The traditional methods of performance review and management aren’t as popular as they used to be, and for good reason.
When it comes to performance management, several key elements come into play. It goes beyond keeping track of the number of hours employees spend glued to chairs and incorporates positive feedback, frequent communication, and achieved targets. In any company, these elements ensure effective management, regardless of who takes on what role. Sounds easy, right? Well, most things are easier said than done.
In practice, performance management is often overlooked and, ‘if they’re present, they’re performing’ is considered good enough to gauge productivity. Actual productivity and performance have little to do with where you are and how you complete tasks. It transcends spending 9 hours at the office or coming to work every day to fulfill your role. And, that’s where productivity and performance management tools come.
With more companies shifting their focus towards progressive management styles, the demand for assisting tools and software has also grown. Forward-thinking companies are investing in making environment more agile but before investing in software, it’s important to understand your company’s needs and the business model to cut through the noise. Not every software offers all features – some focus on planning and scheduling while others primarily target financial aspects of business and how that impacts performance. To compare the features, pricing and deals of popular tools, productivity apps and performance management software, check out DigitalSupermarket.
Just type in the names of your preferred choices and compare the pros and cons of each software, its features, functionalities and pricing all in one place.
How Can Performance Management Boost Productivity?
Performance management tools and software align systems, resources, employees and goals to create a formidable work environment that’s essential for both the employee’s and company’s growth.
As the ratio of customers in the market grows, so does the number of projects that a company has to juggle. To get things done on time, allocate resources, deliver contracts, create communication flow and execute strategies, companies need modern technologies that remove the need for helicopter management style to monitor efficiency.
So how can this happen? Let’s take a look!
1. Easy Communication
The biggest issue with conventional project management is a hindrance in end-to-end communication, especially when it comes to the exchange of feedback between teams and the manager.
In any project, big or small, managers are usually overseeing multiple teams while keeping track of multiple aspects of the project such as finances, logistics and marketing. It becomes quite difficult to communicate with every team member, provide feedback while still ensuring timely deliveries.
On a wider scale and from a long-term perspective, effective feedback and communication are key when it comes to realizing what changes need to take place.
83% of employees are happier at work when they receive timely feedback and train for improvement. With performance management applications, it becomes easier to offer real-time feedback through digital tools.
This is the reason behind Facebook’s popularity as one of the best places to work at. Making use of digital performance tools, sending and receiving feedback in between review cycles is the norm at Facebook headquarters.
2. Allocation of Projects and Tasks
A big part of productivity is being clear on what tasks need immediate attention. The old method of allocating tasks to employees is slow and can create confusion. With the help of specific project management applications, employers can quickly assign tasks.
Performance management applications do more than just make a list of immediate tasks. These applications ensure consistency when it comes to equal task distribution and goal tracking. Without a digital footprint, it is very easy to set a goal or assign a task and forget about it.
With the use of SMART goals, employees know exactly what they need to achieve. They are also made aware of what managers expect from them every day. To achieve this, clear KPIs must be defined for every department within the business. To make the process of establishing these metrics easier, it can be helpful to use sample KPI libraries that include the most common indicators that can be measured for every area. A constant reminder of individual goals and KPIs helps achieve collective team targets.
3. More Time for Managers
A study revealed that managers spend more than half of their working hours on paperwork. Being human, it is impossible to spend so much time on one thing, and still be expected to give time to something else.
This is where a digital worker such as performance management software comes in. Online systems allow managers to digitize and digitalize everything, cutting back time on searching, compiling and streamlining the data. As a result, they have more time to allocate towards achieving targets and working on the core functions of the business.
Performance Management in Post-Pandemic World
While digital management tools have been around for a while now, the recent COVID-crisis and subsequent lockdowns made it essential for almost every business, small or big, to invest in planning, management and productivity tools.
With teams working remotely, most businesses had no way of knowing how employees were doing at home. While their concerns were valid because remote work was a break from the norm, many quickly caught up, adjusted and adapted their business models to new working conditions. It is worth noting that approximately 16% of companies around the globe were hiring remote workers before the pandemic was even a reality, so the tools were already there.
Once the pandemic hit, instead of focusing on having employees work overtime, most companies resorted to progressive methods. This included offering training and communication. They focused their attention on communicating and understanding what their employees needed in terms of skills. Despite the widespread fear that remote work may affect employee productivity, research showed that shifting to remote work motivated employees even more since they could now work with flexibility while also cutting down on commute hours.
Despite these numbers, research further shows that 44% of companies around the world don’t allow employees to work from home at all.
There are several opportunities and challenges associated with working from home and an impact on performance. This has led most companies to make use of project management applications.
But, one thing should be kept in mind!
Project management software may vary in functionalities and features.
When shopping for one, it is best to keep your requirements in mind. What is it that you are looking for specifically? Do you need help with employee progress tracking? Or do you just want a system to handle and create drafts of important documents? Are you a beginner or a pro at performance management software? How many employees do you have?
Ask yourself these questions before investing in one for optimal results.