Automated Performance Reviews: Five Strong Motivations for Transitioning
Businesses nowadays need more workers. Before, they could replace employees who weren’t doing well. But now, they must find new ways to help everyone improve their jobs. To do that, companies are doing performance reviews more often. The Society for Human Resource Management (SHRM) suggests having reviews every six months, and many HR professionals like the idea of having reviews every three months. 90% of them are already using regular performance assessments and not the automated performance reviews.
But doing reviews often can be a lot of work, so many companies only do them once a year or skip them entirely. This can be even harder for big companies with many employees to evaluate. To solve this problem, HR professionals are using technology by switching to automated performance review systems. This change makes the process more efficient and accurate, and it helps employees and managers communicate better.
This article will explain why it’s a good idea to switch to an automated performance review system. It will show how using top-quality performance review software can save time and money and make the process of managing employee performance much better.
What is Automated Performance Management?
Automated performance management is a system that helps managers evaluate how well employees are doing their jobs. It uses data to keep track of how employees work and how they are progressing toward their goals.
When we compare automated performance reviews to manual reviews, there is a crucial difference. Reviewing and keeping an eye on how employees are doing is something that never stops. Managers must check their employees’ work and give them feedback regularly.
Even though many companies still use manual reviews, this way of doing things has several downsides.
Manual reviews have their drawbacks compared to automated ones. Here’s why:
- Less Accuracy: Manual reviews are more likely to be influenced by bias, whereas automated reviews rely on data to evaluate employees, making them less prone to bias.
- Time-Consuming: Manual reviews require a lot of effort from HR departments, which are often already quite busy. In contrast, automated reviews use software to collect employee data, making the process more efficient.
- Expensive: While setting up automated reviews may require an initial software investment, manual reviews are more costly, considering the time and resources HR spends on them.
Switching to automated performance reviews offers several advantages:
- Ease for HR: HR departments have many responsibilities, and automating performance reviews can reduce their workload. Performance management software sends notifications to employees for review completion and alerts managers for review approval. This eliminates the need for HR to email reviews to each individual.
- Review and Approval Notifications: Managing performance reviews for a large organization can be overwhelming. Automated systems handle this task efficiently, reducing the need for constant reminders.
- Actionable Data: Automated performance review software compiles employee data from multiple review cycles into a single report. This data helps identify both positive and negative trends, informing future reviews.
- Focus on People: Automating performance reviews allows HR professionals to concentrate on employees rather than the review process. This shift in focus enhances the quality of reviews for managers, employees, and HR.
- Comprehensive Record Keeping: Unlike manual reviews, automated systems store every interaction within the system. This ensures that all review data is readily available for annual reviews or other assessments.
To transition to an automated performance review system, start by finding a platform that can integrate with your existing review process.