Performance reviews are not working well. It has earned a bad reputation. In fact, according to a study published in the Journal of Personnel Psychology, many people respond negatively to critical feedback they receive in a performance review.

Further, according to the Employee Recognition Programs survey, by the Society for Human Resource Management, only half of HR professionals say annual performance reviews are an accurate appraisal of an employee’s performance. In addition, 49 percent of human resources professionals believe their performance-review process needs to be re-evaluated.

For employers looking to improve the performance review process, HR technology can make a huge difference. Here are five ways HR technology can improve performance reviews.

1. Focus more on collaboration

HR technology lets managers and employees collaborate during the performance-review process. According to the Society for Human Resource Management, 90 percent of HR professionals believe that a combination of feedback from an employee’s manager as well as others in an organisation creates a more accurate picture of employee performance.

Featherlight, for example, helps employers manage real-time performance, schedule one-on-one meetings, provide continuous learning to employees and improve workplace communication.

2. Boost organisation

Performance reviews can become messy when employers do not have a system for organisation of their HR processes. For example, Weekdone enables managers to monitor their employees’ goals, accomplishments and challenges in a single place. As employees complete tasks, Weekdone emails managers weekly status reports to help them gauge their employees’ performance in real time.

See: The Most Eagerly Awaited HR Technology Solutions in 2015

3. Turn negative feedback into constructive ideas

According to the study published in the Journal of Personnel Psychology, people who are concerned with how others view their performance reported being unhappy upon receiving critical feedback. The study also showed people who care the most about learning do not take negative feedback well from others.

HR technology helps employers find ways to turn their negative feedback into constructive feedback. This allows employers to coach their employees and give them the feedback they need to succeed.

PerformYard, for example, lets employers document and announce performance results and note positive interactions that take place during employee reviews. This tool is also very useful for improving communication in the workplace and recognising employees who exceed expectations.

4. Build open communication

For employers to improve performance reviews, transparent communication should take place between the employer and employee.

By using HR software, employers can easily communicate their goals with employees and make expectations for employees more visible. This helps employees learn how their performance goals fit into the objectives of the organisation.

For example, Trakstar enables transparent communication in the workplace by helping managers keep employees informed by sending email reminders about goals and reviews.

5. Improve real-time feedback

Timely feedback is extremely important because it ensures employees receive feedback when they need it and can make changes accordingly. But, according to the Society for Human Resource Management, only 2 percent of employers perform ongoing performance reviews. For employees to reach their highest potential, they need to receive timely feedback.

HR tools such as ReviewSnap can help ensure employee reviews are completed at the proper intervals and help foster worker engagement.

See also: 6 Keys to Improve Performance Reviews

Source: Entrepreneur