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Performance Management Software
Clear Goals for
for Salary and Promotion
Employee Performance Management Software with Personio
A performance management system, facilitated by performance management software, can be an indispensable tool for companies of just about any size. That’s because detailed employee assessments ensure resources are allocated and efficiency is maintained. Ultimately, assessing employee performance is especially important for defining employee development initiatives and supporting them in continued professional training.
This type of employee performance management software does not have to be time-consuming, either. By using an HR software like Personio, you can develop your own performance management indicators and define target agreements jointly with your employees as part of performance reviews.
Use digital notes for recording specific events between reviews. This way, you ensure that they are not forgotten and all of the information you need will be at your fingertips for the next review. If your target agreements are tied to bonus payments, simply enter employees’ results into Personio. The software then automatically calculates employees’ entitlements, if they meet the agreed targets, and transfers relevant data to payroll accounting.
Consistency Pays Off
Once you have standardized the processes and criteria for assessing employees’ performance and conduct, every subsequent evaluation will take far less time. Yet the benefits of an employee performance management software will increase. After all, the more comparative data you have, the better you are able to assess your employees’ performance.
How to Define KPIs in Personio
Personio provides three types of defined indicators for performance management:
- Binary indicators with two defined options, for example, ‘CPD event attended’ – yes or no
- Quantitative indicators, i.e. directly measurable indicators such as sales targets
- Qualitative indicators, i.e. not directly measurable indicators such as employee satisfaction
You are free to define whether and to what extent each KPI affects the bonus calculation for the selected period. You can enter bonuses manually in the Performance section of the employee profile, or have them calculated automatically, based on the extent to which the targets defined and stored in the Performance section have been reached.
Personio automatically adds the relevant bonus to the salary. You define when this is to be done, for example at the end of a period or at even intervals across it, on an individual basis.