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How does performance appraisal software help SMEs thrive?

Small businesses are the backbone of the UK economy. SMEs account for 99.9% of all private sector businesses and yet, unfortunately, it has been shown that only a quarter of these companies are actually investing in software and cloud computing.

Modern technology can be a huge driver of innovation and performance for SMEs, helping them to grow faster. In this day and age, in order to compete and thrive, companies need to stay up to date with technological advances, as well as the benefits such advances can offer.

As an example of how the right cloud-based technology can transform small businesses, we have outlined what performance management software can do for your company in real terms.

1. Cloud software is helping to level the playing field between small businesses and global conglomerates

It has been shown that cloud technologies are now levelling the playing field between big companies and SMEs. This means that what really separates corporate giants from smaller businesses is innovation, creativity, and determination, rather than resources, power, and money.

Costs are consistently decreasing for quality software, meaning smaller companies are able to be increasingly efficient and productive. In order to operate overseas and provide a product or service to a worldwide audience, it is no longer necessary to hold physical resources or offices in a number of locations. Using the benefits of cloud technology, businesses can communicate with customers and make sales from their base, allowing them to tap into lucrative new markets. Using a virtual shop window, companies are able to welcome global buyers.

Additionally, using software such as performance review software, companies are able to ensure that their workforce is up to standard and performing effectively, meaning SMEs can ensure standards equivalent to those of leading companies.

2. Performance management software saves valuable admin time

Time is money in a business, so it’s important to save time wherever you can. Many businesses find that HR processes can be time-consuming — and if this is the case for your small business, performance management software can really step in to lighten the administrative burden and provide higher levels of efficiency and automation.

Clear Review performance management software offers HR and senior management instant visibility in terms of performance data across an organisation. It generates reports instantly that detail the quality of objectives being set, progress against them and how often check-ins are being held. This means HR and senior management can analyse progress against personal development, goals and training needs. Using this information, businesses can make decisions regarding promotions and bonuses.

3. Cloud technology is spurring the growth of SMEs

With cloud technology, information is accessible anywhere and at any time, and the responsibility for IT maintenance, system issues and software upgrades lies with the service provider. This means minimal stress for a growing business, which can also benefit from having integral data at their fingertips, no matter where they choose to work.

Cloud technology is also usually very scalable, meaning that you will be able to upgrade to include new features and modules as your business develops, rather than investing all at once. All of this means that cloud computing can be a real game changer for SMEs, catalysing growth and innovation.

4. Cloud-based performance appraisal software could save SMEs money

Some companies might choose not to invest in performance review software due to concerns over expense. After all, small businesses need to be careful with their money. However, in the long run, cloud-based performance review software such as Clear Review could save businesses a lot of money. According to a recent European Commission report, cloud computing can result in 80% of companies reducing their costs by 10-20% — an amount of money that can make a tremendous difference to a growing business.

5. Performance management software helps to track goals and objectives

When you’re managing a small business, you want to make sure everyone is on the same page. You need your workforce working in the same direction, toward the same company goals, each knowing and fully understanding their SMART objectives. You also need a method in place to track goal progress and ensure everyone is on track.

Performance appraisal software allows managers and employees to set and track objectives. HR can check in to ensure everything is going smoothly. Meanwhile, employees can ask for real-time feedback at any point, meaning they are more able to get on with their work in a confident, efficient manner. When this is the case, you can be sure that your company is full of determined, ambitious and hard-working individuals who are all engaged and driven to make your company succeed.

If you are sold on the benefits of HR software, find out what to look for in performance review software. You can also see Clear Review in action by booking a FREE performance appraisal software demo today.