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Performance Management Software
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Efficient Performance Management with Personio
A performance management system is an indispensable tool for companies of any size. Detailed employee assessments ensure that you are able to deploy available resources with optimal efficiency. Assessing employee performance is particularly important for defining targeted development initiatives and supporting employees in their continuing professional training.
This type of performance management system does not have to be time-consuming. By using HR and performance management software such as 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 keeping a record of specific events in between reviews. In 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 less time. Yet the benefits of a performance management software will increase cumulatively, as the more comparative data you have, the better you are able to assess your employees’ performance.
Read our article on employee assessment to find out when best to review performance, what to assess and what criteria an objective employee assessment should meet.
How to Define KPIs in Personio
Personio provides for three types of indicators to be defined 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.