For Generation Z & Millennials, technology is not just a tool, but a way of life. The same goes for the young Gen X also to a large extent. Together they constitute 80% of the total corporate workforce in India.
Career aspirations and desire for professional growth, the two key elements to be captured under any good robust Performance Management System (PMS) are also different for this combined workforce from that of old Gen X and Baby Boomers.
Hence, it is important for the organizations to integrate technology with the PMS to keep this combined workforce engaged and motivated. Continuous evolution of technology in the field of PMS is a necessity today and, in the time to come.
The first step in any robust PMS is to set clear and measurable objectives for the employees aligning organization’s vision and strategy. Technology helps in creating and communicating these goals in a better way using online platforms and tools that allow people managers to define objectives and subsequently track performance against those objectives throughout the performance cycle.
The objective of the PMS today is not just evaluating employees’ performance at the end of the year to give performance ratings and annual increments or judge the performance of the employees in their current role, but also to assess the potential of the employees to take higher responsibilities, identify and address the skill gaps and development needs of the employees and lastly a proper succession planning in the organization.
Technology plays a vital role in designing and implementing learning and development plans that are tailored to employees’ goals, preferences, and potential in alignment with organizational needs. Along with the necessity, the following are the five key reasons for the rapid evolution of technology in the modern performance management system:
1- Improve Productivity and Efficiency
With the use of technology in workplaces, organizations have been able to increase their productivity and efficiency at a rapid pace.
Processes that once were manual and time-consuming can now be achieved quickly and efficiently with digital tools, applications, and systems. Further, all the components of a robust PMS viz. performance and potential evaluation, learning and development, and succession planning can be easily managed with the aid of technology.
Traditional manual methods are cumbersome and require a lot of preparation, reporting, and follow-up. Technology-driven PMS streamlines the entire process for both managers and employees.
With check-ins scheduled automatically into employee calendars, customizable evaluation templates, and goal tracking, managers can focus on high-quality feedback instead of just managing a process.
2- Data-Driven Decisions
Technology helps in providing managers with access to vast amounts of data, which they can use to make informed decisions about employees’ performance. By analyzing data, managers can identify trends, patterns, and insights that can help them to improve the performance of their employees.
Further, the data-driven performance discussion and evaluation eliminates the room for disagreement between managers and employees, leading to a fair performance discussion. PMS software generates reports on project progress, performance, and milestones. In short, proper data visualization tools enhance decision-making.
3- Continuous Feedback
Since technology-driven PMS is something in real-time, managers can address issues or appreciate them in the moment, while it’s top of mind rather than waiting weeks and months, when details can tend to be forgotten.
Studies show that employees seek regular performance-related dialogues. With the help of technology, this aspect of the performance management system has been largely addressed.
Technology helps in tracking and measuring progress and provides timely feedback. Further, it makes it easy to gather feedback from multiple sources for a 360-degree perspective that includes insight from managers, peers, subordinates, and all other key stakeholders.
The modern approach to performance management system is all about gathering and implementing feedback continuously. Organizations can now better anticipate issues based on current performance, making timely adjustments to keep employees on the right track which is not possible without the help of technology.
“Technology-based Performance Management System enables employees in receiving data-driven continuous feedback to do their best work and for their professional development”.
4- Apt for Hybrid Work Environment
Technology-driven PMS is a need and perfect for the hybrid work environment. Employees can log in anytime to review progress toward objectives, ask questions, provide updates, and complete self-evaluations.
Also Watch: How to Improve Performance in 8 Easy Steps: Marc Effron, Click Here
Cloud-based PMS enables seamless collaboration between managers and employees, regardless of their geographical locations. Software as service (SaaS) platforms provide 24/7 access for managers and employees, making it perfect for the hybrid work environment.
5- Fair and Consistent
In traditional reviews, there’s little consistency in the feedback and metrics provided by managers. Each manager has a way of assessing and evaluating performance of their employees. Once completed, those reviews tend to get filed away and forgotten. Technology-based PMS allows HR to utilize vetted templates for metrics, goal setting, and progress milestones.
It builds an employee performance and potential profile that managers and employees can easily refer to transfers into Human Resource Information System (HRIS) programs and integrates with e-learning strategies and assignments. In a nutshell, technology is now an integral part of PMS, simplifying processes, improving communications, and tracking continuous performance with ease.
The technology-based future of performance management is an essential component of leading successful digital transformation. The future of PMS is more data-driven, flexible, more continuous, and more development-oriented. It’s focused not just on individual employees but on skills; teams and organization.
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