Results matter, reasons don’t. Any commercial undertaking which engages the services of an individual expects a certain output in lieu of compensation made. Thus, each organization has its own methods of measuring output. But the methods used currently belong to the past century when the economic, technological and demographical landscape was quite different which has left these methods irrelevant and irrational at times. This article is intended to portray the benefits of using modern technology to meet contemporary needs by linking a Performance Management System with an over-the-cloud HR Software.
Repercussions Faced in Running the HR Department without PMS:
The reward and punishment method has its pros and cons. In the past, companies had the privilege of making a choice when hiring employees and show them the door whenever they wish. Appreciation of work wasn’t considered necessary and thus work culture was shaped accordingly. But these situations are no longer prevalent and employee life cycle has also reduced drastically.
The trends such as gig economy, freelancing have surfaced with individuals being flexible about their career choices. So dealing with them in the old school way is potentially dangerous as employee turnover costs can’t be ignored. Retaining performers is very crucial but often the hard working and performing employees get neglected by managers which leads to ending up with employees who only do the talking.
Initiatives such as reviewing employees’ work on a weekly basis don’t receive much importance and don’t go beyond a couple of weeks. At the time of appraisals, there is no proper track record available leading to professional melodramas. Thus, the requirement of linking performance with HR functions such as Payroll and Appraisals.
How the PMS and HR Software duo can help:
A cloud-based HR Software allows the employees to report their work on a daily basis along with suitable parameters to help assess it. The work is well segmented in the KRAs and KPIs to make sense of the work done and it also helps employees to get an idea of where exactly to deliver. The information is fed to the HR Software and it compiles the data to analyze it automatically to provide intuitive insights to the reporting managers.
On the other hand, the reporting manager and the HR can obtain multiple reports to understand employees’ behavioural patterns and identify the practices which may hamper the realization of organizational goals. As the payroll software is over-the-cloud, the employees, as well as the managers, can review the performance from the comfort of their own devices at any time without being in the office.
The reports generated are also beneficial to the employees as they can analyze the areas where they are struggling by carrying out SWOT analysis. The struggling employees can be counselled and provided with relevant pieces of training.
The Financial Side of the Coin:
You may have thought of using a Performance Management System but there is little awareness regarding its pricing. Perhaps, a dedicated PMS is no longer required as HR Software usually have it inbuilt. The HR Software allows users to access the system without charging anything extra. The comprehensive reporting feature empowers the businesses to make wise decisions based on accurate reporting and enhances employee management.
The organization can also focus on strategic management as it can obtain information on every employee’s work and thus, harness their competencies. Businesses may also nurture talent and develop cross-disciplinary managers to make the most out of them. You can also identify the positive traits to incentivize them. For instance, you may award an employee at the end of every month for being punctual or give them some presents for helping other staff which may be small in terms of monetary value but they boost the morale along with creating a healthy environment.
So, if you’re considering to improve your employee’s performance and benefit from it, you need not worry as these products are priced very competitively. Your Performance Management System can also be linked directly with the Payroll to streamline the whole process. This is an already prevailing trend in the western hemisphere which will soon become a reality in the Indian subcontinent.