Easy-to-use, affordable, and effective employee performance management for small and medium sized businesses looking to streamline appraisals and engage talent in ongoing feedback development. Award-winning features and guided set-up and training ensures performance management success now and in the future:online appraisals self-assessmentsreal-time goal tracking360° reviewsongoing feedback journalingtalent identification succession planningcompensation managementstatus tracking dashboardsguided setup and training for HR and end-usersHosted or on-premise deployment
ClearCompany is the easiest way to bring all employee review processes into a single, automated solution. Their easy-to-use software allows you to quickly set up reviews, including custom scoring tables, weighted sections, and free-form responses. Sections of reviews can be shared among multiple forms to further simplify setup and scoring. Flat-rate pricing allows you to send as many reviews as you need, as frequently as you need to, without worrying about the price tag. While their Performance Management System is incredibly powerful on its own, the complete ClearCompany Talent Management Platform also includes solutions for applicant tracking, new hire onboarding, and goal alignment; allowing you to seamlessly find, hire, onboard, review, engage and retain top performers. ClearCompany is also highly rated for customer support, providing all clients both dedicated Implementation and Relationship Manager as well as unlimited ongoing training, support and consulting services.
Performance Culture, Inc. is a web-based performance management platform that helps managers and employees improve performance through continuous coaching, timely feedback and meaningful recognition. The platform is designed to align company goals with employee expectations, coach employees on both performance and key behaviors, and manage team members using the performance values matrix. Performance Management is a crucial component in developing a culture that fosters team chemistry and keeps employees engaged and inspired. Performance Culture uses the Performance-Values Matrix to help you unlock the full potential of your team. The software includes Performance Reviews, Check-Ins, Coaching Templates, Employee Engagement Surveys, 360 Degree Feedback, Learning Management System and exclusive Coaching Videos.Performance Management is a crucial component in developing a culture that fosters team chemistry and keeps employees engaged and inspired. Performance Culture uses the Performance-Values Matrix to help you unlock the full potential of your team. The software includes Performance Reviews, Check-Ins, Coaching Templates, Employee Engagement Surveys, 360 Degree Feedback, Learning Management System and exclusive Coaching Videos.
Saba talent management systems provide you with a full set of capabilities to manage every aspect of workforce, organizational and succession planning. From organizational modeling and planning to building a leadership pipeline or bench strength for critical positions, Saba can help you see all of your people information in one place. No matter what sort of people-centric insights you need, Saba is your strategic platform for talent management.
Oracle's performance management solution fully automates the performance process and provides executives, managers, and employees with valuable and immediate insight into workforce performance progression and its alignment with organizational objectives.
The BirdDogHR Talent Management System is designed to centralize HR processes to manage your workforce from start to finish. With integrated modules for each stage of the employee lifecycle, the easy-to-use and mobile-friendly software helps more than 1000 companies nationwide attract and hire top talent, onboard and train employees efficiently, improve workforce productivity, reduce organizational risk and meet compliance requirements.
Namely is the HR, Payroll, and Benefits platform your employees will love. Finally, there’s HR software that employees actually use—built to fit your company culture. Manage all of your HR data in one place, with personalized service to help your company get better, faster. Namely is used by some of the world’s most innovative and exciting companies in media, technology, commerce, and more.
BambooHR is the number one HR software for small and medium sized businesses. BambooHR’s cloud-based system has beautifully designed, intuitive features including an applicant tracking system (ATS), onboarding with electronic signatures, automated time-off tracking, and innovative performance management. This gives HR managers more time for meaningful work. Executives get accurate, timely reports, and employees can self-service their time-off using a convenient mobile app. Clients include many industry leaders like Stance, Soundcloud, and FanDuel among thousands of others in over 80 countries worldwide. Visit bamboohr.com or give us a call to watch a free demo and start a free trial today.
Ultimate Software’s cloud-based UltiPro helps simplify and improve work experiences for employees at every level. Organizations can easily manage global people data and processes with UltiPro and ensure their people feel engaged and productive from day one. With UltiPro, you can deliver personalized recruiting and onboarding experiences, guide employees through important benefits choices, simplify complex payroll computations, efficiently manage time and attendance needs, support continuous performance management and development, and build proactive succession plans for the future. Most importantly, UltiPro’s solutions are supported by powerful business intelligence and reporting to help you drive smarter, people-focused business results.
PeopleFluent’s Performance Management allows you to align your workforce to corporate objectives, evaluate individual performance and measure organizational results. This complete performance management system provides easy-to-use yet highly effective tools such as goal management, performance appraisals, competency and skill assessment, talent profiles, development activities, mobile performance management, anytime-anywhere feedback, calibration grids, reporting and analytics, and multi-rater / 360 review functionality. With PeopleFluent’s Performance Management solution, you can improve business results, develop employees and retain key staff by aligning, establishing and measuring employee performance on a continuous basis.PeopleFluent also provides PeopleFluent Compensation. PeopleFluent Compensation provides a comprehensive, full cycle compensation solution that addresses Total Rewards, and when combined with PeopleFluent Performance, pay for performance. PeopleFluent Compensation enables full visibility through reporting, analytics, budget planning and pay and compensation statements.
Insight:Insight automates the entire hiring and selection process from requisition to hire and is tailored for the unique needs of public sector organizations. Reduce application review and screen time with Insight’s auto-scoring applicant tracking software. Produce weighted scores and rankings by combining online tests, screening protocols, performance exams, and situational tests. List open positions on your company website while maintaining its look and feel. Accept online job applications and ask job-specific supplemental questions. Track traffic and advertising sources and reduce the time and effort spent posting jobs and processing applications.Enhance applicant and staff experience by eliminating paper and reducing bottlenecks. Generate email notifications, maintain applicant history, track applicant skills, and more. Optimize your processes, visualize and analyze data, and fully grasp the impact of your HR initiatives. With Insight you have more than 90 standard reports, advanced ad-hoc reporting, and the dashboards you need to make your job easy. Analyze results, perform pass point analysis, check for adverse impact, view applicant flow, mean and standard deviation, item analysis, item discrimination, reliability, standard error of measurement, and more. Generate and manage your weighted eligible list, including configurable scoring rules and additional points processing to rank and refer applicants.Perform:Perform is the only full-featured employee performance management software in the marketplace that is packed with specific public sector functionality. Automate year-end and probationary employee appraisals and allow your HR team to replace manual systems. Analyze employee performance data to identify skill gaps and optimize employee development. Track progress on measured organizational alignment and progress against goals. Identify competency and skill gaps within your organization using one-on-one and/or 360 feedback, self-ratings, and competency models. Generate individual development plans and recommend trainings based on an employee’s competency scores. Visualize your workforce on the automatically generated organizational chart. Approvals, notifications, and to-do actions are displayed in the form of any activity stream. Align individual and team objectives with organizational strategy and manage employee performance and career goals. Powerful goal tools are included to ensure each employee is working on the “right things” to move the organization forward.· Configurable Performance Evaluations· Goal Library· Shareable Competency Content· Development Plans· Configurable Process Workflows· Ability to build Content sections for re-use· Configurable Rating Scales· Ability to build Library of Writing Assistants· 360 Reviews· Configurable Email Notifications· Automatic Evaluation Creation· Ability to perform actions in bulk for Employees EvaluationOnboard:Onboard enables new hires to become more productive from their first day on the job by streamlining new hire paper work, processes and training. New hires complete I9 and W4 forms online in minutes. Employees can sign forms using a mouse, allowing them to complete their new hire checklist online prior to day one. With Onboard, you can assign forms to specific employees, groups, and departments. Set up your required fields and approval routing, and you are done.Signatures look just like wet signatures because employees can use their hand and mouse to sign any online form. Additionally, new employees have their own access accounts with unique credentials for strengthened authentication and security. Configure your new hire portal with interactive social collaboration, questions and answers, documents, trainings, and videos. Communicate your organization’s mission and values, and relevant training information to new hires while they are going through the onboarding process.· Electronic Employee File· Federal I9 and W4 forms· Task Manager· Employee data upload· Build your own Onboarding forms**Onboard (ON) includes Federal I9 standard forms that are updated annually and Federal W4 forms updated every 2-4 years. NEOGOV:NEOGOV offers a background check application programming interface (API) integration that allows users to purchase, monitor status and collect data on their background checks. This is made possible by close technical integration with Partnered background check providers: NEOGOV provides an API which allows the customer to pre-populate Applicant or Candidate background check forms with first name, last name, and email address, automatically send an email notification to the Applicant or Candidate for further information needed for the background check (SSN, Date of Birth, consent signatures, etc.), NEOGOV through its’ Certified Eligible Partners will automatically start the background check process after the information is gathered. When results are provided by the Partner(s), NEOGOV will automatically display statuses for review and further hiring steps in Insight’s Online Hiring Center (OHC).Customer is responsible for maintaining strict access to the background check security roles in the OHC settings section called “Background Check”. Customer must contact Background Check Partner and NEOGOV immediately to revoke services if there is reason to believe that securities have been compromised.
Unify Your Entire Organization - With the power of Unified Talent Management, organizations can bring all phases of the employee lifecycle under one platform. Unified Talent Management delivers the single source of truth into an organization's entire workforce. Cornerstone OnDemand is the only truly unified system designed to enable comprehensive talent management, from a single, all-in-one platform. One data model. One login. One customer support team. One solution designed for success.
The SuccessFactors HCM Suite includes a complete set of tightly integrated talent management solutions, robust workforce analytics and planning, plus a next generation core HR solution. With over 3600 customers and more than twenty million users in 177 countries, SuccessFactors HCM Software is the most adopted Software-as-a-Service (SaaS) business software in the world.
Constraints on talent are undoubtedly hurting enterprise growth and profitability. If organizations can’t fill their ranks with the right people, they can’t move the business forward. More than ever before, organizations are looking to HR to attract, develop, and retain employees who can help them achieve their business goals.
Engage your workforce, align and assess talent, pay for performance, and plan your leadership succession. Workday Talent Management works seamlessly with Workday Human Resource Management to let you do all of this from a single, unified application.
Talentsoft provides solutions for recruitment, performance, career development, learning, and compensation management that deliver concrete results. Our 100% Cloud-based application helps you better manage every stage of your employees’ careers – and transform your investment in people into a business asset.
HR Performance Solutions was founded in 1989 and offers industry-leading performance management and salary administration applications. Our employee performance management software is time-tested, content rich and are used by over 100,000 professionals.Our solutions are designed by human resource professionals with decades of experience to be secure, effective, flexible and easy to use.
Simple employee evaluation software anyone can use! Since 2001, we've been striving to revolutionize the world of employee evaluations by creating user-friendly yet powerful performance management tools. Today, with over 800 companies worldwide using Trakstar to streamline performance appraisals and build strong goal-setting cultures, we're proud to say we’ve achieved our mission... and we’re not slowing down.Our Seattle-based team works hard to constantly improve our performance management system, so we can continue to offer the most user-friendly, customizable and affordable product for our client base, which includes organizations of all sizes and industries.
WebHR is a cloud-based human resource management solution that helps organizations manage their employees' employment lifecycle, from the time they were hired to retirement. The solution merges functionalities provided by human resource and information technology departments in one suite
Cezanne Performance Management transforms employee appraisals and performance reviews into a centralised, streamlined activity that’s simpler and more satisfying for everyone. Cezanne HR’s integrated Performance management module puts employer in control to set up as many forms and decide what to ask (and how to ask it), the rating or scoring approach you want to use and who to involve at each step of the process.
Synergita performance management is a solution to all employee-related difficulties! HR and managers. Synergita will help employers modernize Employee Performance Management, helps them in their goal management, periodic check ins, and employee development
PeopleGoal is a modular, customizable platform that allows companies to tailor their current performance management process, rather than be dictated by a strict formula. PeopleGoal intuitively links all areas of the performance management cycle online, in one place. The robust reporting suite allows senior team to instantly see as broad or as detailed a picture of the company's performance as they need it
Performly is a cloud-based human resources software solution used for employee performance management. It is suitable for businesses of any size across all industries. Performly allows users to list employee objectives, along with job descriptions, core competencies and plans for development and growth.
Zugata is a cloud-based performance review and goal management solution suitable for businesses of all sizes in a variety of industries. Key features include 360 degree feedback, development resources, anonymous feedback, goal tracking and integration with third-party HRIS systems
HRweb, offers employee information tracking, attendance, performance reviews or employee appraisals, self or 360 reviews, recruiting with applicant interface, training and more. HRweb helps organizations efficiently track and evaluate their workforce.
Performance Management Software: Choosing the Best Software for your Company in an Ever-Challenging Marketplace
By Gabriel Gheorghiu, founder and principal analyst at Questions Consulting, with a background in business management and 15 years experience in enterprise software.
Let’s be honest: traditional performance management — the process of rating employees’ performance and ranking them against their colleagues — is, at best, necessary. At worst, it’s a highly flawed process in need of updating and realigning to the work values of the 21st century. This perspective is not new or surprising to the many managers navigating the performance review process.
The challenge, in many cases, is that the approach to performance management has largely remained faithful to a work model that is no longer relevant for a large body of employees. In today’s workplace, over 70% of all employees are performing service or knowledge-related jobs. Performance measurement for these types of jobs is far more challenging, as it’s based on multiple variables. It is no longer relevant, in such instances, to measure performance based on a numeric calculation of output. Rather, performance is primarily measured by the skills, the attitude and the ability to work effectively within a team. The management of these skills requires time and ongoing coaching, so artificially measuring them at a single moment in time is less than beneficial.
Another consideration is the dated convention of following the annual evaluation cycle. Current business priorities rarely respect an annual cycle. With changing goals, strategies, and projects, employees are better served by reviewing their personal goals on a quarterly (or continual) basis, rather than an annual one.
With statistical findings that reinforce the less-than-favorable views of both employers and employees with regard to performance reviews, the opportunity for meaningful updates to this human resource process is overdue.
The Ideal Performance Management Software Product: Moving the Performance Review Process Into the 21st Century
Many factors contribute to the overwhelming emphasis on talent management in today’s marketplace, and market forces appear poised to continue in this vein. The growth rate in this industry is approximately 17% and, of the companies that will be investing in talent management software, 67% of those companies plan to purchase performance management software.
These market conditions provide an opportunity for both software producers and their customers to ensure that the software reflects the many changes and challenges in the business environment, along with the new relationship of reciprocity that exists between an employer and an employee.
As a result, there is a far more central role for performance management software in today’s marketplace. Challenges such as employee retention, employee learning, coaching and succession planning can all be more effectively addressed with the help of a robust performance management software.
Performance Management Software - Its Critical Role Within an Organization
As outlined above, the challenges that exist in our 21st century workplace are unlike any of the challenges faced by our modern predecessors. The reasons are not easily enumerated, but it is safe to say that the current workplace has undergone a sea change in response to both internal and external forces. Likewise, the role of human resources (HR) has had to evolve to maintain relevance and utility in this environment, and to do so in an integrated manner to ensure all systems of the organization are working together.
The principal function of HR is to align its strategic goals with those of the corporation in order to facilitate and provide employees the maximum opportunities for their personal and business success.Performance management importantly provides the means to measure and improve employee talents, and the technology that supports this vital function must encourage a transparent and agile process. Ideally, it should encourage an ongoing routine structured towards developing and supporting an employee’s career goals, as well as fulfilling the organization’s business and talent needs. The role of HR has clearly shifted from a rigid system of appraising performance to facilitating and enabling employees to achieve their employment goals. In so doing, the overall performance of the organization benefits appreciably.
This explains, in part, the focus on performance management in the marketplace and the need to compliment these objectives with the most appropriate and effective software. Performance management is perhaps the most complex function of HR, as its reach is very broad, and includes important activities such as:
- Joint goal setting:clearly defined individual and corporate goals
- Continuous progress review and communicating expectations
- Defining roles with achievable benchmarks
- Implementing employee training and development programs
But the outcome of these actions — which benefit from being performed in a continuous cycle — must maintain focus on developing a collaborative process between managers and employees in order to ensure a far more motivating and successful outcome. In other words, the focus of the process should move away from judgement to a more inclusive and cooperative tone that stresses transparency, support and bifunctional improvement strategies.
This approach is more likely to empower your workforce to gain the skills and knowledge to foster their own career development, as well as contributing to the success of the organization.
So what are some of the key functionalities that an optimal performance management software product should incorporate?
Key Functions of Performance Management Software
The critique of the traditional performance management process — specifically the annual performance review process — has had some researchers in the field advocating for its complete dissolution. While it is clear that the process is in need of reform, wiping it out completely may create more harm than good. Individual employees operating within an organization can only function in an interdependent and effective manner if there is a system in place for transmitting shared goals, project directions and some manner of accountability. The issue becomes not how to eliminate the performance management process, but how to use technology to support, strengthen and update a relevant and necessary process.
This is where technology steps in and can make an appreciable, positive difference.
Performance management software offers a range of functional options and features; some of these functions form part of a requisite group of features that are present in all performance management software, while some features are more specialized and fulfill very specific requirements.
In order to approach the task of software selection, especially in a field as competitive as performance management, it’s a good idea to start the search with a firm understanding of the following details:
- Make the time to understand your own, unique workplace environment — assess its strengths and weaknesses with respect to the process you currently have in place
- Spend a little more effort understanding the weaknesses of your process, and then begin your assessment of how technology can assist and improve it
- With a better understanding of your company’s needs, the process of comparing and assessing the different options available has a better chance of succeeding, as it is done with an understanding of your priorities.
Clearly envisioning how you and your workforce will benefit from the introduction of a performance management solution moves this process much further along, rather than selecting from a lengthy list of features and functions in isolation of the whole picture.
Benefits of a Well-Functioning Performance Management System
While benefits, generally speaking, are subjective and tied to a specific set of circumstances, we can settle on a set of benefits that would largely fit the majority of organizations. For example, it’s difficult to argue against increased productivity; an empowered and engaged workforce; greater alignment between business strategy and employee performance; and an effective process for looking after long-term prosperity, or succession planning.
When selecting a performance management solution that will not only improve, but enhance the process for all involved — managers and employees — it’s a good idea to begin to stress the advantages (to employees and managers) that all will have the benefit of, and the achievable enhancements to, their routines:
- Simplicity or ease-of-use: most of us avoid using convoluted and confusing software, no matter how many great features it may contain.
- Transparency: a system that promotes a clear understanding of employee expectations for their work, along with a clear path to progressing within the organization and how they contribute to their company’s overall success.
- Management and coaching: in order to reach some goals, employees may require new skills to achieve them, so identifying these skill gaps is critical. But identification without a solution is not only self-defeating, but also demoralizing for an employee. The benefit of working with a motivated employee is improved performance and engagement, so consistent feedback and coaching are essential.
- Driving business results: when goals are aligned, e.g. corporate and personal, each employee’s output supports reaching a company’s goals.
- Underlying knowledge of your organization’s talent: knowledge about your workforce’s skills and abilities allows you to confidently plan for both present and future contingencies. The identification of employee goals, performance level, and development activities are keys to unlocking a competitive advantage for your company. This knowledge can be in the form of data that you measure and assess in order to arrive at the best possible insights.
A Closer Look at Some of the Foundational Functionalities
The key functions that make up what we believe to be the fundamentals of any good performance management solution are linked to the benefits discussed above. How well individual vendors provide the necessary structure for their solution to seamlessly assist and support managers and employees in these functions will be important criteria for judging the software.
However, at the top of the list of options should be those priorities that make sense for you and are beneficial for your organization. The selection process for this software requires more than ever that, as a buyer, you are equipped and ready to articulate your company’s requirements and expectations, so you can evaluate which solution is best equipped to support your short- and long-term priorities.
In other words, you will have to become adept at navigating through much of the noise of a vendor’s marketing strategy. Remaining faithful to your own core list of priorities is the best approach going forward.
The following 5 key functions represent a selection of crucial functionalities that form a base for most companies looking to strengthen their performance management, routine and forms a strong base from which to launch a more specific search:
- Alignment of Employee Goals and Business Objectives
- Performance Management
- 360 Reviews
- Continuous Performance Management
- Career Development Planning
Alignment of Employee Goals and Business Objectives ensures that an organization’s strategic objectives are understood by their workforce and that a course correction, if required, can simply and efficiently be achieved. This ability is critical to a company’s success. A powerful tool that provides managers with the means to provide their employees with meaningful feedback regarding personal goals and link this information to business objectives is very important.
A Goal Management tool efficiently automates the process aligning, monitoring and measuring of personal and organizational goals. The value of this module is that it breaks down organizational objectives into individualized components that are both manageable and measurable, and are converted into actionable goals for employees. For managers, it invites daily reinforcement of goals, comments, and probability of success.
Additionally, goal management allows managers to track individual, team, and company progress.
Key Features of this function include:
- Goal Categories that help report and track goals
- Goal alignment promotes organizational objectives throughout the company by cascading goals from the top business strategies to the individual goals and objectives of the employee. There is also a linking of goals from one goal plan to another.
- Group or Team Goals facilitate a common goal that many employees, as a team, can work on together.
- An Initiatives tool that allows the creation of departmental and corporate level initiatives. This helps to align with goals that are specific to departments.
Performance Management, in its 21st century iteration, is not a return to the dreaded annual, non-transparent approach to assessing employees. Nor is it a rating-free performance environment that equalizes all performance. Performance differentiation is probably here to stay for the foreseeable future, in which case transparent criteria and standardized decision-making processes need to replace individual manager judgement.
To facilitate this process, a Performance Management tool can help managers measure individual contributions, making the task of deciding who to keep, reward, or provide targeted development a lot clearer and fairer.
Also, the alignment of goals and performance to compensation helps to create an objective, merit-based system that rewards high performers, but also helps develop other employees. Standard, calibrated measurement also contributes to an objective system with fact-based decisions and eliminates manual measurement and intuitive, visual comparisons of employees.
This tool promotes faster user adoption, increased employee engagement and better quality reviews and outcomes.
Key Features of this function include:
- Writing Assistant, a content development tool with an extensive library of development and mentoring recommendations
- A workflow assistant to define the route that all employees should follow during the performance review process
- A tool that helps screen the comments that users have entered in a form for potentially improper or discriminatory language
- Email notifications that are triggered when specific activities or events occur, e.g. when a form is created, routed, or overdue
- An analytics tool to assist managers with an analysis of the performance management, and about employee strengths and capabilities
360 Reviews are designed to provide additional feedback on employee performance and behavior from all sources, both inside and outside an organization. The 360 Review tool reinforces an evaluation and feedback process that is a valuable tool for employees and managers alike.
From an organization’s perspective, this process opens up channels of constructive communication and feedback, enhances managerial skills, contributes to the culture of continuous performance improvement, and, most significantly, becomes a catalyst for change within an organization.
From the individual’s perspective, it increases and contextualizes self awareness, helps managers improve their leadership skills, provides insight and understanding of one’s strengths as well as areas for development, and reinforces the concept of taking control of one’s own development and growth.
Key Features of this function include:
- 360 Developmental Surveys & Multi-rater Assessments collect quantitative and qualitative data from key constituents, both inside and outside the organization, and can be graphically displayed by various categories
- Writing Assistant, a tool to help raters write concise and meaningful feedback
- Assignment tool permits managers to select the assessment criteria for each reviewer. Also incorporates named or anonymous feedback from peers, managers, direct reports and external constituents, such as customers or partners.
Continuous Performance Management does not envision performance management as an event or conversation that takes place around the formal annual performance review. It is recognized, more appropriately, as an integral part of an ongoing relationship between manager and employee. And performance management has been expanded to cover all the development, coaching, and reward activities that occur throughout the year, both formally and informally.
Continuous Performance Management is a tool that enables quick and frequent feedback on work between employee and manager, or more lengthy, formal coaching advice or development planning.
Key Features of this function include:
- Automated Coaching tools & Assignment of a Coach in the system. Coaching boosts an employee’s professional growth and performance.
- Links to on-demand information by employees to request feedback about themselves. Managers can request information about their employees from people in the organization.
- Workflows that track coaching and mentoring activities.
All these tools provide a digital record and data about the impact that the meetings (informal feedback, coaching, development planning) have on employee performance and engagement.
Career Development Planning in a dynamic work environment where employees have different responsibilities and different managers needs to be a fluid process that evolves along with the employee’s responsibilities. A dynamic development process should allow for adjustments and evolving circumstances, but should maintain a core group of actions.
Key Features of this function include:
- Arranges meeting time with the employee to discuss career development plans and hopes. Asks and assists the employee to come prepared to the discussion, with plans on how they see their career unfolding.
- Provides the opportunity to consider how to achieve both short- and long-term goals.
- As a manager, it’s important to lay the groundwork for your employee’s development, but also to be flexible enough to incorporate your employee’s own view and path for development.
- Encourages participants to provide and become knowledgeable of the options for development: workshops, job shadowing, mentoring, and coaching on specific skills.
- The process is set up to be cooperative and allow for employee input in all stages of development. The key is to maintain a clear, simple, and realistic set of options with ongoing support and feedback.
How to Effectively Assess Performance Management Vendors
The investment in performance management software within the business community has been, and continues to be, very significant. As previously referenced, 67% of companies investing in talent management software are prioritizing performance management software. This isn’t a big surprise if you consider that talent management remains one of the most formidable challenges facing organizations today. Every successful organization relies quite heavily on a talented and skilled workforce, so companies direct a lot of resources to finding and attracting top talent. But without an accompanying process that tends to the development and cultivation of that workforce, that investment will be for naught. Hence, the focus on performance management software and the importance of finding the best solution for your company is critical.
All sound and effective software selection processes have many procedural actions in common. The start of the process is usually completed in-house, with a close examination of your organization’s unique circumstances. As there is no one-size-fits-all solution, an organization’s goals, needs, and industry are important when making a selection. However, there are a few generic categories that can quickly help draw some basic distinctions:
- Business size
- Application type
Business size divides companies into two categories: enterprise sized and small-to-medium (SMB) sized businesses. Most enterprise sized organizations look to integrating a performance management system with their existing HR or enterprise resource planning (ERP) systems. This eliminates the concern regarding the integration of new software with existing systems.
SMBs also benefit from a robust performance management system. This brings focus on an important factor : scalability. In other words, you want your systems to grow at a similar pace as your business. But at some point, you may not have enough functionality in the existing system, and it may be more prudent to invest in another system.
Application type can be divided into best-of-breed and an integrated suite. If the HR solution in place is still working well and efficiently, a standalone system with good functionality may be appropriate, as long as it integrates with the existing platform. On the other hand, an entire talent management system that incorporates performance management would provide maximum efficiency and perfect integration.
The next steps in the selection process involve a gathering of pertinent information about the vendors themselves. Questions like vendor viability, product capabilities, and presence in the market are all important to consider. This forms part of the critical evaluation process which should be analyzed by the selection team. Some of the more obvious points of review should include the following:
- Research the vendor’s solvency, as you will want to ensure that they will be in business for a while.
- Investigate the vendor’s level of service and support post-purchase. Organizations with large bodies of employees have serious responsibilities to them. Software problems slow down important programs that directly impact the welfare of the workforce. Your vendor must be prepared to step in and resolve any and all problems.
- The principal players in the performance management software market are Cornerstone OnDemand, Workday, Peoplesoft - Oracle, and SuccessFactors. It would be prudent to include one or more of these major players in a selection of vendors to interview.
- Finally, the final selection will require executive buy-in, and a compelling proposal is the key to getting that buy-in. Fortunately, performance management software is extremely critical for every individual, department, and company as a whole. Consequently, convincing company executives of its necessity is a fairly easy sell. The more challenging aspect will be to convince executives that you have completed a thorough and thoughtful process to arrive at the best possible solution for your company.
The process of software selection is not easy or simple, but with the best information in your arsenal and the discipline to follow the plan outline, this challenge is totally surmountable.
Vendors have many resources at their disposal to create very slick presentations that may not focus on your specific needs, but participating in a vendor presentation can be very informative if you prepare and come equipped with your needs and priorities firmly etched in your mind. To keep up with the pace and amount of information you will receive, SelectHub offers some helpful tools. There is a lot of information to organize, including keeping track of detailed notes on key features and functionalities.
At the end of the process, and with as much data as possible to review, gather your selection team and come up with the best analysis possible to reach the best decision possible.