While most of the employees hate undergoing performance reviews, millennials in particular tend to get furious with mere thought of performance appraisal. The reason being, millennials aka Generation-Y workforce hate the conventional practices of performance reviews that still persist in most of the organisations to this day and they want these practices to undergo a complete overhaul.

In fact, a recent report suggested that poor performance reviews were cited as the core reasons for increased employee turnover rates in a number of organisations. The best performance appraisal software or process is the one that promotes giving frequent and relevant feedbacks to employees. It also helps in improving employee engagement to substantial levels.

Here are three simple reasons your performance appraisal process needs a reboot:

  1. Infrequent performance reviews

Accept the fact that the traditional yearly or annual performance reviews are a huge turn-off these days. Surprisingly, even large-scale companies are shunning the archaic practice of yearly performance appraisal reviews paving way for more transparent and approach-based reviews.

Frequent performance reviews and feedbacks assist employees particularly millennials in identifying weak areas that require improvement. On the other hand, yearly performance reviews eat up loads of efforts and time, which is the reason why an increasing number of businesses are opting for cloud based HRMS solutions or automated performance appraisal software to eliminate the cumbersome task of navigating through tons of spreadsheets for extracting performance data eventually simplifying the entire process.

  1. Unclear feedbacks

Another critical and alarming problem with most of the performance appraisal processes is offering unclear feedbacks to employees. In addition, employees these days prefer having more metrics and goals oriented feedbacks on a regular basis. Thus, having an automated performance appraisal software is becoming a need of the hour here to administer unbiased performance reviews.

Employees need to be well-communicated of their organisation’s expectations from them right from day one itself. This is why entrepreneurs and business managers ought to ensure that feedbacks are precise and measurable. For instance, that occasional “good job” pat on the back won’t work anymore, as it’s time to be specific when it comes to appreciating a job well done.

  1. No two-way communication

Today, employees yearn for a more casual and positive work environment especially in terms of performance appraisals. No one would love to sit through hours of grilling reviews and criticism.

In addition, a non-casual performance review tends to be more conversation-friendly focusing more on the positives than the negatives of an employee. It empowers an employee to review his/her performance and openly talk about the concerns over the given feedback. This is the primary reason more and more businesses are resorting to automated performance appraisal software solutions that empower employees to solicit performance feedbacks on a regular basis.

So these are three crystal-clear and flashing signs your performance appraisal process needs a facelift. In other words, these are tell-tale signs you need to move your performance management process to cloud based HRMS solutions.


Anwar Shaikh writes about cloud based Payroll solutions and HRMS Software in India. A self-made and reared-up writer, Anwar writes for Pocket HCM, a leading provider of automated time and attendance management systems to small and mid-sized businesses all across India.