Building The Business Case For An Online Performance Appraisal System

Building the business case for online appraisals

All too often HR are criticised for their lack of business finesse. This is exemplified by the outdated paper-based appraisal systems still embedded within organisations that don’t deliver any business benefits and act as a ‘tick box’ exercise. What is really needed is a more relevant people focused system that supports and embeds the right behaviours amongst staff to drive performance excellence.

‘HR professionals must be an essential component of the business in order for it to succeed.’ stated Tess Smillie, Vice President HR, Samsung UK & Ireland. In support of this, HR professionals need to understand what the business needs are and then translate this into a compelling message that convinces their boardroom colleagues.

To help build the business case for moving to an online performance appraisal system, we have outlined some key arguments below:

It will empower both managers and individuals

Using an online performance appraisal system like Actus gives greater visibility and empowers managers and individuals to take control of their annual appraisal process whilst increasing accountability and buy-in from the end user.

It will increase employee engagement
Using an online solution encourages meaningful year-round people performance conversations which in turn increases employee engagement.

It will increase talent retention and reduce recruitment costs

Recruitment and replacement of top talent can be as high as £80,000. Using an online performance appraisal system will save money in the longer term as a happy workforce is a stable workforce.

It will increase compliance and reduces risk
An online performance appraisal system increases compliance and reduces risk through providing a clear audit trail of individual employee actions and interactions. Key qualifications and performance milestones can then be recorded and monitored on a regular basis.

HR professionals need to become more commercially minded to build the business case and support their cause with evidence. For example, losing talent due to poor people management and processes should be used by HR professionals to portray convincing metrics and build a compelling business argument for using an online performance appraisal system.

If you would like to see further information on the business benefits of using an online performance appraisal system, click here.