Making Sense of Performance Management

As performance-management technology continues to benefit employers and employees alike, HR professionals have an expansive selection of solutions from hundreds of vendors due to their extensive HR software comparisons and HR software reviews. That's making it increasingly difficult for companies to choose an appropriate product, just with the human resources software.

Further complicating matters is the fact that the very definition of performance-management technology is evolving. In the past, these HR software solutions and time tracking software helped employees manage their goals online and enabled supervisors to track their progress. These days, performance management encompasses performance reviews and appraisals, goal management, competency management, performance planning, career-development planning, compensation management, and feedback mechanisms, regardless of the HR software and HR platforms used.

So what should be a company's first step toward selecting an HR system solution in today's confusing performance-management solution landscape? For starters, companies must decide whether to purchase a solution from a core HR provider specializing in ERP (Enterprise Resource Planning) or a niche vendor.

"For years and years, there literally were no niche solutions available on the market and so companies used ERP-provided tools," said Levensaler.

She also noted that the key ingredient of an ERP system is the ability to create a unified database. Human resource management systems and HR software comparisons come in handy here. 

But that was long ago. Today, core HR software providers such as Oracle and SAP deliver out-of-the-box, enterprise-wide human resource applications that are easy to integrate. While many companies have created their own highly customizable HR software solutions using technology provided by ERP providers, Levensaler warned that the version you use with ERP really makes a difference. She explained that while the most recent version of an HR system solution with performance-management capabilities may offer the "latest and greatest functionality and have reached parity with some of the niche providers, companies that are relying on an ERP system solution that is two versions back can't take advantage of that new functionality." What's more, unlike niche HR system solutions, upgrading an ERP solution is an enterprise-wide project that can take years to complete.

Another factor companies need to consider is whether to choose a hosted or on-premise performance-management tool when looking for an expert HR application software. If a company already has an ERP system in place, then it would be wise to consider enhancing its already existing performance-management capabilities. If a business is starting from scratch, however, studies suggest that the SaaS (software as a service) model is a winning bet.

In fact, an IDC study reported that the popularity of SaaS is growing and that, on average, 82 percent of surveyed vendors' performance-management solutions are delivered via SaaS.

Nor should issues of data privacy and protection discourage companies from selecting a SaaS approach. Said Levensaler, "The advancements in SaaS, the security infrastructure and the data management that some of these solution providers offer are superior to what any one company can offer in terms of security even within their own firewall ."

Making the most of a performance-management solution, however, doesn't simply end with the vendor-selection process. It includes sifting through a wide range of HR software reviews, and HR software comparisons provided by various HR software companies. Introducing performance management into the workplace "is a radical cultural shift for people and it's not just about technology," said Levensaler. For this reason, companies need to ensure that the proper training and incentives are provided to drive adoption.

Human resource management suggests performance management as its most significant managerial tool when integrated with the expert HR system software and HR applications. With enhanced performance management on an expert hr platform, you gain the ability to measure organizational improvements. 

The three main sets of interleaved activities that human resource management discusses when enhancing performance management include planning, coaching, and performance review. 

If you closely study the HR software reviews, and the ongoing human resource management software programs, it is easy to distinguish the engagement and performance levels of the human resource department employees. 

Due to the continuous and necessary ongoing performance management with the top HR  system software and HR applications; the human resource management employee gains a trustworthy environment and creates a dynamic atmosphere containing encouragement and support.

When you take your time choosing the top HR software for your hr departments, after carefully sifting through the various HR system software comparison; the employee sees the value you are creating for the company. When your human resource management employees gain superior value, they are far more likely to create further superior value back for their HR companies. This effectively increases the engagement and performance levels of your employee, in turn improving performance management.