Why you need a Performance Management System

Posted by Charlie • December 3, 2015 (Last modified July 29, 2018) • 2 min read

We get asked a lot about what the difference is between investing in a performance management system and just conducting performance appraisals. But really what’s the difference and why care? Performance appraisals are simply conducted a few times a year and are not generally viewed as motivational or useful to the employees.


Performance management systems are used throughout the year to help enhance communication and documentation between employees and managers. Additionally these systems help to increase the likelihood of successfully completing professional and personal development goals by setting clear expectations up front and assisting with tracking throughout the year.


More importantly Performance Management Systems, like Trakstar, help with employee engagement and retention. The 2012 Global Workforce Study Engagement at Risk found that,

  • Attracting employees is almost entirely about providing a sense of security.
  • Retaining employees has more to do with the quality of the work experience overall.
  • Employees have doubts about the level of interest and support coming from senior leaders.


Employee retention and engagement are associated with feelings of efficacy and security. The SHRM Executive Briefing  reports that employees are more willing to forego raises for an increased sense of security and feelings of efficacy. A performance management system can act as that key component by facilitating individualized goals and show success as those milestones are achieved. Performance Management Systems help to,

  • Employees and Managers to set goals and track progress with shared tracking tools.
  • Appraisal data can be used to spot flight risks, under utilized, high performing employees or low performing employees who are consistently below standards.
  • Automated reminder emails encourage employees to take notes on their accomplishments all year long allowing for improved communication throughout the year and more well informed appraisals.
  • Goal tracking throughout the year leads to improved productivity and improved productivity. Managers and employees can work more collaboratively ensuring expectations are set and met.
  • Collect data and allows leadership to make informed, data based decisions


Performance management systems are a wise investment if you are looking for ways to attract, identify, and keep talented employees.

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