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Tag: Employee Performance Management System

Employee Performance Appraisal System for Small Businesses

Here in Dubai and in fact all around the UAE the small businesses often think that the employee performance appraisal systems and enterprise performance management tools are only for large businesses and big corporations, however, that is not true at all. In fact a proactive performance management strategy can significantly boost the growth of the SMEs (small and medium size enterprises). Effective performance appraisal and employee management is essential for any businesses whether small or large. The performance appraisal systems help businesses aligning their resources, employees and processes with their long term goals and strategic objectives. The employee performance appraisal system is a great tool to improve communication, employee retention and employee satisfaction. The performance appraisal systems are a great tool to boost productivity and they also serve as an early warning system and alert them to take actions and make course correction to continue the progress in the right direction.

Employee Performance Appraisal System for Small Businesses

For small businesses usually the business functions are small, sometimes a single employee is performing multiple tasks, and so on. The impact of individual employee performance is relatively larger in case of small businesses. That is why the employee performance appraisal systems is even more important for small businesses. However, most of the local and small businesses doesn’t have an employee performance appraisal system. This means all such businesses are not operating at the full operational efficiency. An employee performance appraisal system allow small businesses to set up a top down mechanism to achieve strategic objectives. The employee performance appraisal system is a framework that enable organizations to successfully implement strategies to communicate and achieve top level objectives to effectively improving daily activities of their frontline employees. For small businesses the biggest challenge is the resources and funds. Here is how a good employee performance appraisal system can improve their return over investments, reduce their expenses and increase their profitability by allowing them to intelligently manage their resources and ensure maximum outcome.

Employee Performance Appraisal System for Small Businesses

What is Employee Performance Appraisal System?

The employee performance appraisal system is a systematic approach to evaluate the ability of an employee to complete the required tasks. The employees are evaluated across different performance dimensions such as the quantity of their work, the quality of their work, the value added to the business’s goal, the financial aspects of sustaining the employees and the true cost of their service to ensure the employees are delivering what they are hired to deliver and the business is getting what it is paying for. However, all these efforts are useless until the employee is properly communicated the high-level organizational goal and objectives, and what they should do and how they should do to achieve the required performance that can contributes positively to achieving the high-level organizational goals buy achieving the individual performance goals. Doing this manually is not a simple tasks that is why the employee performance appraisal system is used by businesses to improve the performance.

What is Employee Performance Appraisal System?

What are Different Types of Employee Performance Appraisal Systems?

Earlier the businesses and organizations were following the traditional employee performance appraisal system. However, things have drastically changed in the past two decades, especially the last 10 to 15 years lead to a rapid transformation of traditional business practices and industry standards. The traditional employee performance appraisal systems were mainly manual and require a lot of resources too. Furthermore there are several loopholes and other factors which can reduce the accuracy of the results. Therefore businesses started to digitalize their performance management systems. The digitalization, automation and innovation resulted in a significant change in the results and help businesses to boost their productivity, efficiency, and profitability. Here are the types of employee performance appraisal systems:

General Appraisal

The general appraisal is a continuous communication process between the employees and the managers. The final evaluation is done at the end of the year, where manager and the employee hold a meeting to discuss and determine if the goal and objectives are met for the last year. On the bases of this meeting the manager prepare a feedback and then new goals and objectives are set for the next year.

General Appraisal

360 Degree Appraisal

The 360 Degree Appraisal is a more in-depth analysis it includes feedback from supervisor, line manager, peers, customers, cross function management, direct reports, feedback from relevant stakeholders (both internal and external) and comprehensive review of behavioral competencies. The feedback data is collected throughout the year and then it is reviewed by the manager at the time of appraisal period.

360 Degree Appraisal

Project Based Evaluation

The project based evaluation is one of the modern form of employee performance appraisal system. It boost employee engagement and keep them motivated. The evaluation is done on the bases of employee performance and contribution to a particular project. The manager or project manager gives the feedback on the bases of employee performance during the project execution process.

Project Based Evaluation

Employee Self-Assessment

Employee self-assessment is a good performance appraisal process it keeps employee motivated. The employee evaluate their performance by themselves and then the evaluation report is compared with the evaluation done by the manager. The manager held a meeting with the employee and discuss the differences and try to understand employee’s prospective which help motivating them more.

Employee Self-Assessment

Manager Performance Appraisal

The manager performance appraisal are very crucial for any business. It is the managers who are responsible of keeping the employee motivated while ensuring customer satisfaction. The manager performance appraisal is usually done by feedback from the clients, teams, and even individual employees, some are kept anonymous to prevent repercussions in future.

Manager Performance Appraisal

Sales Performance Appraisal

The goals and objectives of a salesman and sales team have huge impact on the high-level financial goals and objectives of the business. Hence their performance evaluation is very important. The sales performance appraisals is the result produced by a salesman or sales team comparing to the pre-set goals and objectives (SMART Objectives) for a certain period of the time.

Sales Performance Appraisal

Technological Performance Appraisal

The technological performance appraisal is also a modern form of performance management. The individual employees are evaluated for their technical proficiency and understanding. These days the since most of the regular business functions and operations are heavily digitalized and the technology keeps evolving, so technical know-how has been given high importance along with other competencies.

Technological Performance Appraisal

These are the most common employee performance appraisal methods. A small business or medium size enterprise can implement several methods to monitor and boost its performance. For large corporations and big businesses the impact of individual performance is not so strong. However, small businesses might only have one or two salesman, maybe only one accountant and one or two administrative staff along with junior level workforce and staff. So, for such businesses poor performance from the accountant could put the entire business in murky waters. Hence the employee performance appraisal system and active performance management is extremely crucial for long term success and profitability.

What is Employee Performance Appraisal Cycle?

The employee performance appraisal cycle or performance management cycle is based on four stages. These stages start with setting up goals and objectives, developing strategies and making plans and then closely monitor the performance and progress through the execution of those plans and at the end employee development and rewarding process. Here are the four stages of employee performance appraisal cycle or performance management cycle:

  1. Planning
  2. Monitoring
  3. Reviewing
  4. Rating & Rewards

The planning is the very first step any small business will have to take. The manager, owner or stakeholders determine the high-level business goals. On the bases of these goals the managers set goals for individuals, different teams and business functions. For employee goals and objectives the managers should apply the SMART Framework, where the S stands for Smart, M for measureable, A for achievable, R for relevance and results, and T stands for time-bound.

What is Employee Performance Appraisal Cycle?

The continuous and pro-active monitoring is a key to success. Traditionally managers and supervisors don’t follow up much frequently, however, that makes the entire employee performance appraisal process ineffective and businesses couldn’t get desired results. That is why continuous monitoring and more frequent (monthly) follow ups are important, especially for small businesses and medium sized enterprises. The reviewing is also a very important stage in employee performance appraisal cycle. The review provide comprehensive data on employee performance and what factors are impacting their performance in positive and negative sides of the pre-set requirement. It also highlight the areas of improvements. The final step is rating and reward process.

What is Employee Performance Appraisal Cycle?

The small businesses or even any size or kind of businesses must have a fair rating and reward process. The employee who underachieve should be warned, or trained or even terminated if necessary and the achiever or over-achiever should be awarded fairly. This increase the morals of the employees and overall workforce and encourage them to perform better in the next employee performance appraisal cycle.

What is Employee Performance Appraisal Software?

An employee performance appraisal software is a technological solution to streamline the performance management processfor businesses. The small businesses and medium size enterprises always have limited resources. The employee performance appraisal software is very easy to operate and it automates maximum performance management tasks. It provides a centralized dashboard and enable the management to continuously observe the performance. It automatically collects employee performance data and offer various modernized features which not only make performance management easier but more effective. The performance management software can help businesses implementing various employee appraisal methods and provide in-built data analytical tools which make analysis easier and improve the accuracy of the process. It increase employee engagement, save time and efforts, and improve communication between the employees and the management which are crucial for achieving better performance.

What is Employee Performance Appraisal Software?

Why Small Businesses Need an Employee Performance Appraisal System?

The employee performance appraisal system can be game changer for small businesses and medium sized enterprises. For every small businesses the biggest goal is to grow and scale over the time. For a long term growth a business needs a long term strategy and plan to maintain a certain level of performance, productivity and profitability. It is a very common belief that in order to raise the quality and quantity of the work a businesses must have to increase resources which means more expense. For a small business investing too much of its hard-earned cash into expanding team and operation is not always an option. However, a good employee performance appraisal system or performance management system can significantly boost the capabilities of the workforce which means more high quality work can be done without raising your investments or expense. Here are some key benefits of utilizing an employee performance appraisal system to streamline the growth of a small business.

Employee Performance Appraisal System: Boosts Morale

Let us admit, everyone likes being praised at work. If my boss highlight some of my achievement in an internal meeting, I will feel proud. This will raise my morale and it will make me more passionate about my work and performance. An employee performance appraisal system provides a framework to document and formalize admirations and praises. This not only impact on the individual employee who is being praised, but it also inspires others to perform well. Everyone like being recognized for their efforts. The fair recognition not only help boosting the morale of the employee but it also impact on the entire team, if people knows that whoever will genuinely perform well will be praised and recognized, they do well. When someone is awarded with adequate credit to their efforts they feel happy and satisfied. It improve employee retention and happy employees tend to perform well.

Employee Performance Appraisal System: Boosts Morale

Employee Performance Appraisal System: Increase Employee Retention

Employee retention is crucial for a small business. Hiring a new employee, letting them integrate in the team and investing precious resources on them and then losing them could cost a lot to a small business. It also impact on the other team members and it impacts on the overall organizational culture of the business. Higher employee turnover could cost a lot of resources, time and lose of work also. That is why the employee retention is much more important for the small businesses. The employee satisfaction and happiness is a key to employee retention. Several independent studies and market experts suggests that employee can perform well and be loyal to the employer even if they believe they are earning less, if and only if they are happy and satisfied.

Employee Performance Appraisal System: Increase Employee Retention

The employee performance appraisal system increase communication between the employees and the managers, it provide a framework for recognition and appreciation which help managers to resolve any problem their employees might be facing. When the employees are being heard, their problems and complaints are taken seriously they become more loyal and satisfied.

Employee Performance Appraisal System:Highlights Training Needs & Sets Career Path

The employee performance appraisal system provide in-depth insight of employee’s skillset. Regular and more frequent reviews and discussions enable managers to understand the capabilities of the employees and also highlight their flaws. Fluid communication and providing a forum to employee to better express themselves which helps managers understanding the employee and it also enable them to identify any needs for the training before even it start impacting the productivity and performance. In the modern world the technological advancements and changes in the market trends are more often which means the business must have to keep improving its workforce all the time. The frequent discussion whether formal or informal among the employees and the managers can help identifying any shortcoming and future requirements.

Employee Performance Appraisal System:Highlights Training Needs & Sets Career Path

Furthermore it clarifies the career paths for the employees and make them more passionate about their work. Which boost their morale and provide them a sense of purpose and a goal within the organization which also reduce employee turnover. When the managers are well aware of the technical and behavioral competencies of their employees, they can chose right candidate for the promotion which helps improving the performance and productivity and also boost morale of the employees.

Employee Performance Appraisal System:Higher Employee Autonomy

The biggest advantage of an employee performance appraisal system is that is simplify the communication between the employee and the manager, this enables businesses to clearly communicate the high-level organization goals to the employee. Which help setting up clear individual goals and objectives and set clear expectations from the employees while providing them complete understanding of their contribution in the high-level business goals. Hence the employee and the mangers can make better plans which increase achievements of strategic objectives and result in a better overall performance. This also boost employee’s morale by proving them more freedom in making their own decisions which results in more commitment, productivity, loyalty and satisfaction. More frequent reviews and communication ensures employee satisfaction and provide managers a chance to quickly solve problems, resolve disputes and remove obstacles from the business processes. Freedom, trust, and loyalty drives innovation and fosters a culture of growth and productivity.

Employee Performance Appraisal System:Higher Employee Autonomy

Employee Performance Appraisal System: Rewards, Recognition and Accountability

The employee performance appraisal system sets clear path for reward and recognition programs. It ensures fair process and reduce employee complains, in fact it help gaining their trust. For any organization whether a small business or large enterprise a healthy and productive environment is a key to growth and success. When the employees are passionate, satisfied and committed to their objectives the business can achieve the high-level goals and objectives. Where the rewards and recognitions are important the accountability is also crucial. Awards and recognition is for achievers and over-achievers however the accountability is for the under-achievers. Usually here in Dubai and all around the UAE the employees think that the accountability promotes a culture of blaming, however, that is not true at all. In reality a fair and effective accountability is absolutely necessary to explain the business goals, objectives, mission and vision to the employees and it clearly communicates the role of individual employee and the expectation from them in order to meet those goals and objectives. Which inspire passion, commitment and personal growth amongst the employees and boost their performance.

Employee Performance Appraisal System: Rewards, Recognition and Accountability

Employee Performance Appraisal System: Raise Profitability and Boost Growth

Every small business in Dubai or anywhere in the UAE or even in the world would want to raise their profitability and boost their growth. That is the most natural goal of any small or large business. However, for smaller businesses the journey is slightly different. Each businesses have its own niche, category or industry, however, everyone wants to grow. An employee performance appraisal system can play a crucial role in ensuring long term growth. The growth lies in customer satisfaction and quality of work a business delivers to the market. These both factors fully rely on the employee performance unless you owns a fully automatic machine which take raw material in and produce 100% perfect product from the other end, which is a nice fictional story but in reality that is not possible. As a business can’t survive without satisfied customers similarly a business can’t operate without a proper workforce. The employee satisfaction and happiness is equally important, it ensures good quality work and great services for the customers which makes them happy and satisfied.

Employee Performance Appraisal System: Raise Profitability and Boost Growth

Improving employee performance, keep them motivated and passionate about their work and gradually improving their skillset and capabilities is what drives success. An employee performance appraisal system is all about it. It help businesses communicate with its employees, it provide an intuitive framework of feedbacks and it help businesses identify the areas of improvements. The employee performance appraisal system doesn’t only help improving employee efficiency, performance and competencies but it also help improving the managers and eve higher staff as well. The employee performance appraisal system help businesses optimize efficiency and performance at every single bit of their organization. Which optimize cost and expense, enable employees to deliver more, improve quality and ensures happy and satisfied customers. Collectively it help businesses generate more sales, profits and grow on a continuous pace.

Employee Performance Appraisal System: Raise Profitability and Boost Growth

Conclusion

The purpose of this blog was to provide our customers and audience a basic understanding of employee performance appraisal system. I tried to highlight its importance for the small businesses. All small businesses and medium sized enterprises in Dubai or anywhere in UAE can leverage the employee performance management system to boost their growth and profits. The main objective of deploying a performance management software is to boost employee performance, increase their satisfaction and loyalty and to maximize their output. Quality work and efficient workforce results in happy and satisfied customers. Which are a key to long term success. Small businesses need higher customer retention in order to grow. Studies have revealed that acquiring a new customer could be 5 to 25 times more expensive from selling to an existing customer. Poor quality products and sloppy services repel your customers and make it even more expensive to build a good brand reputation that attracts customers.

That is why for small businesses and medium sized enterprises an efficient and effective employee performance appraisal system is absolutely crucial to achieve long term goals and to sustain growth. RSI Concepts is a leading custom software development company in Dubai, UAE. If you want to learn more about the subject or if you want us to build a custom, cost-efficient and very effective employee performance appraisal system or performance management system for your business. Please feel free to contact us through our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.

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How the HR should select a Performance Management System?

How the HR should select a Performance Management System

For any business the human resource is considered to be the backbone of the business. The HR is responsible for hiring skilled staff. The HR is also responsible for employee retention and employee happiness. Job satisfaction is a very positive factor and can boost one’s performance by many times. Here in Dubai and all around the UAE the market is very competitive, the customers are also very savvy and there are other challenges too which makes it extremely crucial to make your employees productive and efficient. For that businesses uses multiple methods and tactics, most of the businesses use a performance management system. The main reason to use a performance management system is to measure and evaluate the employee performance and their impact on the high-level organizational objectives and goals. Basically the performance management system is used to make sure all the employees and departments are working in the right direction to achieve the high-level organizational goals and objectives.

How the HR should select a Performance Management System

The continuous performance monitoring and evaluation also help encouraging employees to perform well. The performance management system is also used to improve employee’s capabilities. It helps HR in many ways and it enable businesses to implement employee development programs which help them improving their employees’ professional skills and capabilities. The performance management system is also a great tool to understand the strengths and weaknesses of the employees which help businesses in effective and efficient resource planning and management. All these benefits can help businesses and organizations in achieving their goals and objectives and maximize the productivity and profitability of the business.

When it comes to implementing a performance management system there are several options available in the market. Here in Dubai and all around the UAE the off-the-shelf and ready-made solutions are in abundance which also makes it difficult for the HR to decide which system they should acquire. Obviously each business have different needs and plans, so in this blog we will discuss how the HR should choose the right system for their needs.

What is a Performance Management System?

A performance management system is mainly a software which have in-built features that allow the businesses and organizations to execute the performance management tasks and strategy. There are two major parts of performance management. First part is called performance management system which is drawing a roadmap to achieve the goals. The second part is performance appraisal system which is basically measuring the performance and progress of each individual employee, teams, departments and management with the reference to the high-level organizational goals and objectives. Although most of the time the performance management system and the appraisal management system are interchanged and referred to as the performance management system only.

What is a Performance Management System?

The performance management system software can be hosted on cloud, online hosting or in local/in-premises data centers. The system is interlinked with the central information center as well as all necessary systems and tools via API based integration which enables it to synchronize, update and push data to and from other systems.

Here are a few important things that the HR should consider while selecting a performance management system:

Performance Management System Software Technology and Platform

For any performance management system the software technology and the platform is crucial as it will not only support businesses with customization and scalability but it also have huge impact on the cost. The performance management system must be built on a widely available technology. Hence the changes or customization should be easy. These days many performance management systems are utilizing open-source programing platforms which is very cost-efficient and easy to customize. Furthermore the performance management system should be able to provide easy and cost-efficient scalability. The performance management system’s software consists of user interfaces (UIs) and a core server application.

Performance Management System Software Technology and Platform

The server application is where all the source code and algorithms are stored and executed. Hence the software platform should be able to support multiple server technologies such as online hosting, cloud hosting, local or in-premises hosting solutions. This will enable the business to choose appropriate solution as per their convenient and doesn’t put extra strain on the expense by forcing them to opt for a particular hosting technology.

Exclusive and Intuitive User Interfaces (UIs)

For performance management system or in fact for any system it is extremely crucial that the users are able to use it without any trouble. The intuitiveness and simplicity improves user experience which improves the overall efficiency and efficacy of the system. For the performance management system as it should be utilized by different all of the employees who all have different level of IT proficiency and computer knowledge, so the user interfaces should be designed to keep the users in mind. In a standard performance management system there are several different types of user interfaces which are all designed for different user groups, for example the user interface (UI) for the employee would be very different from the user interface for the CEO or the top level executives.

Exclusive and Intuitive User Interfaces (UIs)

That is why it is extremely important that the user interface is easy to understand and intuitive. In some cases if training is required then the training should be provided to the staff. An employee or even a manager can only get the full benefits of the performance management system if they could use it easily.

Flexible Goals and Objectives Implementation

This is the most important part of any performance management system. The performance management system must have to be very flexible and user-friendly to enable the users to easily set goals and objectives in the system. At every managerial hierarchy till the individual employees the system administration (which is top level management) should be able to transmit the goals and objectives. In-built features should allow the board of directors and senior management to communicate the high-level organizational goals and objectives with the head of departments, directors, etc. and then they should be able to communicate those goals to their respective teams. For example the director operations should be able to set goals of the managers from the department and then they can do the same for the next level of employees and then the line managers, supervisors, etc. and at last the individual employees. This should be available for all business functions.

Flexible Goals and Objectives Implementation

In this way the high-level organizational goals and objectives can be effectively communicated to everyone in the chain and businesses can get better results. Furthermore a good performance management system always encourage inputs and feedbacks from the individual employees and lower level management, which help them understand the goals much better and when employee have their say in planning and strategic affairs they feel more compassionate about their work and become more loyal with their employer. This can help improving their performance too.

Strong Monitoring Tools and Dynamic Strategy Implementation Approach

Most of the time the high-level organizational goals and objectives never changed, they remain same for the entire year. However, due to unplanned and unforeseen circumstances the individual goals and plan of action can be changed to remain on course for the high-level organizational goals. This requires continuous monitoring of the performance and the progress. A good performance management system should be very flexible towards implementing strategy and plans. It should provide continuous performance data to the managers and supervisors and let them change or amend the goals at any time. This course correction help them dealing with unforeseen events, interruptions and unplanned events.

Strong Monitoring Tools and Dynamic Strategy Implementation Approach

Another upside is that it also provide continuous performance data to the employees as well and provide them with a chance to improve their performance to reach their goals and objectives. Furthermore it also estimate the impact of the individual performance on the overall performance of the team, department and the organization as well. Which also help encouraging the employees to perform well and it gives them a sense of importance which is good to improve employee loyalty and employee retention.

Continuous Employee Feedback

For any performance and appraisal management system the employee feedback is absolutely essential. It provides management a chance to evaluate the employees in a more accurate and better way and it also help reducing the communication barrier which is usually present among the junior employees and the management. The performance management system should have a dedicated in-built module for the employee feedback management. Where the managers should have ability to schedule one-on-one feedback sessions for any of their subordinate and also the manager who will be conducting the feedback session. The performance management system should also include online feedback features to conduct online surveys and feedbacks.

Continuous Employee Feedback

Furthermore the peer-to-peer, top-to-bottom and bottom-to-top feedback collection mechanisms should be available. These features can become very handy for the HR department and they also help understanding the problems and issues of the employees in greater depths.

Employee Appraisal Management & Reward Modules

The employee appraisal management is a very crucial part of the performance management. The employee appraisal is basically their performance during a particular time period. The employee appraisal management modules measure the employee performance on the bases of their progress towards the objectives, goals, and their contribution in the overall organizational goals and objectives. The appraisal management is the key component that is used to align all organizational resources with the high-level organizational goals and keep everyone on track to ensure the high-level goals and objectives will be achieved. The management by objectives is a modern appraisal method that involves employees in goal setting and strategy building process. Furthermore there are other methods too such as behaviorally anchored performance scales, 360 degree feedback, straight ranking appraisal, accounting appraisals, etc. and many more.

Employee Appraisal Management & Reward Modules

A good performance management system should not only support all these methods but it should also be able to allow the management to customize and configure their own methods and techniques. The appraisals play a crucial role in improving the overall productivity and profitability of the business. On the bases of the performance evaluation the performance management system should also help businesses to implement an effective reward program. The reward program help businesses in improving employee’s morals, encouraging them to perform even better in future. Furthermore the performance management system can provide accurate data on technical and behavioral competencies which help businesses to setup and plan training programs and it also help them in measuring the effects of the trainings and skill enhancement programs. This help HR to improve the overall operational and professional capabilities of the entire workforce.

Employee Appraisal Management & Reward Modules

KPIs, OKRs, KRAs, and other Matrices

The performance management system have in-built performance measuring matrices. These matrices are used to track, monitor and measure the performance of the entire business along with all its business units, departments, teams, and employees. The KPIs are Key Performance Indicators which are used to measure the performance of the individual employees, teams, departments, and even the entire business. The KPIs are used to communicate what is needed from an employee and quantify their work to assess the performance. While the KRAs or Key Result/Responsibility Areas are matrices that are used to measure the employee performance in terms of the expectations from their job role. Majorly the KRAs are used to clearly communicate the job role of the employees and give them a perspective of what the business is expecting from them and what should be their contribution.

KPIs, OKRs, KRAs, and other Matrices

The OKRs means Objectives and Key Results and it is a fairly new performance management method. The OKRs are reviewed more frequently (usually at the end of each quarter) and they are transparent both horizontally and vertically. The OKRs are different from KPIs as the KPIs provide the measure of the effectiveness of the existing processes, the OKRs mainly address the change and growth and it measures how far a business have progressed in in a certain time period in pursuit of their goals and objectives. These are some matrices that any good performance management system should have. These matrices and a lot many more such matrices improve the efficacy of the performance management system.

KPIs, OKRs, KRAs, and other Matrices

Performance Management System with Remote Access Enabled

A good performance management system must also have capabilities to provide access to the employees remotely if needed. These days in general our dependence on the smartphones and mobile devices is increasing.  In fact most of the people use their mobile devices as their primary device to access the internet and do regular tasks. Furthermore businesses in Dubai and all around the UAE usually have many branches and most of the time employees are deployed off-campus or at project sites. This means that all of the employees wouldn’t have access to the computer or they won’t be able to come to the head-office to access their performance management system dashboard. Sometimes the higher management and stockholders also want to access the system from remote locations such as if they are at home, or at a business trip or if anything urgent came up while they are not at the office, etc.

Performance Management System with Remote Access Enabled

That is why having the facility to provide remote access via mobile and smartphones could be a great advantage. Businesses can also integrate special purpose interactive kiosks with the system which can provide access to the performance management system from remote locations and make it possible for all employees to access their dashboard any time and from anywhere. Such features are very helpful in improving the effectiveness of the system and help businesses improve their performance in all sectors.

Performance Management System Cost – Customized VS Off-the-shelf Solution

Obviously the cost is one of the major factor. Whenever a business planned to acquire a new system or tool the cost is always an important anchor point. The ROI is calculated on the bases of the cost and the returns a business gets from the software or system. There are two types of performance management systems on the bases of their cost and usage agreements. Some companies are providing ready-made or off-the-shelf performance management systems which can be acquired on the rental bases or at different subscription plans. In both cases the scalability is expensive and the business must have to pay for the plan or package they have opted for. Usually these plans and packages are designed for general purpose hence most of the businesses end up paying for unwanted features and tools as well.

Performance Management System Cost – Customized VS Off-the-shelf Solution

The data is stored in the service provider’s storage and business have no control over it. Another big disadvantage of off-the-shelf solutions is that they are hard to customize and sometimes businesses have to wait for a long time to see the new features in the updates. If any customization is done, it remains limited and it is also very expensive and in some cases it is not permitted at all.On the contrary the custom-build performance management systems provide full control and freedom. The business usually acquired a software development company like RSI Concepts or they hired a team of programmers and developers. In any case the business have full ownership rights over the software and it’s all resources. This make scalability a non-issue and business can include as many employees, departments, branches and everything whenever needed without paying hefty charges or upgrading fees.

Performance Management System Cost – Customized VS Off-the-shelf Solution

Furthermore the full ownership frees the business from dependency on a single vendor and businesses can move to a new vendor or service provider without losing anything or going through the migration problems. This make customized performance management systems more superior and cost-efficient. In the long term the cost to benefits rates are excellent and the business have more control and freedom over their performance management system.

Conclusion

The performance management system is a very critical component of any business’s management. Businesses use a digital performance management system to plan and execute strategies as per their goals and vision. However, when it comes to selecting an appropriate performance management system the HR department had to be very careful. The performance management system could have a significant and long term impact on the business’s growth and productivity. In this blog we have listed some basic features which will help the HR department to choose the best solution for their performance management needs. A performance management system help businesses to set realistic goals and help them implementing strategies to achieve those goals. It significantly improves communication.

The performance management system also help employees’ in understanding their job roles, the expectations from them and the importance of their contribution in the overall high-level organizational goals and objectives. The feedback and planning tools help businesses including the employees in planning and strategy building phases which increase their trust and improve their relationship with the business.A performance management system is absolutely necessary for any business. Each business grows, some grow faster and some at a slower pace but eventually each business grows and their internal business processes become more complex and sophisticated. A performance management system ensures the business sustain that growth and with the growth it also improves it workforce, operational capabilities while ensuring higher productivity and performance.

RSI Concepts is a leading performance management system provider in Dubai, UAE. If you want to learn more about the subject or if you need our help to provide you a high-quality performance management system, please feel free to contact us through our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.

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Why Performance Management System is a Necessity for Companies in Dubai

Why Performance Management System is a Necessity for Companies in Dubai

The performance management system is absolutely necessary for businesses, enterprises and companies in Dubai, UAE. We all are aware that the economy is restoring from the pandemic, the market is getting competitive, the market trends and customer behavior got changed. Huge changes have to be made in business processes and practices to compete in the new environment. This is what makes employee performance more critically important for your growth. In Dubai and all around the UAE the economy is growing on a very fast pace, new competitors are popping up every day. The country is a major market in the entire MENA region and also in the Central Asia. Competition always raise the quality and standards. The customers and more aware and more demanding than anywhere else, which is why it is crucial for a business that their employees and the entire infrastructure works perfectly to sustain growth. The customer experience, customer satisfaction and customer retention all directly impacted by the employee performance. The quality of product and services doesn’t only rely on the infrastructure and high-tech machinery, in fact the employees who are operating and utilizing those should also have to perform good to ensure the ultimate quality of products and services.

Check Out: Why Organizations need Performance Appraisal System in UAE

A performance management system is a systematic framework for continuous performance measurement, which is achieved by allocating the manpower, resources and setting up priorities which are aligned with the goals and objectives of the company. It is a great help and support for the HR department as well. The HR department can easily track KPIs (key performance indicators) and carry out behavioral assessment for the employees to not only identify the areas of improvement but to also help employee development. A performance management system encourages the employees to perform well and increase their potential, work quality and competitiveness which results in good quality work and better performance. Mostly the business owner, higher management and the HR managers are heavily relying on the performance management system to increase and ensure profitability and growth.

Here are some reasons that why a performance management system is a necessity for companies in Dubai, UAE:

Performance Management System’s Benefits for the Company

Performance Management System’s Benefits for the Company

The companies and organizations can have so many competitive advantages by implementing an efficient performance management systems. The biggest advantage is that the companies and organizations can easily monitor and improve the performance of different departments. The overall performance of the department is dependent on the individual performance of all the entities that are making that particular department, now in some scenarios some entities may overlap other departments too in such case their overall performance and contribution to each department should be analyzed and then the decisions should be taken to improve the performance by keeping in mind the effects of those decisions on the other departments too. An effective performance management system helps companies and organizations to efficiently manage resources to maximize the output. This increase the profitability of the business and help in maintaining and attaining growth.

Companies and businesses can easily monitor and track the performance of various departments, teams and individual, this help them assessing various levels of the organization. This analysis is also very helpful in making decisions and planning to allocate resources and align key players with the organizational goals and objectives. The data captured through a performance management system can provide precise and very accurate analysis of gaps and deficiencies in the departments, teams and individual employees. The business/company can easily make policies and assign resources to fill these gaps to maximize the productivity and profitability. This is a great help for resource management and cost cut. Once the company evaluate all the resources in hand and knows their capabilities then it can easily assign appropriate and adequate resources for a particular task or objective, this way businesses can achieve more by investing less resources.

If the company is able to allocate and manage resources with maximum efficiency this will impact the overall performance and progress of the organizations. For example the production team can perform well and ensure highest quality of the products. The customer service department can promise higher customer happiness and satisfaction, which consequently leads to higher customer retention and loyalty. The loyal customers help business to grow further with less efforts by advocating the brand and by promoting a positive brand image. The brand identity plays an important role in growth and profitability. Collectively all these efforts will result in higher customer loyalty and higher conversion rates, which will definitely help sustaining a continuous growth. Effective resource management ensures efficiency which reduce the cost and increase the quality which results in higher profitability.

Performance Management System’s Benefits for the Management

Performance Management System’s Benefits for the Management

The biggest hurdle any executive level and lower level management reports is the communication barriers, poorly performing accountability methods, poor resource allocation and inefficiency costing management. A performance management system can help in tackling all these problems. It is always hard for the managers to communicate the assessment criteria and protocols to the employees and on the other hand the employee also report that they don’t understand the appraisals very well. However with a performance management system the employees can easily understand and view the criteria and methods for the assessment, which encourages them to work in the right directions to boost their performance. The employees can also track their own performance continuously and also on regular intervals, this is also very helpful in raising their morals and boosting their efficiency. As the performance management system capture data from various touch points and can have so many different types of indicators which are all automatically analyzed by the system so the accountability methods become more accurate and efficient.One of the primary task of any performance management system is to accurately assess and judge the employees to identify their weaknesses and strengths. If an employee is performing well when he was working on a particular work station or in a particular team or unit, then that means they are the right fit for that particular gig.

For example if an employee perform very well while assembling electrical panels for transformers when assigned within a particular team and the same employee perform poorly when assigned to assemble the electrical panels for the generators with the same team, that mean that particular employee’s strength is working at transformer’s electrical panels. That kind of comparisons are very helpful in evaluating the employees and improving their performance. This also highlight that the employee might require more training for the generator’s electrical panels. When an employee is assigned for a job they are good at, they will do more work and their work quality will be better. However, if an employee is assigned a tasks which they are not performing well whereas the same employee perform better on other assignments, that means if the employee will be assigned to the work they are not good at, the work quality will be decreased and the business might have to assign more personals to finish the job in timely manners. This is how a performance management system can be very helpful in reducing the cost and improving efficiency.

Moreover if the employee perform well they will not only reduce the cost by their increased efficiency but in fact they will also produce quality work, your customer service will get better and much more. These things directly impact the customer experience and customer satisfaction. Happy and satisfied customers are tend to be more loyal towards the brand, and they also help promoting a positive brand identity. A positive image in the market attracts more customers and help business grow exponentially. Similarly the happy and satisfied employees tend to stick with their employer for long, the company can have a very skilled staff and employees who have sufficient experience and mastery of their respective fields. Which further empowers the business and let the company build a stable platform with higher employee retention and higher customer retention the growth could be very sustainable and long term.

Performance Management System’s Benefits for the Employees

Performance Management System’s Benefits for the Employees

 

A performance management system is very helpful and beneficial for the employee. It reduce the uncertainty and ambiguities. The communication got better with the employer, the employees can easily and clearly understand their capabilities and can also do self-assessment. The businesses can easily convey their expectations to the employees and the employee can easily compare themselves with those expectations and start trying to improve themselves to meet those expectations. The self-assessment and a clear goal has a very positive influence on the employees and it encourages them to do self-improvements and it also highlights the strengths and weaknesses of the employees which is again very beneficial for the personal development of the employees. The employee can request for certain trainings or in fact the management can also arrange adequate trainings for the employees, which eventually also improve the skills and capabilities of the employees and provide them an environment where they can grow too.

Another great advantage of the performance management system is that it can very accurately measure the employee performance under different scenarios. For example if an employee is more productive under tough conditions or is not hardened enough. If the employee perform better with one team and perform not so good when assigned with another team and so on and so forth. Such data is very beneficial for the employees and the management too. The management can rely on this data and then they can assign the employee to the teams or environments where they perform well or they can also dig deep to understand the cause of poor performance under certain circumstances and then take actions to rectify this. The self-assessment and such details can also define a clear career path for the employees which is very beneficial for both the employees and the company too. The company can have a set of experts and qualified employees and employee will get the benefits of the training and experience which will groom them to be able to progress and grow personally.

The employee performance system also very helpful in reducing the conflicts, issues and other management related problems, for example if an employee is performing well but his team or the overall department is not doing so good, in that case that employee will have more confidence that they will be applauded for their good work and their efforts will still be recognized and acknowledged. This boosts the morale of an employee and encourage them to consistently showing good performance. As all the evaluation and judgment is done through a systematic approach so no employee will think about favoritism or discrimination and the overall work environment will get better.

Performance Management System’s Benefits for the HR Department

Performance Management System’s Benefits for the HR Department

 

The HR department can take many advantages from using a performance management system. One of the biggest advantage is that it provides very accurate and precise measurement of any employee’s capabilities and weaknesses. It motivates employees and encourage them for innovation and improvements. Most of the time the employee always have concerns about the evaluation process but with the help of a performance management system and it also enables a better communication channel as well. The HR department also got a better platform to accurately evaluate employees and on the bases of evaluation they can easily make decisions related to employee promotion, demotion, dismissal or transfer and such. This also help HR to support employees who are facing problems and improve employee trust and happiness. The HR department also have to ensure that all skilled staff and required human resource is available whenever needed. By evaluating the employees and their capabilities the HR department can easily make decisions for new recruitments and hiring.

Most of the long-term strategy planning required performance management data and inputs. The performance management system is very helpful for HR strategic planning for long-term human resource and workforce. Another great advantage to the HR is that the employee performance management system significantly enhances the employee experience, facilitate them and increase the level of their satisfaction. Once an employee is happy and satisfied with the company they will most likely remain working with the business. The employee retention will be improved. A well-trained employees and experienced workforce is a very precious asset of a business, a company can’t grow without having a reliable and efficient workforce. Employee retention also attract more talent and secure the investments of the company that the business made in regard to training and compensations for the employees.

The performance management system also help in reducing common evaluation errors. Sometimes the managers are reluctant to judge someone or hesitant while passing any negative feedback amid the consequences of their feedback on the employee. In most cases the managers do not remember the old ratings or history and their rating is based on the very recent events. There are certain scenarios where the managers or supervisors rate an employee either very good or very bad on the bases of only their high competency or incompetency in only a particular area whereas the employee is very balanced and good on so many other tasks as well. Sometimes there is negligence at the manager’s side and they failed to collect required information to rate an employee, sometimes the managers are biased and show favoritism which also reduce the accuracy of their feedback. With the help of the performance management system the HR department can easily identify such problems and take actions or plan training for the raters to improve their overall appraisal capabilities.

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Conclusion

A performance management system is a necessity for companies in Dubai and all across the UAE. It is extremely important for a business to utilize their resources at maximum potential either human resource or otherwise. The performance management system not only measure the KPIs and performances of the individual employees, but it can evaluate and assess the individuals, teams, departments, business units and multiple level of hierarches. The business can gain a huge competitive advantage by simply utilizing the resources in hand with efficiency. There are certain factors that results in under-utilization or mismanagement of the resources. All such factors can easily be identified and rectified using a performance management system. The performance management system help business and management in improving communication, building trust and accurately evaluating the capabilities of the employees. The HR department can easily identify the strengths and weaknesses of the employees and take actions to make sure the company always have a skilled and professional workforce.

The performance management system also help the employees to communicate better with the employer, they can also evaluate themselves and there are so many other factors that encourages the employees to do self-assessments and improve themselves to support the organizational goals and objectives. The employee can set their personal goals which synchronize with the organizational goals and the management can evaluate each resource to determine whether it is in-line with the organizational goals or not. This way businesses can improve their profitability and efficiency. RSI Concepts is a leading Performance Management System providers in Dubai, UAE. If you need a performance management system or seeking a customized performance management system for your specific needs, feel free to get in touch with us. You can reach us through our Contact Us page.

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How a KPI Software can help provide better Customer Journey?

How a KPI Software can help provide better Customer Journey

The customer journey and customer experience play a critical role in any business’s customer retention capabilities, brand reputation, and growth. How a KPI software can help provide a better customer journey? Well, a customer journey is not very simple and easy to measure a thing, in fact, it is a very complex phenomenon. The easiest way is to identify different phases of the customer journey and then for each phase measure the KPIs or key performance indicators. This way you can easily identify your strong and weak points and then take decisions to further rectify your weaknesses. Once everything is in place, you can easily monitor and tweak your entire customer journey with a more effective strategy and far efficient approach. The KPI software is built specifically for analysis and data collection. The key here is that not all KPI software is capable enough to present all the data in actionable reports. With our KPI Software tool, you can easily gather vital business intelligence to streamline and improve your processes involving customer journey with more ease and precision.

Here is how a KPI software can help provide a better customer journey:

Measure Customer Lifetime Score to Improve Customer Retention

Measure Customer Lifetime Score to Improve Customer Retention

Customer Lifetime Score helps you understand the lifecycle of a customer. It is not easy to retain an existing customer along with struggling to get more. This KPI could be in a broader perspective a result of multiple other KPIs. The data can be sourced from different information centres and then analyzed and compiled to measure the customer lifetime score or value. This will provide you a better understanding of your customer retention and returning customers. The data can be utilized and compared with the existing customers and further analysis can be done to understand why customers are not returning back or how the customer lifetime score/value can be improved to improve customer retention.

Measure Direct Traffic and Improve Marketing Strategies

Measure Direct Traffic and Improve Marketing Strategies

Measuring direct traffic is very important. It will show you how effective your marketing strategies are. In order to increase your sales and leads, a business should always have to pursue their customers either by advertisements, digital marketing, social media, email marketing or any other method of marketing. These are very precise and measurable actions hence they should have a measurable reaction. In our case, the reaction will be the traffic coming to your website. These KPIs should help organizations in improving their marketing strategies which will increase the number of leads and conversions.

For example, your customers are coming to your branches and offices or locations. You should be able to measure their quantity and then the conversion rate as well. This will help you understand the branch’s performance which could be further improved by other relevant KPIs.

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Measure On-Site Time and Improve Customer Experience

Measure On-Site Time and Improve Customer Experience

In the case of website and digital marketing, we need a customer to spend more time on the site which is the website. In the case of branch visits or office visits, we want our customers to spend less time on the branch to get a service done. In both scenarios, you will understand how you can improve your customer’s journey to an extent where you can also get optimum numbers of leads and sales. For example, if people are spending a good amount of time on your website that is good it means your website is engaging and people are reading it. Which shows a good customer journey and higher rates of conversion.

If visitors are spending more time at your branch or office that means the server staff is taking more time, or the queues are not managed properly which is worsening the customer experience and customer journey. And it is very bad, immediate actions should be taken to rectify this issue.

See More: How Queue Management System Helps to Provide Better Customer Service

Measure Customer Effort Score and Improve Customer Journey

Measure Customer Effort Score and Improve Customer Journey

Customer effort score is very valuable data. It has to be monitored and measured. The KPI Software enables you to measure the inputs from the different sources and accumulate them into a unified report or analysis which can help the management to take actions in the right direction to improve the customer journey. For example, you should know how much average time is consumed by your call centre to solve an issue over the phone, or to provide support? How much time is required for the prospect to enquire through a phone and get the required information? Similarly for the website, no one wants to read ten or twenty pages to get the required information, if the required information is not available in a few clicks the visitor will simply close your webpage.

This data can be collected and analyzed effectively to reach a conclusion to take steps to improve the customer journey. The best method is to utilize KPI software. Not only call or website, but visits at the branch and all other touchpoints should be scanned to gather as much data as possible. These KPIs will help you evaluate your existing strategies and also point you to the directions for improvements in the customer journey.

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Measure Customer Feedback and Satisfaction

Measure Customer Feedback and Satisfaction

Measuring direct customer feedback and taking their suggestions or feedback is a great way to measure customer satisfaction which is directly impacted by the customer journey. If the customer journey is better the customer satisfaction will be higher. A happiness meter can be placed in all strategic points to collect as much feedback as possible. The happiness meter or score scales can be published on the website, shared by the emails, SMS and social media as well to encourage more customers to share their opinions. This is a very direct measurement of customer satisfaction and all the data compiled from such feedbacks and surveys could be very helpful in taking steps and making up new strategies to improve the customer journey and customer experience.

It is important that you measure customer satisfaction score on various different touchpoints, this will help you further identify the problem in a particular area or a particular phase of the customer journey. This will also save a lot of additional efforts that are required to analyze the data and/or additional steps to precisely identify the problem.

See More: Benefits of Queue Management using Mobile Apps

Measure Customer Churn Rate and Improve Customer Journey

Measure Customer Churn Rate and Improve Customer Journey

The customer churn rate is the customers who have cancelled their subscriptions, or services or products or returned the products or even the customers who made only one-time-purchase and never returned back. This is very important as customer retention and repeats business is very vital to ensure growth but if you are having the same number of active customer on a certain interval such as today and six months back then there is something wrong. It could be either your service delivery mechanisms, your product/service quality, your support or a lot many other factors. But is important to measure the customer churn and then compare different values at different time intervals and co-relate them with your corresponding efforts which were going on during those particular intervals.

This data and these types of analysis will not only help you improve the customer journey but will also help you improving and evaluating your marketing efforts. Like I said every action that you take in order to engage prospects and customers should have a reaction and the reaction will determine the effectiveness of your actions which in fact is your strategy and policy.

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Measure Staff Performance and Improve Work Force

Measure Staff Performance and Improve Work Force

In order to improve the customer journey, a business must have an efficient workforce. The employee’s performance should be measured and improved in order to improve their work efficiency. This will overall improve the organization’s operational capabilities both in terms of finance and technical domains. Different types of KPIs should be set for different departments and their interaction with the customers and visitors. For example, if an average service delivery time for a particular service is five minutes once a customer or prospect is at the counter, and one or two employees are continuously showing more time is being consumed by them, then you should immediately check why this is happening, sometime it could be just a technical glitch or sometimes maybe it is lag of training. But since the KPIs are indicating that the employees are taking more time than anticipated for a particular service then there must be something wrong that has to be identified and rectified.

Business can arrange specialized training opportunities for their employees, they can improve internal IT infrastructure or anything which can normalize the things. This is very important as due to some rectifiable issue your customers are having a bad experience and your employees are unable to work on their full potential. Both are bad for the overall customer journey and customer experience.

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Measure Net Promoter Score and Improve Customer Journey

Measure Net Promoter Score and Improve Customer Journey

The net promoter score is the mathematical probability of how likely a customer is willing to suggest your brand or products or services to others. It covers a quite broader spectrum. The customer endorsements can be measured through social media and their feedbacks. The business could directly ask them this question and learn about their responses and the reasons for their responses. For example, if a customer is more likely to suggest your particular product or service then you can understand why that is and vice versa.

This KPI will provide you with a greater understanding of your overall relationship with your customer and what you should expect in the future. If you are losing customers or if you are not having repeated business then the chances are very slim that any one-timer (the customer who make a purchase only once) will be going to recommend you as a brand of choice to anyone else.

The Net Promoter Score is a very serious indicator and it could impact the overall business in a very huge way. The net promoter score can only be improved by improving the customer journey and once you know and understand why your net promoter score is declining only than you can identify the causes and then take serious actions to rectify those causes.

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Conclusion

KPI Software is a very critical tool for a business’s success. If you want to improve customer retention, ensure consistent growth and increase in sales and revenue then you must have to ensure you are providing the ultimate customer journey and customer experience. KPI Software is the ultimate tools to help organizations in achieving their goals. The KPIs will provide you a deeper understanding of your operations, business processes, customer journey and customer experiences and employee performance. The data could be sourced from multiple internal and external sources and the KPIs can be set for different touchpoints and phases of your customer journey. The KPI Software will ensure that your customers are satisfied and happy, all the organizational assets are working at their best efficiency levels and the effectiveness of your business and marketing strategies.

You must be thinking by now that setting up those KPIs or doing all those analysis and data comparisons would be a very difficult and costly task! You don’t have to worry, at RSI Concepts we provide full consultations, coaching and initial setup for your KPIs along with our KPI Software tool which is equipped with advanced tools and setup wizards to make the process very easy and user friendly. Give us a call or contact us through our Contact Us page and one of our consultants will assist you with all your queries and enquiries.

Check out this: What are the Benefits of Improving Customer Journey?

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