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What Are Employee Performance Management Tools?

A selection of tools on a white background.

What roles do employ­ee per­for­mance man­age­ment tools play when it comes to improv­ing com­pa­ny effi­cien­cy and productivity?

There are a lot of mov­ing parts in any organ­i­sa­tion, but if you want to make the most out of your com­pa­ny and your work­force, per­for­mance man­age­ment needs to be high on your pri­or­i­ty list. Per­for­mance man­age­ment isn’t some­thing to be ignored until a prob­lem presents itself. Rather than being a rem­e­dy, it’s a pre­ven­ta­tive mea­sure that can pre­vent prob­lems from occur­ring in the first place.

An increased focus on per­for­mance man­age­ment can make a busi­ness more effec­tive and effi­cient, improve lev­els of employ­ee engage­ment and boost com­pe­ten­cy lev­els with­in your com­pa­ny. To ensure you ben­e­fit from all these per­for­mance man­age­ment advan­tages, you will need to intro­duce and utilise effec­tive per­for­mance man­age­ment tools.

You might have heard the phrase per­for­mance man­age­ment tool’ before, but what exact­ly are per­for­mance man­age­ment tools? What ben­e­fits do they offer, what forms do they come in and how have they evolved over the years?

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Employ­ee Per­for­mance man­age­ment tools help to moti­vate your workforce

You will prob­a­bly agree that employ­ees are the lifeblood of your com­pa­ny. They keep process­es tick­ing along and they ensure that all SMART objec­tives are achieved to on time and to stan­dard. You might also have heard that engaged, ded­i­cat­ed employ­ees far out­per­form those who are dis­il­lu­sioned and frus­trat­ed. This is why one of the biggest aims of per­for­mance man­age­ment tools is to engage and moti­vate employ­ees to do their best and go that extra mile for their employer.

Per­for­mance man­age­ment tools can do this in a vari­ety of ways. One per­for­mance man­age­ment tool that can get your employ­ees excit­ed about their work and eager to per­form well is that of aligned SMART objec­tives. These objec­tives can be designed to be stretch­ing while pro­vid­ing your employ­ees con­text on their work and how it helps to progress com­pa­ny goals. Using an upwards align­ing process to the over­all organ­i­sa­tion­al goals ensures that the whole com­pa­ny is unit­ed and push­ing in the same direction.

Recog­ni­tion and reward schemes are also vital per­for­mance man­age­ment tools, espe­cial­ly when you con­sid­er that 80% of employ­ees work hard­er when they feel appre­ci­at­ed. Most employ­ees are more moti­vat­ed by appre­ci­a­tion than mon­ey and not only can a recog­ni­tion scheme boost per­for­mance; it can also min­imise vol­un­tary turnover.

Yet anoth­er great tool to moti­vate employ­ees is that of per­son­al devel­op­ment objec­tives. Devel­op­ment objec­tives have been shown to be a dri­ver of employ­ee engage­ment and organ­i­sa­tion­al per­for­mance. Per­son­al devel­op­ment objec­tives can help employ­ees achieve goals, help an employ­ee climb the ranks of a com­pa­ny and allow them to become pro­fi­cient in skills they tru­ly care about.

Per­for­mance man­age­ment tools stream­line organ­i­sa­tion­al processes

On top of improv­ing indi­vid­ual per­for­mance, per­for­mance man­age­ment tools can help to stream­line organ­i­sa­tion­al process­es. Great per­for­mance man­age­ment tools are able to remove red tape and save time while mak­ing work­ing life eas­i­er for employ­ees, man­age­ment, and HR.

As an exam­ple, we can look to the intro­duc­tion of reg­u­lar per­for­mance check-ins. Replac­ing annu­al appraisals with check-ins can save a com­pa­ny a lot of time. On top of this, they are more effec­tive at improv­ing per­for­mance. They pro­vide greater lev­els of clar­i­ty, improve lev­els of com­mu­ni­ca­tion and ensure man­ag­er and employ­ee are on the same page and up to date with regards to performance.

A per­for­mance man­age­ment tool can refer to a soft­ware package

While per­for­mance man­age­ment tools can be process­es that are put in place, such as fre­quent per­for­mance dis­cus­sions and recog­ni­tion schemes, a per­for­mance man­age­ment tool can also refer to a soft­ware pack­age. For exam­ple, our own Clear Review per­for­mance man­age­ment soft­ware is a per­for­mance man­age­ment tool that can be used to improve com­pa­ny-wide com­mu­ni­ca­tion, facil­i­tate real-time feed­back and sched­ule one-on-one meetings.

Thanks to our soft­ware, thou­sands of employ­ees are enjoy­ing more reg­u­lar and more effec­tive per­for­mance con­ver­sa­tions with their managers.

Per­for­mance man­age­ment tools should be tai­lored to suit your business

It should be not­ed that although per­for­mance man­age­ment tools such as SMART objec­tives and check-ins can work in any busi­ness, the lan­guage you use to sup­port these tools needs to be tai­lored to your own culture.

For exam­ple, the frame­work for a one-to-one check-in at a bank is like­ly to be very dif­fer­ent from that used in a col­lege. For this rea­son, when you are search­ing for a per­for­mance man­age­ment soft­ware, it is impor­tant that you find a provider where the lan­guage can be cus­tomised. This way, you will get the best return on invest­ment and you will enjoy a great improve­ment in terms of performance.

Per­for­mance man­age­ment tools must change as the years go by

Per­for­mance man­age­ment tools aren’t con­cepts to be imple­ment­ed once and nev­er read­dressed. As time goes by and our knowl­edge of per­for­mance man­age­ment advances, we learn that changes are required in order to con­tin­u­al­ly improve employ­ee and man­ag­er per­for­mance. For this rea­son, HR should always keep up to date on per­for­mance man­age­ment trends.

To illus­trate how per­for­mance man­age­ment tools can fall in and out of favour, we can look to the tra­di­tion­al annu­al per­for­mance review. This used to be one of the most com­mon per­for­mance man­age­ment tools, but in recent years, the annu­al appraisal has fall­en out of favour. It is becom­ing increas­ing­ly clear that a sin­gle year­ly per­for­mance dis­cus­sion isn’t effec­tive. It tries to accom­plish too much in one sit­ting and takes up too much man­age­ment time. As a result, com­pa­nies have react­ed and intro­duced con­tin­u­ous per­for­mance man­age­ment, which incor­po­rates more reg­u­lar check-ins.

If you would like to find out more about our con­tin­u­ous per­for­mance man­age­ment soft­ware sys­tem, book a demo and find out what our own per­for­mance man­age­ment tool can do for you and your organisation.