September 11, 2023

5 Benefits of Digitizing Performance Reviews

microsoft performance review system

microsoft performance review system

Performance reviews are an essential part of any organization’s talent and performance management strategy. Traditionally, these evaluations have been conducted through manual processes, using stacks of paperwork and tedious administrative work. Luckily, in recent years, digitization of performance review has become the new norm. That’s why in this article, we will talk about five important benefits of digitizing performance reviews and how it can transform your organization’s performance management.

1. Increases Efficiency and Productivity 

Digitizing your performance review process simplifies the entire evaluation process and leads to increased efficiency and productivity in your organization. Using digital tools and platforms will help you manage performance appraisals more effectively, reducing the time spent on paperwork, data entry, and manual record-keeping. No one wants to waste time on boring paperwork when you can easily fill out a digital performance review, right? Efficiency gained from digitizing performance reviews is important for HR professionals and managers to focus on providing meaningful feedback and actionable insights to employees.

And the best part is: digital platforms can automate reminders and notifications! It’s a hassle to conduct performance reviews manually with every single employee and be on time, but by using digital performance review software you can easily follow up if reviews are conducted on time and according to the established schedule. 

2. Real-time Data and Analytics

Collecting real-time data is important. Having the power of seeing data as collected, and analyzing with one button is a fantastic privilege. Traditional reviews often rely on static information that you collect at that exact moment, which may not accurately represent an employee’s current performance. With digital tools, you can continuously monitor and update performance data, and even compare with old reviews without going through huge binders full of paper. 

Digital performance review platforms also provide advanced analytics features you can use to collect insights into workforce trends, detecting strengths and areas for improvement on an individual and team level. Having a data-driven approach in performance reviews will help you make better decisions on talent development, succession planning, and performance-based promotions.

3. Transparent and Objective Evaluation

Being transparent and objective is the most important aspect of a healthy and effective performance review process, and digitization of performance reviews will lead to a fairer evaluation since it reduces biases and subjectivity. When performance data is captured digitally, it becomes easier to use clear evaluation criteria and track employees’ progress against predefined goals and key performance indicators. Also, digitizing performance reviews will make sure that everyone is answering the same questions without any personalization. 

Digital platforms also allow for more reviews to be collected and implemented, resulting in a better-rounded review process. It’s important that reviewers understand they’re not solely responsible for collecting input on their own; it should also come from others who can provide additional perspectives as well.

4. Continuous Feedback and Development

Digitization of performance reviews makes room for a shift towards continuous feedback and development, rather than relying on annual or semi-annual reviews that are all about organizational goals. Continuous feedback helps employees learn, grow, and improve their performance; builds trust between employee and manager; and promotes open communication. With digital tools, you can send real-time feedback to employees which is a great way to create a culture of open communication and growth. 

For example, if you’re using Microsoft Teams for collaboration, imagine you can send easy feedback without leaving the chat, or conducting a Microsoft performance review process all inside Teams. Implementing the right tool will give this opportunity and much more! 

5. Employee Empowerment and Engagement

When employees are involved in the performance review process, they will feel empowered and engaged in their own growth. Digitization of performance reviews also includes self-assessment and the ability to track progress towards personal and professional goals. 

Some digital platforms can even recommend employees tips and resources on how to improve their performance based on data generated from performance reviews. Sounds crazy, right? Offering employees a customized approach to development not only boosts employee satisfaction but also contributes to higher retention rates as employees perceive their growth potential within the organization.


Performance reviews are moving from hard copy to digital format and offering a number of advantages for organizations that want better ways of tracking employee development. Some advantages of digitization we mentioned are increased efficiency, real-time data and analytics, transparency, continuous feedback, and employee empowerment.

Through the use of digital tools and platforms, businesses can create a more streamlined evaluation process for employee performance—one that is objective and based on merit rather than subjective opinion. As more and more businesses use digital technology, it’s no longer an option for organizations to consider embracing digitized performance reviews—it’s a necessity. Find the best tool for your organization and enjoy the digital era of performance reviews!

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