Building An Effective Performance Management System

Employee performance management is a function where companies assess and evaluate employees’ work. 

For many, this merely refers to the year-end employee review forms that employees and their respective supervisors fill up.

But if you’re looking to drive real improvements in your employees’ performances, maybe it’s time to consider a proper performance management system:

  1. What is a performance management system? How do we make it effective?
  2. How to automate a performance management system

What is a performance management system?

A performance management system is a systematic process for HR managers to set expectations and monitor employee performance regularly. This is to help employees move towards performance goals, and align their work achievements to organisational effectiveness.

Different companies may have different employee performance review protocols. But here’s a list of components that you can incorporate for good practice:

🎯  Goal setting

To make employee performance reviews more meaningful, you should evaluate their performance against a set of expectations. This also makes it easier for you to determine if an employee is performing under, at or above the criteria that you defined.

On the other hand, employees also need to be aware of their goals, so that they will know where to work towards.

Traditionally, goal setting is done by managers and supervisors. But it’d also be good to discuss with your employees about it. Understand how they want to contribute to the organisation, what challenges they hope to take on, the current difficulties they have, and use these information to shape appropriate goals for them.

🌟  360-degree performance reviews

When we talk about reviewing performance, we often think about employers evaluating their employees.

But to gain a more holistic view of an employee’s performance, you should consider these other forms of evaluation too:

  • Employee self-evaluation – An opportunity for employees to reflect about their progress, and helps employers understand what their employees feel about their own roles.
  • Peer evaluation – Have other colleagues assess the employee. This would reveal how the employee is interacting and collaborating with other colleagues, providing implications on his/her teamwork abilities.

🗣️  Follow-up with feedback

Don’t leave your employees hanging with a “Room for Improvement”, make sure you follow up with them.

Find some time to discuss what they should maintain or improve on, reiterate their goals, and provide recommendations on the next-steps they should take.

If your employee hasn’t been performing up to standards, this is also a good time to better understand their struggles, and work out a solution with them.

🎉  Reward well-performing employees

While giving advice to under-performing employees, you should also make an effort to recognise the accomplishments of those who’ve done well.

This can come in the form of a public compliment, financial reward, anything you can think of. Show your employee that you value his/her achievement, and this could well motivate them to keep up with the good work.

🕒  Review regularly

Feedback should be an ongoing process to ensure employees receive timely updates on their progress. Conducting more employee performance reviews will help them continuously improve and drive greater results in the long run.

Some companies may worry that having extra employee performance reviews would be too time-consuming, but really, they don’t have to. Check out how you can speed up and automate your performance management system below.

How To Automate A Performance Management System

There are different ways to automate your performance management system. In this post, we’ll cover one of the solutions, known as workflow automation. Here’s an overview of the steps you can take:

1. Plan your performance management process

Start by mapping out the flow of your performance management system. As you can see below, workflows are great for visualising all the steps in your process. 

When mapping out your performance management system, consider:

  • What are the tasks to be incorporated? How do I arrange the tasks in sequence?
  • Are there any if-this-then-that conditions involved in the employee performance review process? If yes, at which step do I split the process up into different paths?
  • Which stakeholders are needed at each step of the process?
2. Create an employee performance evaluation form

The performance management system usually begins with employees, peers and managers filling in evaluation forms.

But rather than to submit hard copy evaluations, it’s much easier to do it online. There are many software that you can leverage on to create digital forms, and Forma is one of them. 

3. Set up your automated workflow

Use a workflow software to construct your workflow and incorporate automation plug-ins:

This sample workflow is designed such that when an employee submits the digital self-evaluation form:

  • An automatic email will be sent to the manager, informing him/her of the employee’s submission.
  • The self-evaluation form responses will be automatically transferred to a selected database.

Today, it’s no longer just about creating an effective employee management system, but an efficient one.

You can try it out by building your performance management workflow with Forma for free.