How technology is changing the way SMEs conduct performance reviews

Going digital might actually be the best way to really get to know your staff.

In this modern business environment, managers must focus more on people and culture and stop treating employees like resources, according to a recent Harvard Business Review (HBR) report.

To do this, companies are not only conducting their annual performance reviews, but also holding weekly or monthly check-ins with staff.

This means managers are getting to the heart of issues early, reframing ideas, creating informal bonds that encourage collaboration, and making their organisation healthier and more productive.

So, what role does technology play?

More and more SMEs are moving to cloud-based HR systems, which systemise and simplify HR management. Which means that you are not only provided with annual performance review documents and advice for how to conduct your reviews and rate your employees’ performance objectives, job skills and personal attributes. But you can also complete your induction checklist online, and record any ongoing discussions with the employee about their performance and career aspirations using conversation notes.

These notes are saved on the cloud so that you – and your employee – can check in at any time to see where progress (or a lack of) is being made.

Plus, if a performance issue does escalate and the employment ends badly, these online notes can be used to show the steps you’ve taken to try and correct the situation, which will help reduce your legal risk if the matter does go to court.

The bonus is, by using the latest HR technology in this way, you no longer waste time shifting through hordes of traditional HR paperwork and admin. Instead, you are free to spend more time directly working with and managing your staff.

Because, as you know, today’s marketplace is fast paced and competitive. And, it doesn’t take much for your best talent to move on if they don’t feel supported or have access to career growth opportunities.

Try checking in regularly with your staff to ask questions like:

• What new skills or behaviours would you like to work on in the coming months to support you in your role?

• Are there any professional development opportunities you would like to undertake, relevant to your career goals?

And remember, the better you are at responding to the answers you receive, the more likely your employees are going to stay motivated, productive and successful in their roles.

After all, leaders who lack skills in people management are unlikely to succeed for long in high-level jobs, concludes the HBR report.

DiffuzeHR is transforming the way SMEs approach HR by giving them access to an easy-to-use, cloud-based system (and the smarts) to systemize and simplify, ramp professionalism, and gain proactive control. DiffuzeHR helps SMEs by allowing them to minimise risks, reduce legal fees, decrease time spent on admin, attract and retain staff, and leverage best-practice, industry-specific HR and legal expertise in a way that is simple, easy, and efficient.

To learn more about the benefits of automating HR with DiffuzeHR, please book a demo at http://diffuze.com.au/.

Barry Lehrer

Having run my own small business for over twenty years, I understand one of the biggest challenges is protecting your business from potentially damaging personnel or HR issues. That’s why I developed Diffuze.