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Online Performance Review System: 5 Ways It Exceeds Paper-Based Systems

Performance reviews don't have to be painful and tedious. Here are 5 ways an online performance review process can help make measurable improvements to your business outcomes.
Published 25 Sep 2021
4 min read
Online Performance Review Systems: 5 Ways It Exceeds Paper-Based Systems

It’s that “magical” time of the year – performance review time. Or online performance review time as it should be known! The HR performance review has become so unpopular that three major corporations – NAB, Deloitte and Accenture declared they were axing them. While this makes for a great headline, when you read beyond the title you will have found that these firms aren’t actually abandoning performance reviews altogether. They are just changing the way they conduct them.

These companies wanted to make sure they are getting optimal results from their staff reviews. This is something businesses of all sizes should consider.

Think about your own performance review system:

  • Do you gain quality feedback?
  • Do your managers and employees both play an active role in the process, and use data to support any discussions?
  • Does your system actually help the business set future development and performance goals that are aligned with your company’s objectives?

Upgrade your performance review process

If you answered “no” to any of these questions, it’s probably time for an upgrade. If you’re still using a paper-based system, it is also likely to be extremely painful for all concerned. It means someone (probably you) needs to spend a whole heap of time pulling out the paperwork, making appointments and sending out email chasers to managers to get the ball rolling.

But it doesn’t have to be like this. In fact, it doesn’t have to be painful at all. Here are 5 ways an online performance review process can help make measurable improvements to your business outcomes.

5 ways employee review software can help your business

1. A more effective performance review

By using online performance review systems, managers can keep a running log of notes on an employee throughout the year. This helps paint a complete picture about the individual’s performance over time – not just the immediate past, as tends to be the case with paper-based reviews.

There’s nothing quite so dispiriting for an employee than to have a mistake they made recently become the entire focus of their performance review, despite an otherwise exemplary year. Plus, it makes manager preparation so much easier – because the data is all there in the system come review time.

2. Increase goal visibility

In too many small businesses, employees are unaware of the firm’s corporate objectives and how their own goals relate to them.

By automating the areas around creating, monitoring and measuring performance against corporate goals, your managers can ensure individual goals are pinned to company-wide objectives. Plus, they can easily stay in touch with employees’ progress during every phase of goal completion. This allows managers to provide timely reinforcement or praise which is key to employee engagement, or offering coaching or mentoring to get performance back on track when it matters most.

To gauge employee engagement in your workplace, check out Employment Hero’s list of employee engagement survey questions.

3. Save time and frustration

Automating performance reviews will undoubtedly save significant amounts of time across the business. While you’ll be freed up from all the tedious paperwork, an HR online software reviews system can also minimise the frustration that managers and employees often feel.

Notifications to managers are automated which eliminates the hassle of chasing down managers to complete feedback forms. With an online system, everyone can easily log into the system when it’s convenient for them, and workflows ensure that performance review phases are completed in the right order.

4. Self-evaluations for employees

Including employee self-evaluations is an important part of the performance review process. Rather than simply receiving feedback, actively participating in the process helps employees become more engaged with the review process. But, because of its added complexity, this is one step that’s often overlooked in paper-based systems.

Automating your process eliminates this complexity, and delivers real benefits. For instance, having employees self-evaluate, allows the manager to view performance through their eyes and get the employee’s point of view. It can also help managers to better understand a team member’s strengths and weaknesses from their own perspective, all of which leads to much better outcomes.

5. Powerful reporting

When using paper-based reviews, there’s simply no way to tell how the process is progressing across the business. You can’t see how many reviews have been started or completed, so you have to rely on emails and phone calls to chase them up. Not with an online system!

You and team managers can view real-time reports on individual review status and follow up with participants electronically. This means there’s no need to hunt down incomplete reviews – it’s all done for you.

But more than this, once reviews have been completed, rather than filing them away in a drawer, an online system allows you to access the data at any time. So, you’ll be able to monitor the company’s overall progress against goals as well as track improvements in employee ratings over time.

Find out more about Employment Hero

Want more time to be strategic?

Of course, improving the quality of your performance review system is just one component in building better employee engagement. With Employment Hero’s online HR software, you can dramatically reduce the time and paperwork associated with the performance review process. By doing so, you’ll enhance employee participation and improve the quality of feedback, while you free up more of your time to focus on more strategic matters.

For more reading on HR best practices for developing greater employee engagement, download our free eBook: How to Keep Employees Engaged.

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