Ensuring success in a business with more than one employee requires sound employee feedback and appraisals, and the right performance appraisal software can make these tasks much easier. Most supervisors would love to avoid dreaded feedback/appraisal sessions, partly because of time taken away from core business to gather appropriate information, document and compile it into another meaningful document. Additionally, supervisors might have anxiety over performance reviews if they've neglected to capture specific behaviors that justify a rating; these types of employee reviews rarely go well and usually end up with angry employees openly challenging the rating.

Performance review software provides a win-win employee performance solution that benefits owners, supervisors, employees and the company. For making the most of performance appraisal software, you'll need to:

1. Find a performance appraisal system that lets you track employee behavior through the year.

2. Consider employee performance evaluation software that includes 360 degree feedback.

3. Invest in performance appraisal writing software that helps you set proper goals for your employees.

Action Steps
The best contacts and resources to help you get it done

Rely on employee review software that lets you track/document performance year round

Make writing the next performance appraisal easier by investing in employee performance appraisal software that lets you quickly incorporate notes you've recorded about employees into their reviews. Employee performance tracking software will drastically speed up your review writing and free more time for other business.

I recommend: Learn more about the level/type of details you should track with employee performance tracking software by reading "Providing Good Feedback: Key Elements & Examples" and other performance appraisal tips from HRN Management Group, an HR software and consulting company. Click on any of the "Learn More" links for different TrakStar performance appraisal software features from Promantek. This company has built into its software the ability to record notes on employees throughout the year, simplifying your task of illustrating your employees' growth (or lack of) since their last evaluations.

Collect even more information with employee appraisal software that includes 360 degree feedback

Supervisors gather information on employees from their own observations and by looking at the results produced. That information doesn't always tell the whole story, however, and 360 degree feedback can fill gaps by incorporating feedback from people in regular contact with employees during the work day. Supervisors often use this type of feedback to confirm their overall analysis of the employee's performance, but it can also lead to discovery of specific behaviors they weren't aware of like outstanding leadership examples behind the scenes, putting the company first, lying, relationships with coworkers or competency in their jobs.

I recommend: Get more knowledgeable about 360 degree feedback by reading the article from CustomInsight and then clicking on any article links at the bottom of the page. Find out more the 360 degree feedback software technology of Smart360 from Appraisal Smart.

Find employee review software with goal setting/management

During a review session, feedback relate to the individual's goals, and those goals should link to company goals. To get the most out of software for performance reviews, invest in a program that makes it easier for you to work with employees towards setting their goals and objectives.

I recommend: Check out the Professional Edition HR appraisal software from SuccessFactors. This modular software includes a goal management module to help you motivate employees to do their part in helping the division/company reach its goals. Learn more about the Workforce Performance Management suite from Softscape. The bundled employee review software includes three modules: performance management, goals management and competency management and encourages workers to create their own goals tied to company goals.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you decide on performance and review software that includes 360 degree feedback and you've never used this tool before, learn more before you try it on your employees. While it can be very effective, it can also create a climate of distrust if not accomplished correctly.

Regularly monitoring employee performance enables employers to reward good work and help workers learn about areas they need to improve. It also allows employers to discover gaps in their employee pool that need to be filled. And for determining bonuses or raises, tracking employee performance can reduce the subjective elements of reviews.

A successful employee-tracking program will allow you to:

1. Track performance down to the individual employee and see how it impacts overall company goals.
2. Enhance employee development because when clear goals are set, it's easier to meet them.
3. Make the review process more accurate and less subjective.
4. Place employees in the correct position and determine what you can reasonably expect from them.

Action Steps
The best contacts and resources to help you get it done

Get a software solution

Many companies are using employee performance management (EPM) software to handle evaluations. EPM allows companies to link individual performance to overall company goals.

I recommend: HR Online offers Performance Development Smart Suite with modules to help you better manage every stage of the process online, from evaluation and career planning to administration. Success Factors also offers a suite of software for employee evaluation and tracking.

Keep it simple. And legal.

Your business may not be big enough yet nor have enough employees to justify the expense of an investment in technology to track performance. Check out free sample evaluation forms online that you can tailor to fit your firm.

I recommend: Legal resource site Findlaw offers free sample evaluation forms and tools, and related articles about legal aspects of the hiring and evaluation process.

Do a 360

Many companies have given up traditional reviews entirely and use 360 reviews, which incorporate not only feedback from the supervisor and the employee, but also subordinates and a small group of peers. Done anonymously, they're designed to provide a more complete picture of the employee's strengths and weaknesses.

I recommend: Employee performance management technology firm Halogen Software offers Web-based applications designed to streamline the 360 review process.

Call in the Experts

Instead of creating your own evaluation forms and processes or using software, you may want to look to a consultant to design an evaluation and retention program specifically for your company.

I recommend: Conseo can develop simulation exercises and other tests to evaluate employee skills.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You're the boss: When using EPM software, don't let the software dictate what type of data you want to use to measure performance.
• •  A little patience: EPM systems can take a while to customize, and it may be a while before you see results.
• •  It's not just about you: Keep in mind performance tracking isn't just about making life easier for you; it's also about helping your team members reach their potential.
• •  Training is key: Getting your employees on board is critical. The best system in the world won't work unless it's used correctly.

With performance appraisals, the question you must answer isn't whether or not you should invest in performance review software; consider that a given. Instead, ask yourself what are the most important aspects of any software you might purchase. Determine your criteria before you set out to spend hundreds or thousands of dollars on software.

While performance appraisal software might eat up a chunk of your budget, the right software for your company will ultimately help you grow more productive and gain more time for you and your supervisors to perform other core business tasks. As you consider the pricing and costs of performance appraisal software available, take into account the following:

1. Look for employee appraisal software that includes all the features you need and can get within your price range.

2. Check out technical support plan pricing before purchasing employee performance appraisal software.

3. Identify whether using web-based performance appraisal writing software or purchasing performance and review software will better accommodate your situation and your budget.

Action Steps
The best contacts and resources to help you get it done

Get all the features with a performance appraisal system you can afford

You can find software as basic or complex as you need, with a few features or all-in-one packages. Lots of software for performance reviews may give you more than you need if you only have a few employees and could cost more than it might be worth to you.

I recommend: Halogen Software offers an employee performance management ROI calculator to help you figure out whether its software solutions can help you attain a measurable return on investment for your company. Check out the Talent Development Suite from SumTotal for an example of how all-inclusive a bundle you could get -- if you can afford it. This performance management platform includes modules to handle goal management, performance appraisals, 360 degree feedback, career/succession planning, compensation management and more.

Evaluate the benefit of tech support for employee review software

Depending on the complexity of the employee performance solution you choose, you may decide you don't need to spend an inordinate amount of money on a support plan.

I recommend: With the reasonably-priced, web-based ReviewSNAP HR management system, features include automated performance reviews, goal management and more without paying extra for support. The company operates its customer care operation during regular business hours throughout the week via telephone and contact through the website's "Contact Us" page. Other employee performance tracking software, like ManagerAssistant.com, does offer technical support packages at different price points.

Compare costs of a web based performance appraisal system with purchasing employee review software

One difference encountered between web-based systems and software you purchase occurs in the pricing. You pay one lump sum for software you buy, while you may pay either a monthly or annual subscription fee for web-based systems. The number of employees in your organization or the number of employees with access to the system will often dictate the annual or monthly fee you pay.

I recommend: When you order the web-based Performance Pro, your price includes everything: content, upgrades, maintenance, hosting and support. The number of employees in your company drives the pricing calculation. If you're just looking for simple, inexpensive software for writing performance reviews, learn more about the Performance Now software from G. Neil, a provider of human resources products; you'll own the software without having to worry about paying another hefty fee next month or next year.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Ensure you make a worthwhile investment in your employee performance evaluation software by taking advantage of free trials and online product demos. These will help you determine ease of use and generally confirm that you're getting what you pay for.

Analyze the ways you and your employees complete tasks, recording the results of the analysis using specially designed software tools. Use performance appraisal software key terms to utilize the programming to its fullest potential.

When you know and understand performance appraisal software key terms, it helps you communicate results effectively to employees and other professionals. It also helps you determine which facets of the program apply to your unique situation.

Action Steps
The best contacts and resources to help you get it done

Performance appraisal

Performance appraisal, sometimes called an employee appraisal, is a term for an evaluation of an employee based on job performance. Computer software keeps this appraisal fair and consistent.

I recommend: Dexter A. Hansen offers tips on using software in performance appraisal.

360 reviews

Employers sometimes use software to analyze 360 reviews, which include input from each employee, their peers, customers and any other resource relevant to the job situation.

I recommend: SIGMA Assessment Systems offers a detailed article offering tips on effectively implementing a 360 review. It covers areas such as sensitivity, as well as training for evaluators.

Performance review

Performance review is a method in which employers evaluate employee job performance. Delving deeper than a basic appraisal, the review often evaluates costs, quality of performance and quantity of work time.

I recommend: Stackoverflow.com offers tips on effectively using software for optimal results.

Organizational goals

This term refers to goals established after a software analysis that determines areas which need improvement. It covers goals for individual members, as well as team and collaborative goals.

I recommend: Halogen Software offers tools for determining organizational goals.

Skill gaps

Employee performance management software feedback measures differences between capabilities and performance in an employee, in direct correlation to the job's role. It shows where employees lack skill.

I recommend: Big Dog and Little Dog offers a detailed description of skill gap. It provides information on what one might look for in a program to determine skill gaps.

Succession planning

Succession planning refers to an analysis of performance that yields a smooth transition and continued business success when an employee takes over an employers' position.

I recommend: Softscape offers programming that determines succession planning with performance appraisal software. It highlights benefits and features that simplify the analysis.