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Reasons to Invest in a Good Performance Management System

Everyone, no matter what their role is within an organization, would agree that performance matters. So, it would make sense, to invest in a system or process that would allow the entire organization to draw the best out of their employees. Where most people disagree, is on how to handle the performance management and how much they should invest in it.

Creating a high-performing organization requires an ongoing commitment towards continuous improvement and communication between employees. When an effective performance management system is in place to help manage performance, the people within the organization are able to unleash their potential, and eliminate avoidable costs for the company as well.

The return on investment and benefits for a good performance management system can be measured in many ways. Below, we have items that would be a good measure of ROI or reasons to invest in a good performance management system.



1. Modernization of your Processes

Today’s workforce, especially millennial, expect many processes to be digital and accessible to them at all times. A good performance management system helps to recognize employees for all their efforts and achievements, create opportunities for advancement, and provide regular feedback. Take advantage of millennial’s technological savviness through an automated performance management system.


2. Reduce Employee Turnover and Termination Costs

A robust performance management system helps you to identify disengaged and low performers within your organization to avoid termination and termination costs. Termination costs can cover a wide range of activities such as unemployment, severance, legal fees, time spent on exit interviews. Following termination comes vacancy costs and the cost of per hire.


3. Increase Employee Productivity

One of the best way to increase employee productivity is to have an effective management process and system that allows the organization to set goals, align them, have frequent communications and give people ownership of their progress and process. A performance management system can digitize this process and allow the users and human resource professionals to spend lost work hours on shifting through a pen and paper process.


4. Improving Managers and Employee Communication

An effective performance management system will save human resources and all the other members of the organization valuable amounts of time on various activities. Time usually spent on documentation and paper administration can be spent on building relationships between managers and employees, and in return creating a more engaged workforce.

More and more companies are shifting to a digital process for their performance management. Some are aiming to rid themselves from the annual pen and paper process, simply because it is not effective, while others are looking for ways to overhaul the entire performance management process altogether. Either way, there are many benefits to digitizing your performance management process and many organizations have found it to be a great return on investment.


Synergita is an award-winning performance management, employee engagement and employee development software. With the mission of unlocking an employee’s potential, Synergita combines all of today’s best practices and technology to help organizations create “peopleMAGIC” at an affordable price. Speak to one of our representatives today to see how we can help reduce costs and improve your overall performance management process.

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