Redesigning Performance Management Systems

Performance Review Systems will be more effective, productive and produce holistic results when we redesign and digitise it.

Most of the HR processes have already been digitised; niche HR organisations have adopted advanced tools and products that automate routine and time-taking processes. Automation in the areas of payroll, talent searching or employee engagement has gained importance. Slowly digitisation of performance review systems has also gained momentum. Let’s take a quick look at why digital performance review systems are becoming popular.

The Advantages and Ease

The most evident advantages of digitising processes such as reviews and appraisals using digital tools are consistency, reliability and promptness. Generally, performance appraisal meetings are undertaken every annually or quarterly which causes stress for many of us. Traditional process of doing paperwork and marking a person as top, average or low performer is leading to unsatisfactory results.

Digitising the process will reduce the human bias by having a transparent and fair employee performance system establishing a sense of trust with the employee. It also allows customised and in-depth feedback erasing the subjective remarks from the manager. Goals and accountable responsibilities are stored in a systematic way so that they are lost over emails or MoMs.

Additionally, valuable data generated using a digital performance system is more secure and accessible to all the stakeholders. It allows for better tracking and streamlining the processes.

Updating the Traditional Performance Systems

Digitising review systems will enable employers and HR leaders to get rid of inefficiencies of traditional performance management systems.

Furthermore, realistic and consistent appraisals lead to better understanding of employee weaknesses and strengths thus proactively making a road ahead more graceful. As a result, training and building the teams will become more efficient and effective. Most important metrics like performance bonuses and overtime pay calculations will become more easier by avoiding subjective judgements.


Big giants are moving from traditional appraisal approaches to digitisation indicating that there is a lot of scope for improvement. Let’s take the example of Deloitte, through internal study it was found that nearly two million hours a year were spent only on performance reviews. It is because of the problem complexity and amount of time taken to process the reviews.

Leading tech companies such as Google, Adobe, IBM, Microsoft, Dell, Cisco, Infosys, Accenture, Wipro, and TCS have already moved towards interactive and accessible platforms. Hence digitising the process has ensured continuity, accuracy, and timeliness.

Addressing a Changing Work Environment

Lastly, digital performance systems have considered today’s workforce interests as well. It has completely changed the entire definition of work itself.

Adapting flexible and latest methods equips employees with directed goals and motivates them to follow company values and mission.

Companies like PwC, IBM, and Accenture approached their employees first to understand the best design and kind of evaluation they think will work for performance review systems. Thus, features like customised feedback, year-round performance management, employee empowerment, and learning based reports have been incorporated in different ways, in which employee performance is reviewed. For instance Uber lists three employee skills in which they are very good at and in which they need to improve.

By focusing on digital performance review systems, storing the data and processes on cloud has resulted in easier and accessible reports. Transition from traditional approach of performance review to digitisation is likely to witness exciting developments in the future.

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