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Why You Should Consider Modernizing Your Performance Management System

Performance management is a critical aspect of any organization's overall success. Clarity of expectations is a key element, and a great performance management system helps employees understand what is expected of them and it provides the feedback and support they need to meet those expectations.


However, traditional performance management processes can be time-consuming, confusing, and demotivating for both managers and employees. This often leads to ineffectual, inconsistent, or absent performance discussions.


Modern performance management systems offer a more agile, data-driven approach that can help organizations keep pace with the rapidly changing business landscape. Here are a few reasons why organizations should consider implementing a modern performance management system:

  1. Improves Employee Engagement. A modern performance management system can help increase employee engagement by fostering regular, two-way communication between managers and employees. This open dialogue helps employees understand what is expected of them, and it provides them with the support they need to reach their goals. Regular communication is timely and specific, and can help employees feel more connected to the organization and their work. It can also help managers identify and address performance issues in real-time.

  2. Increases Transparency. Modern performance management systems are designed to be transparent and accessible, allowing employees to see their performance data and feedback anytime, anywhere. This increased transparency can help employees feel more empowered and motivated, and it can help managers make informed decisions about employee development and compensation. Formal reviews should never be a surprise in terms of the feedback an individual receives.

  3. Streamlines Processes. Modern performance management systems are designed to streamline the performance management process, making it faster and more efficient for both managers and employees. This can help organizations save time and resources, and it can help ensure that performance management is not just a once-a-year event, but an ongoing process that supports employee development and success. Many HRIS programs, such as FolksHR allow employers to automate and streamline the process, saving valuable time while helping standardize processes.

  4. Provides Insights and Analytics. Modern performance management systems often come with built-in analytics tools that can help organizations make data-driven decisions about employee development and performance. This can help organizations identify areas for improvement, and it can help managers make informed decisions about employee compensation and promotions.

If you're finding your current performance processes lacking, maybe it's time to consider updating your approach to a more agile and transparent system.

Having a more agile, data-driven approach can help organizations keep pace with the rapidly changing business landscape. By fostering regular, two-way communication, providing regular feedback, increasing transparency, streamlining processes, and providing insights and analytics, modern performance management systems can help organizations improve employee engagement, support employee development, and drive business success.

Not sure where to start? Let us help. Schedule an introductory call here.

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