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“There is something that is much more scarce, something rarer than ability. It is the ability to recognise ability.”–Robert Half

Have we ever asked ourselves the one big question as to why we work? It is true that the primary motivation is to secure our future financially, but another major motivation is the appreciation that we get for our performance. As per Greatify, all those organizations that offer performance-based incentive programs experience a 31% decrease in employee turnover.

Then again most organizations face a challenge when working on the performance analysis process. In fact, this process is so challenging that most organizations are still trying to decipher the answer to the question of what is performance analysis? Performance analysis is basically the systematic observations that enhance employee performance, thus improving the quality of decision making.

Over the year most companies have moved to rely on agile performance reviews that the yearly ones. Collating data with the right inputs based on the results of all agile performance reviews is a task that is not easy to complete. This is when organizations turn to the support that is given by the digitized PMS tools. The importance of performance analysis is that the management can use this as a tool to identify which aspects of an employees performance needs to be further improved.

Now, as an organization, you may opt for different types of performance analysis, which could include any of the following ways:

  • Self-assessment
  • Team assessment
  • 360-degree ratings
  • Graphic rating scale
  • Skill evaluation
  • Leader assessment

Based on the type of performance analysis you opt for you will have in place various parameters that need to be taken into consideration before giving the final analysis. With the help of automation, organizations will have better control over the flow of all the data that is compiled and this compilation will help give you better results of the performance analysis process.

Every performance analysis process is done in a step by step way and some of the steps that are included are:

  • Planning
  • Coaching
  • Reviewing
  • Action

With the help of the right digitized PMS tool all the data that is needed in order to execute these steps, is collected and used efficiently. The process of performance analysis is a continuous one and is only effective when regular feedback is given by the management to the employees.

According to the Gallup State of the American Workplace Study, only 22% of employees are engaged, and this highlighted the fact that 78% of employees can work better if their organization had the right performance analysis process and system in place. With an ideal performance analysis process in place, there is more transparency and clarity when it comes to individual performances in the organization, which in turn help and motivate employees to perform better.

With all the above-mentioned facts taken into consideration, it is easy to understand that performance analysis gets better with the help of digitization.

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