:

 
  • Analyzes, collects and organizes data
  • Applicant tracking system
  • App for mobile hiring
  • Employer records
  • Onboarding checklists
  • E-signatures
  • Time-tracking
  • Payroll
  • Employee satisfaction, well-being, and performance are all measures
 

Pricing:

 
  • BambooHR can provide a price quote at no cost to you.
 

Synergita

  Synergita, a well-known performance management tool, offers business performance management, engagement, and OKR solutions. It is trusted worldwide by over 350,000 users for its robust features and efficient solutions.  

Key Features:

 
  • Keep track of employee information
  • Goal setting and management
  • Continuous feedback
  • Recognition and rewards
  • The score for company culture
  • 360-degree feedback
  • Evaluations of performance
  • Rating HiPo
  • Employee development plans
  • Skill training
  • Smart Job promotion features
  • E-communication via emails
  • Detailed reports
  • Employee engagement surveys
 

Pricing:

 
  • Synergita Engage: $2 per employee per calendar month (billed annually).
  • Synergita OKR $4 per employee per Month (billed annually).
  • Synergita Perform – $4 per employee per calendar month (billed annually).
  • Synergita Perform Plus – $7 per employee per calendar month (billed annually).
 

Namely

  This is the last performance management software we'll be discussing in this article. This tool can assist HR departments and individuals in managing their performance. This tool is specifically designed for small and medium-sized companies.   Namely, organizes your HR data in one platform. It also offers an intuitive interface that can be customized to meet business needs. It combines the expertise of HR professionals with modern technology to give your business an edge over its competitors.  

Key Features:

 
  • Automate tasks
  • Store new hire forms
  • Collects eSignatures
  • Recognizing employees
  • Evaluations of performance
  • Goal setting tool
  • Reports and analytics for HR
  • Compliance Library
  • Assistance with recruitment and payroll
  • Integrations
 

Pricing:

 
  • To get a quote, call Namely's team.
 

The Benefits of Employer Management Software:

  Performance management's main purpose is to balance the organization's goals and employees' performance. Performance management software can help you achieve this by helping employees improve their productivity and tracking their performance.   These are just a few benefits that an employee management system can bring to an organization.  
  • Employee Engagement: As you review an employee's performance, they must be included in the discussion. They will be kept informed by regular feedback and a visual overview of their performance. Engage with employees by using tools for performance management.
  • Recognition of Employees: While some employees avoid performance reviews, many look forward to them since they help improve their performance and give them recognition. You can engage them and motivate them with tools.
  • The downside to traditional reviews is that they are only conducted once a year. Modern tools have made it possible to eliminate this problem by giving employees regular feedback to help them improve their performance.
  • Collaboration The best thing about a performance management tool for employees is the increased involvement of all employees in the process. This makes collaboration more efficient across the entire organization. Communication becomes easier and more frequent.
  • Accurate reports: Tools are based on data collected over time. Therefore, the reports generated by these tools can also be accurate. These reports can be used to improve existing processes and make better decisions.
  • Goal Management: Performance Management aims to link individual and organizational goals to streamline efforts for greater productivity. You can ensure that progress is steady and on track with performance management systems' goal management capabilities.
 

Common Rating Errors

  There is a lot of room for error because humans do employee performance reviews for humans. It is important to have a solid, clear system and a rubric in place.   Here are five common errors in performance rating and how to avoid them.  
  • Inadequacy in Differentiation: Supervisors often cannot defend their ratings and are reluctant to pass judgment, so they rate everyone equally. This can lead to leniency (everyone receives high ratings), severity, or an overall feeling that everyone is doing well (everyone is rated in between). This is often due to poor training or failure to explain that performance reviews are an important part of the managerial job.
  • Recency Effect Many managers don't have a review process or system to continuously evaluate performance, give feedback, or report on results. When reviewing, managers often forget the previous performance period and cannot weigh the most recent events.
  • Halo/Horns Effect: This is when an employee performs very well or poorly in a particular area, and the manager assigns the employee a rating of correspondingly high to low in all other areas.
  • Personal bias/Favoritism/Personal Bias: It is not a secret that personal feelings or impressions about employees can influence managers. This affects their employee evaluations.
  • Inaccurate Information/Preparation: Managers sometimes fail to take the time to discuss an employee's performance with those who work closely with the employee, leading to an inaccurate assessment.
  The employee assessment should be thoughtful. Do not rush it. Instead, take the time to discuss the employee's contribution and their performance with the company. You should think about how to reengage them within the company in the coming year or during your review period.  

9 Bonus Tips to Conduct Successful Performance Reviews

  These are our top tips for managers and employees to ensure smooth and efficient reviews.  
  • For each employee reporting to you, keep a "notepad." These can be used to note down successes and areas for improvement.
  • To celebrate success and encourage further behavior, send emails.
  • All issues can be addressed in person. Follow up by email.
  • Provide the employee with a blank review along with the rubric at the time of hire or during the orientation period.
  • Review the item ASAP (no more than a day and no less than an hour).
  • Don't sugarcoat poor performances.
  • High performance should not be underestimated.
  • You can control the discussion if there are any negatives that the employee doesn't want to accept.
  • After completing the review, look at the last year's report (if applicable).
  You can make your review process easier for everyone by keeping things simple, clear, and consistent.  

The Key Takeaway

  You need to consider your company's needs and what you hope to gain by implementing an employee monitoring system. Next, you must consider how it will be used and what visibility it will give your employees.   There are many arguments about the importance of employees' effort and time. The new reality of working from home has made this even more relevant. Managers have difficulty determining and tracking the productivity of their employees, especially with distributed workforces that require flexible work hours.
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