Times have changed, and so has performance management. Annual employee reviews are provenly outdated and unhelpful. Traditional performance management styles are out – continuous management and appraisals are in.
Annual reviews were invented during times when most companies functioned exclusively by paper-based systems. These yearly appraisals kept employees in check and went hand-in-hand with the dominant approach to performance and productivity back then.
This type of management was followed by management by Objective (MBO) in the 80s. Then in the 2000s – employee management went online and the market experienced a software boom. Ever since the performance management digitalization, there was a shift toward a new HR trend called continuous performance management.
Thanks to this rapid development, most successful businesses use a data-driven approach. This means that performance is managed, tracked, and rewarded with the help of data gathered by software tracking employees’ activities.
Modern performance employee tracking man employee track engagement is continuous, but that doesn’t mean that managers and employees are in contact 24/7. This means they have a more open relationship and frequently talk about personal goals, business goals, career development, and overall performance.
If you want to learn more about data-driven appraisals and performance management and its benefits, keep reading.
Employee Reviews vs Performance Management
You’ll often hear that performance management is key to organizational success, but what does it exactly entail? Ideally, performance management is about creating coherence and enhancing collaboration through optimizing strategy, and solutions and empowering employees. This allows for more precise financial planning, higher morale, and higher overall productivity.
First, let’s make a few things clear. Many people mistakenly believe that performance management is only about an employee review. However, creating employee assessments is only a small part of the overall performance management process.
Performance management is both a method and a process. It’s a method to achieve company goals and it’s the intricate decision-making process, that results in improving team performance and overall company success.
The stages of performance management:
- setting expectations and planning work
- developing the ability to perform
- monitoring performance continuously
- periodical performance appraisals, ideally through frequent communication
- rewarding good performance
In an ideal world, performance management is about having the ability to use the information, in this case, gathered data, to make actionable, effective decisions. Let’s dive into some of the main benefits of using monitoring data for performance management.
Bettering Employee Performance
The value of real-time productivity information and proactive feedback is almost immeasurable, particularly in fast-paced work settings. Monitoring data collected by an employee tracking app can paint a detailed picture of an employee’s performance, in just a few clicks.
Through continuous monitoring, managers can identify undesirable behavior at any time in the employee’s performance. This means that they can provide their assistance in real-time, not when it’s too late.
Managers can evaluate their employees’ performance in peace, without stressing about whether or not they forgot something important. They can also react promptly if they notice through monitoring data that their employee needs extra support, more training, or is starting to get overworked.
Monitoring data is valuable because Gallup’s research shows that employees want more frequent feedback, making them feel more engaged at work. Many have also noted that frequent feedback offers them meaningful and useful insight, in comparison to annual reviews.
Better performance management is also directly connected to improved overall employee performance. When employees feel like they have the support and the information they need from their employer, workers often have moments where they exceed their usual productivity levels. The more communicative and data-driven your team is, the higher the chances of fantastic employee reviews and top employee performance.
Employees working in environments that foster “frequent and fast feedback” are agile, inspired, motivated, and more likely to stay with the company.
Well-Devised Employee Development Plans
To be a successful manager, you need to do a lot of observing and planning. A big part of planning as a manager involves setting expectations and goals for your employees. They need to participate in the entire process, from start to finish. It’s important that their own performance goals are measurable, achievable, and understandable.
Here, you can use screen monitoring data to understand what type of action plan would be best for a specific employee based on their prior performance. Employees’ performance data can also show that they’re more than ready for some new, added responsibilities.
Employees are looking for work where their talents and efforts get acknowledged, not to serve as mindless robots for a company’s profits. As an efficient manager, you need to evaluate and address the developmental needs of your employees, even if they struggle to talk about them.
Employee development means expanding an employee’s ability to perform through training, introducing new skills to them, giving them bigger responsibilities, and so on. Developmental opportunities lead to better job performance and build stronger competencies in a worker.
More Detailed & Useful Performance Data
Monitoring software, also helps you track important data points for individuals, teams, departments, and your entire company to support more strategic planning and further development. With different metrics in place, you can easily distinguish top talent and reward them for their work, thanks to employee tracking data.
The rewards can be formal or informal, it’s up to you to de. Efficient management means that employee behavior is managed through consequences; no matter if they are positive or negative. This creates a fair and unbiased work environment that promotes self-improvement and independence.
A good manager doesn’t just set goals and plan work. They measure employee progress related to those goals and give frequent feedback that helps employees reach higher work standards and expands their skill set. Setting goals with guidance and consideration helps create a culture of empowerment and fairness.
With a software solution, work procedures such as performance reviews, succession planning, and performance calibration, can become more efficient, systematic, and productive. With the times changing, this modern tool can help your business adapt to a more hybrid and flexible work model.
Managers can create better plans and set up clearer goals with their employees with the help of monitoring data. Thanks to the power of real-time monitoring data, underperformance is incredibly easy to spot. This way, you can assist the employee immediately with whatever they may be struggling with. The same goes for overperforming workers who might easily slip into burnout. All in all, employee monitoring data improves and elevates employee satisfaction and overall productivity.