5 Steps to Take to Look For A New Performance Management System

Posted by Noel • November 11, 2024 • 4 min read

Your task: Upgrade your performance management system. Your new one needs to be modern, efficient, and engaging. It’s harder to find than you might think.

This is one of the most important tasks for HR leaders as we approach review season. Why? A well-implemented performance management system significantly boosts employee engagement in the process. This doesn’t just mean individual contributors – managers need a better system too! You’ll find that when managers have what they need, your teams perform better.

So how can you start your search? In this post, we’ll introduce a 5-step process to find the perfect fit. In a hurry? Schedule a demo of Mitratech’s performance management system now.

Step 1: Define Your Needs

Before diving into the market, it’s crucial to understand your organization’s specific needs. There’s a reason you need a new system. If you aren’t sure what it is, you can ask yourself the following questions:

  • What are your current pain points with your existing system?
    • Is it difficult to use?
    • Does it lack key features?
    • Is it not aligned with your company culture?
  • What are your performance management goals?
    • Do you want to improve employee engagement?
    • Increase productivity?
    • Enhance talent development?
  • What features are essential for your organization?
    • Goal setting
    • Performance reviews
    • Continuous feedback
    • Real-time coaching
    • Talent development
    • Compensation planning

You don’t have to be the only one answering them! Ask everyone within the organization for input! From someone who was just hired a few weeks ago (they may have used a better system in the past) to the CEO – they’ll have input. Organize your notes, run a survey, and see if there are any trends. You might be surprised what you find.

Key Takeaway. Define your needs to select a system that aligns with your organization.

Step 2: Research and Evaluate

Once you have an understanding of your needs, it’s time to start researching solutions. Here are some tips:

  • Read reviews and case studies:
    • Look for reviews from other organizations in your industry to get a sense of real-world experiences.
  • Consider factors like cost, ease of use, scalability, integration capabilities, and customer support.
    • A good performance management system should be easy to implement and use, and it should be able to grow with your organization.
  • Create a shortlist of potential vendors:
    • Narrow down your options to a few top contenders.

Key Takeaway: Thorough research helps you identify the best performance management solutions.

Step 3: Request Demos and Trials

Once you have a shortlist of potential vendors, it’s time to schedule demos. It might seem like this takes up too much time, but it doesn’t. This will give you a chance to see the software in action and test it out for yourself. You’ll be able to ask questions that are specific to your needs.

Not sure what to ask? Here’s our list of questions that we see most commonly:

  • How easy is it to use?
  • Can it be customized to fit our specific needs?
  • How does it integrate with our existing HR systems?
  • What kind of support is available?
  • What is the cost of ownership?

Demos are another way to gain trust with your stakeholders. Use clips or collateral from your demos to ensure you will be aligned moving forward. Your CEO or CFO may not be able to attend a demo, but they may want to see a video clip.

Key Takeaway: Getting hands-on experience with different performance management systems will help you make an informed decision.

Step 4: Involve Your Team

Don’t forget to involve your employees and managers in the decision-making process. After all, they’re the ones who will be using the system. You can really do this at any point within the process, but near the end is particularly important. 

  • Conduct surveys and focus groups to gather feedback on their needs and preferences.
  • Involve key stakeholders in the decision-making process to ensure buy-in and smooth implementation.

Of course, you have to navigate getting too much feedback as well. Getting the most feedback from managers and people leaders will be most important. Why? They are the ones using it! 

Key Takeaway: Employee buy-in is crucial for the success of any new performance management system.

Step 5: Make an Informed Decision

Once you’ve gathered all the necessary information, it’s time to make a decision. This can feel pretty heavy and like there’s a good chance you can go wrong. The good news is that if you’ve carefully taken these steps, you should already know which one is the best fit.

Not sure?

  • Consider your organization’s long-term goals and strategy.
  • Choose a system that aligns with your culture and values.
  • Negotiate pricing and licensing terms with the selected vendor.
  • Develop a comprehensive implementation plan.

Key Takeaway: A well-implemented performance management system can have a significant impact on your organization’s success.

Want to learn more about how we can help you transform your performance management system?

Schedule a demo today!

Did you know that 70% of employees feel their performance reviews are not meaningful? A modern performance management system can help you change that. By providing continuous feedback, setting clear goals, and recognizing employee achievements, you create a culture of excellence.

Ready to take your performance management to the next level? Contact us today to learn more.

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