To ensure productivity in the workplace, employers will often conduct a yearly review of employees' performance. The problem with the traditional year-end assessment is that it generally has little to no impact on employee behavior. 

At its best, this outdated method of feedback feels like a tedious exercise that is quickly forgotten by February. At its worst, it may create a tense work atmosphere where employees are needlessly competitive and collaboration lags. In the long term, this can hurt productivity. 

Effective performance management software vendors help promote employee engagement. It creates a company culture that matches worker output with projected goals and is regularly reviewed as part of the work process. According to Gallup, active employee engagement can result in a 240% boost in positive performance-based business outcomes.

Does this sound like a challenging management style? It can be. Fortunately, choosing the right performance management software vendor can help reduce managerial duties concerning performance review while still engaging employees. 

When looking for a vendor, remember that you are looking for the one that best matches your business model. The one that's best for you might not be newest or sleekest. What's important is that it offers features that benefit your company. Here are the primary functions you will want to consider as you search for the right vendor:

1. Identifying How Closely the Software Aligns With Your Goals

No matter what kind of business you run, you likely have some specific goals you'd like to achieve. Ideally, the performance management software you choose should help you reach these goals.

One way to determine if a performance management software vendor aligns with your goals is to review the features offered thoroughly. For example, if your goal is to reduce the amount of time your employees spend on any given task, a program that can monitor how long an employee takes to complete a project will likely be a meaningful investment for you. 

2. Monitoring and Coaching 

A good software system should track work and make it easy to mentor employees one-on-one. Regular one-on-one check-ins have also proven to be effective. Therefore, you might consider a vendor that allows you to work with employees individually and as a group. 

Additionally, at-a-glance graphics are very helpful for assessing groups engaged in a project. That's because they allow you to gauge both project completion and employee collaboration. A vendor that can readily break these analytics down into clear infographics is a worthwhile investment.

3. Rewarding Excellent Work

Behaviorism is not a theory; it is a science. While software should alert project managers about any unfinished tasks, it should also notify when an employee goes above and beyond.

Also, positive feedback is not just a matter of what you say but when you say it. As such, you should consider software that allows you to give real-time feedback. That way, managers can acknowledge good work right when they see it.

Bottom Line: Review Performance Management Software Vendors With Your Needs in Mind

Performance management software vendors may vary wildly. That said, the best vendors acknowledge your concerns and offer features that directly address these concerns. Your job when choosing a performance management partner is to find one that covers these crucial elements and meshes with your company's culture.