Five Ways a Performance Management System Makes Your Small Business More Profitable

Small business owners and managers make every minute and every dollar count. Software systems may seem like an extravagant purchase, however, the right performance management system can pay for itself.

Performance management systems empower you to better manage your staff and contractors at every stage from recruitment through exit. It also helps you plan professional development for better coaching and training.

Five Ways Performance Management Systems Make Your Small Business More Profitable

1. Better Identify Gaps in Skills and Expertise Across Your Entire Team

A performance management system offers options to catalog the skills and expertise of your existing staff. This inventory reminds you of the existing skill set and exposes any gaps. Using this insight, you can invest in training existing staff or recruiting new talent.

2. Conduct Staff Evaluations That Actually Help Improve Staff Performance

When you prepare for staff reviews, have you ever wished for comprehensive information on each team member’s performance? The system can go beyond the old school employee file. User this hub to track self-assessment scores, personnel notes, goals, skills, notes on soft skills, and more. Use holistic data to plan a coaching, professional development or follow-up strategy. Track check-ins and updates for continuous improvement.

3.  Improve Team Morale

Employees love to come to work when their work is rewarding and interesting. Most people enjoy a challenge that they are well equipped to tackle. A University of Warwick study found that happy employees are also 12% more productive! The management system tracks employee development and allows managers to map their success. This makes it easier for managers to encourage and motivate team members resulting in improved morale.

4. Delight Your Clients or Customers

Your customer service, sales, and public facing staff represent your company. When they are competent, empowered and happy it shows. Customer concerns are quickly and correctly resolved and your staff takes the initiative to offer the best service possible. Happy customers become loyal customers and your business prospers.

5. Manage Liability with Accurate Records

Performance management systems are not substitutes for professional legal advice or following best practices. However, the careful record keeping helps expose liabilities or weaknesses that need to be addressed. In the worst case, it also provides an accurate trail in case you need to reprimand or let an employee go.

A good performance management system provides comprehensive talent and personnel management tools. When combined with best practices, managers use the information to expand the team’s morale, productivity, and competence. Happy, productive, and skilled employees result in greater profits and growth.