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Top 5 Advantages of Performance Review Software

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Staff interviews have long been the cornerstone in the assessment of staff performance. Annual employee reviews became popular in the 1940s, and by 1960 they were used by about 90% of all companies, according to the Harvard Business Review.

During the last decade, and especially in recent years, we have seen that employee interviews have developed into more than the traditional annual evaluation process. In 2016, 82% of employees reported that their company conducted annual appraisals, a number that had dropped to just 54% in 2019. Recently, SHRM reported that 49% of employees have annual or semi-annual performance reviews.

Today, growth-oriented companies understand that they can only grow when their employees also grow. In these companies, the HR teams must take a proactive approach to employee interviews to ensure that employees are constantly aligned with the organization's goals, vision, mission and core values. They must also prepare employee interviews that both follow up and encourage the employees to develop.

This is where employee chat software comes into play.

We have talked about the definition of employee interviews, how they have changed and why they are important. We have also looked at how employee interviews should be carried out today, and what role the HR department plays when it comes to promoting a process that puts employees at the centre.

In this post, we'll take a closer look at how important software is to proactive performance management, to creating continuous feedback loops and to fostering a strong corporate culture. We also take a closer look at the key features, benefits, implementation strategies, and some of the best employee engagement software solutions available today.

What is Employee Engagement Software?

Staff meeting software is a tool that enables HR to create, send and manage regular staff meetings digitally. Traditionally, employee interviews were conducted on paper and were largely based on what employees and managers could remember from the past. That's probably why only 28% of CHROs believe that annual evaluations are accurate, and 55% of employees believe that evaluations don't help them improve.

Today, we know that employees want to have employee reviews more than once a year and want to discuss their achievements often. They are also looking for opportunities to develop. We also know that it pays for companies to review and discuss their achievements often, and to give employees new skills or competence enhancement.

Software tools enable HR teams of all sizes to implement a continuous performance management strategy and effective performance review cycles. The software makes it possible to carry out employee interviews which both make it easier to keep track of achievements and progress, and which actually improve overall performance at individual, team and company level.

The best solutions for employee interviews are not only used to conduct the interviews themselves. Instead, they are modules in a performance management system used to manage all the moving parts of employee performance.

This includes, among other things, setting, adjusting and following up targets, providing continuous feedback, analyzing performance at company level and much more.

Characteristics of the best employee interview software

Many employee communication software features are indispensable, while others are good to have, depending on your company's needs. But the list of wants and needs is not the only thing you should consider when choosing software. You should also consider whether the software has features that make it a good fit for your company.

Take a look at this list of important elements and find out what is important for employee interviews.

1. Standardized and tailored assessments and assessment scales

Employee interviews are usually role-specific, which ensures that employees who perform the same tasks are evaluated according to the same criteria. But it is also challenging and time-consuming to create one effective assessment, not to mention assessments for each individual role. And while you wouldn't use the exact same standards to evaluate the performance of an HR generalist and a customer service representative, you want to be able to compare performance across the organization.

That's why you need software that offers both out-of-the-box and fully customizable rating and review options. Software that comes with its own library of templates eliminates the need to create your own, and offers a variety of templates that you can use immediately after implementation or adapt to your needs.

If you want to create your own evaluation from scratch, you can use sample evaluation questions from the template library or write your own. You can also choose a rating scale to be used throughout the company.

With software, you can ensure that employee interviews and assessments are standardized across roles and departments, that employees are assessed fairly and that you can analyze performance throughout the company.

2. Automation tools

One of the hardest - and most important - aspects of employee engagement is keeping them on track and consistent. But it is also difficult for the HR department to keep track of how many employee interviews are carried out, and to manage several cycles and assessment types. With software, your team can automate email reminders and review cycles and easily send the right reviews at the right time of year.

3. Available on mobile devices

85% of Americans have a smartphone, and for about 15% it is the only device they use to access the Internet. Look for employee call software that is mobile-friendly, making it easier for employees to complete calls when and where they have time.

4. User-friendly and intuitive

While payroll software may only be used by a few in the HR team, employee engagement software is used by every employee. When evaluating potential software solutions, you should test the software as an HR user, as a manager who will conduct the employee interview, and as an employee who is the subject of the interview.

5. Robust reporting and analysis functions

Data collected by the performance software is only useful if it is presented in a way that makes sense. Look for software that offers a variety of different performance reports with the ability to drill down into the data at a detailed level. Being able to create custom reports is an added bonus for your business.

6. Part of a complete Talent Management system

The most valuable employee engagement software is not just part of a larger performance management system, but of a holistic Talent Management System. A Talent Management system has tools to manage the entire life cycle of employees, from recruitment and onboarding to engagement and staffing planning. These systems help you create a holistic experience that attracts the best talent, engages and develops your employees, and makes good plans for the future.

The 5 biggest benefits of employee engagement software for HR and employees

While there are very few advantages to traditional employee interviewing methods, there are countless advantages to employee interviewing software. The HR department - and the employees - will quickly discover these benefits of using HR software to conduct employee interviews.

1. Get started quickly with the employee interviews

Employee engagement software gives you all the tools you need to start a review cycle as soon as you implement the solution, as well as the ability to create your own reviews. Pre-defined templates lower the barrier to entry for busy HR teams who may not have time to put together their own employee interviews.

2. Give fair assessments

The aforementioned templates also help your team design and conduct fair evaluations that ensure employees are evaluated based on the same criteria as their colleagues. Reduce prejudice and support diversity, equality, inclusion and belonging (DEIB) in the organisation.

3. Engage the employees

Employee interviews are not only a means of finding the best employees and solving productivity problems. Good employee interviews can make the difference between disengaged employees who cost you money, and employees who thrive, are interested in their work and grow steadily. Statistics on employee interviews show that employees who receive feedback from their manager daily are three times more engaged than those who only receive annual feedback.

4. Save time and money

Traditional employee interviews cost - across the company, Deloitte spent 1.8 million hours on employee interviews, and at Adobe, 2,000 managers spent around 80,000 hours. According to the employees, it is not necessary - 55% of managers say that they could save time on HR tasks if they had the right tools. In an age where HR spends almost $200 per employee on administrative tasks, software is the solution that saves time and money in the long term.

5. Gain insight

Software is capable of collecting tons of data - take your phone, for example. It can collect data about you and your daily habits, such as how long you sleep, how many steps you take each day and how old you are. It uses the data to send you lifestyle suggestions, such as when you should go to bed and when you should take more steps.

Employee engagement software does something similar, collecting an incredible amount of performance data and aggregating it so you can easily see correlations and make comparisons. The HR department can use the data to make suggestions to HR managers, managers and other departments.

For example, the performance data can reveal managers who consistently give too high or too low a score to their employees. Then you can adjust the scores to ensure they are fair and reflect actual performance, and you can also train the manager on how to evaluate employees.

How to implement software for employee interviews

Implementing new software takes some learning, but there are many ways to make it easier for your team. Here are some tips on what you should do to be successful with the implementation:

1. Make your team aware that you are looking for new software and ask for input on wants and needs.

2. Set a date for when the software will be fully implemented, so you can choose the right supplier.

3. Buy the software that best suits your business.

4. Create an implementation plan so that everyone agrees.

5. Provide training to all employees who will use the software.

6. Plan what to do when software updates and upgrades require additional training, so you get the most out of your investment.

7. Complete the transition!

8. Follow up with employees to see if they're learning the software and get feedback on how it's working.

In conclusion, IceHrm is at the forefront of revolutionizing performance management through its cutting-edge employee engagement software. With features like standardized assessments, automation tools, mobile accessibility, user-friendly interfaces, robust reporting, and integration with comprehensive Talent Management systems, IceHrm empowers organizations to achieve continuous growth and foster a culture of development.

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