Monitoring employee performance does not have to be the tension-filled process it’s widely been considered in corporate America. In fact, it can be the exact opposite. Employee performance management software can flip the switch on your employees’ view of having their performance regularly reviewed.
How? By making performance review a constant, rather than a (dreaded) quarterly or annual event.
Not only does this make your employees happier, it drives increased revenue for your company. After all, engaged and satisfied employees are more motivated to perform at a high level.
In the sections that follow, we’ll explore what an employee performance management system is and 4 important ways it can drive revenue for your organization.
- Employee performance management software systems help managers track employee, team, and company performance.
- These systems drive revenue by providing a platform for collaborative goal setting, continuous feedback, and sales incentive programs — all of which boost employee performance.
- Managers can also use employee performance management software to identify and remove employees who are consistently underperforming.
What is employee performance management software and how does it work?
Employee performance management software is a system that helps managers track and assess employee performance at an individual, team, or company-wide level. But contrary to what many believe, it’s not strictly about tracking individual sales performance.
In fact, it’s a tool that can help companies coach employees, increase motivation, make better decisions, reach goals, and ultimately earn more revenue.
It really comes down to how companies choose to use it. Smart companies shy away from employee performance management approaches that create unpleasant, high-pressure work environments. Instead they opt to use goal-setting, coaching, incentives and more to make employees self-motivated to succeed.
This is particularly important for sales organizations, where the work can be grueling by nature and employees often feel underappreciated. When sales employees feel underappreciated at your organization, it can lead to lower productivity. Over time, it can impact the larger work environment at your company and decrease overall employee morale.
On the other hand, leveraging technology tools like employee performance management software to motivate and reward employees can create friendly competition amongst your sales staff and motivate people to reach their full potential.
Managers and executives can also use these systems to understand factors that may be impacting performance, make more accurate sales forecasts, provide necessary additional training, and improve professional development practices.
Combined, these strategies drive higher revenue and faster growth.
Let’s take a more detailed look at 4 specific ways you can use employee performance management software to drive revenue growth at your organization.
4 Ways Employee Management Software Drives Revenue
Collaborative Goals that Drive High Performance
Employees want to feel valued, and part of that is understanding how their work contributes to the larger goals of your organization. In fact, employee engagement is higher when their goals are intentionally aligned with those of their company.
Your employee performance management system can serve as your platform for aligning goals at every level and a central viewpoint for monitoring progress. When employees can see and track their progress toward goals (and know their managers can, too) it makes the process more collaborative and creates healthy accountability for hitting targets.
Continuous Feedback and Opportunities for Improvement
Employee performance management systems provide a vehicle for continuous feedback that’s more automated (and definitely less intimidating) than traditional performance review processes. Employees can receive objective feedback in the form of platform data as well as more personalized feedback from managers in the form of messages, comments, and other communications that happen within the system.
There are several benefits to continuous feedback enabled by employee performance management systems, including:
- Higher engagement between employees and managers - Frequent communication creates stronger working relationships and open lines of communication.
- Increased actionability - When employees receive feedback in real-time (as opposed to, say, an annual performance review), they’re able to actually take action in response.
- More employee growth - Employees can use continuous feedback to grow and improve all the time. When feedback becomes a constant, employees feel that their managers and companies are invested in their success. In turn, they’re motivated to perform (and earn more revenue for the company).
Opportunities for Offering Incentives to Hit Targets
Employee performance management systems make it easier for companies and sales managers to launch sales incentive programs. These programs not only reward high performance, they motivate teams to hit and often exceed future goals.
Using real-time platform data, you can run and monitor ongoing incentive programs or launch one to give employee performance a boost in the final stretch of a month, quarter, or year. When sales teams and employees are hitting targets at a higher rate, you can expect to see revenue grow.
Remove Problem Employees
Last but not least is an unavoidable, inevitable truth: your company will experience problem employees. And if their low performance is left unaddressed, it will absolutely impact your bottom line over time.
Just as sales managers can use employee performance management systems to recognize high performing employees and help others improve, they can also spot situations where employees are just not fulfilling their duties and remove them from the organization.
Enhance Your Performance Management Approach
Investing in employee management software is an investment in the future revenue potential of your organization. Xactly’s Agile Revenue Performance Management solutions can help you implement processes that are collaborative, automated, data-informed, and continuous to drive employee engagement and success.