Software Comparison Strategy
Performance evaluation solutions come in all shapes and sizes. So, making the optimal buying decisions depends on how well a solution addresses your company-specific requirements.
Use the following steps to evaluate your options thoroughly:
1. Define Company Needs and Goals
Knowing what you need will help you narrow down your options. First, understand what your company wants to achieve with a performance evaluation system. Consider the following key factors and clearly define your expectations and goals for the system:
- Company size
- Number of employees
- Workforce type
- Performance goals
- Current performance evaluation strategy
- Industry, and any unique challenges.
Your chosen system must cater to the above-mentioned factors. For example, consider a system with extensive internal communication tools and customizable evaluation forms if your company oversees multiple projects that include cross-functional teams.
Real-time progress tracking, one-on-one reviews and consistent feedback tools are helpful if the goal is creating a culture of ongoing feedback.
Tip: Involve HR folks, managers and employees when conducting an internal analysis to uncover points and weaknesses in internal processes.
2. Identify Key Features
Next, determine the key features and functionalities important for your performance evaluation process and map how system capabilities can address your company’s unique goals and challenges.
Consider elements such as goal setting and tracking, continuous feedback and communication, performance analytics, employee development planning and integration capabilities with other HR systems.
Tip: Refer to this guide to identify the top features needed in an ideal system. Rank features based on their importance to your organization and use them as a benchmark when evaluating vendors.
3. Research Potential Vendors
We’ll reveal our top picks soon, but it’s good practice to do some research for yourself. Look for vendors that specialize in performance management software and have a good reputation in the market.
Consider the following sources for your software search:
-
Online Reviews: Check out online reviews to know the pros and cons of using solutions based on past customer insights.
-
Vendor Websites: Explore vendor websites to learn about their products and services.
-
Social Circles: Ask for recommendations from colleagues and industry peers about the systems they use.
-
Existing Solutions: If you have an existing performance management system, now’s the time to check with your vendor regarding the extent of their performance evaluation tools.
Tip: Look for case studies or testimonials from competitors and other companies to uncover vendors with experience in your industry.
4. Shortlist Options
Next, create a vendor shortlist based on how well their performance evaluation systems align with your defined needs and goals. Assess features, functionalities and overall fit for your organization.
Consider factors such as scalability, customization options, ease of use, and the vendor's track record.
Tip: Request product demos or trials to gain hands-on experience and involve end-users in the evaluation process to gather feedback on usability.
Also, create a checklist to compare each vendor's system and see how well they align with your requirements.
5. Consider Implementation and Support
Lastly, consider the practical aspects of implementing the performance evaluation solution.
Assess the implementation process, the level of support vendors offer, and associated costs for implementation, training and ongoing maintenance.
Also, inquire about data security measures to protect employee information.
-
Ease of Use: Learning curve associated with each alternative.
-
IT Considerations: Compatibility with existing systems and the requirements for a stand-alone system.
-
Security and Privacy: Data security practices offered by the vendor and quality certifications.
Tip: Consider reading our article on the lean selection methodology, in which we cover nine critical steps to finding the best software for your organization.
Cost & Pricing Considerations
Once you know your requirements, it’s time to determine the financial impact of implementing a new system.
You’ll incur the following common costs:
-
Implementation Costs: The initial setup and system deployment include installation, configuration and data migration expenses.
-
Purchasing or Licensing Costs: These costs can include one-time payments or ongoing subscription fees.
-
Training and Support: Expenses for training employees and managers on how to use the system effectively.
-
Maintenance and Upgrades: Ongoing costs for system maintenance, updates and potential future upgrades.
In addition to the costs mentioned above, you might incur additional expenses to address your unique software requirements:
-
Number of Users: The higher the number of administrative users navigating the system, the higher the costs.
-
Customization Costs: Additional costs involve adding features or modules to align the off-the-shelf software with your organization's specifications.
-
Data Management and Storage: Expenses for managing, storing and securing the employee data. If you’re an enterprise, you’ll likely require additional storage to manage vast employee databases, in which case, costs will escalate.
-
Integrations: Vendors can charge extra to connect third-party integration apps and systems with their solution.
