How Technology Improves Employee Performance and Development

It’s pretty standard these days to include technology as a helpful tool in improving employee performance. However, if you’re relying on tech to help drive performance impact, there are a few things to keep in mind. 

In recent years, the importance of user experience in enterprise software has become clear, especially in driving performance. However, many large organizations still prioritize features and reporting over user needs. 

The success of a new technology platform is often deemed a success based on time and budget metrics, but the real test is if employees will use it, says SHRM.

Your employees will probably be more enthusiastic about using tools to help them succeed. Examples of employee performance goals that technology could support include enhancing productivity, improving communication, or hitting sales targets.

Let’s dig into the role tech can play in improving employee performance and explore:

• Why tech is vital to improving employee performance (and vice versa)
• 4 keys to making technology drive performance impact
• Connecting technology to continuous improvement
• How to make this connection tangible for employees

Why Tech Is Vital to Improving Employee Performance (And Vice Versa)

Technology designed to improve employee performance must be functional and user-friendly. McKinsey research shows that keeping people at the core of any performance management system you implement can make you four times more likely to outperform your peers.

Over the past decade, expectations have shifted significantly — employees now expect the same seamless, intuitive experiences from enterprise software they encounter in consumer apps. If the technology you’re implementing doesn’t meet these expectations, it can become a barrier, rather than a tool for enhancing performance.

To drive high performance, focus on selecting and implementing technology that captures data and actively supports and simplifies the work employees need to do. Remember, the goal is to empower your workforce, not burden them with cumbersome tools. 

From the employee’s perspective, the fewer applications they need to manage, the better. Technology that integrates smoothly into their work reduces friction and enhances productivity. This simplicity in their tech stack allows them to focus on their core tasks without being bogged down by disconnected performance management tools. 

For the organization, high adoption rates ensure a better return on investment in technology. When the data captured reflects real work, it provides leadership with a sharper lens into performance, helping to drive informed decisions that benefit both employees and the company.

Most Effective Tools That Improve Employee Efficiency

The most effective tools for boosting employee efficiency span several categories, each addressing a key aspect of workplace productivity. 

1. Project management platforms like Asana, Trello, and Wrike allow teams to organize tasks, track progress, and collaborate seamlessly, ensuring that projects stay on schedule and resources are allocated efficiently. 
2. Performance tracking and feedback tools such as BambooHR, Lattice, and 15Five streamline review cycles, enable continuous feedback, and help align individual goals with organizational objectives, fostering a culture of ongoing improvement and accountability. 
3. Time management and productivity apps like RescueTime, DeskTime, and Hubstaff provide detailed insights into how employees spend their work hours, highlight areas for improvement, and help minimize distractions through features like automatic tracking and focus modes. 
4. Learning and development software further enhances efficiency by offering employees opportunities to upskill, access training resources, and track their professional growth, which can be integrated into broader performance management systems. 

By combining these tools, organizations can create a comprehensive ecosystem that supports productivity, transparency, and employee development at every level.

4 Keys to Making Technology Drive Performance Impact

Technology can offer impressive benefits, but the real impact comes from designing systems that align with employees’ daily work, turning technology into a productivity tool.

Here are four essential ways to successfully use tech to improve performance:

1. Provide an experience that delights and integrates with the flow of work: Technology should seamlessly integrate with daily workflows, minimizing disruptions. Embedding tools into platforms your employees use regularly ensures consistent use, making the tech feel like a natural part of the job rather than a burden. This type of streamlining also ensures the data collected is relevant, realistic, and valuable.
2. Be adaptable enough to keep up with the pace of change: Technology must adapt quickly to changing priorities without requiring extensive setup. Flexible tools like Monday.com allow teams to tailor solutions to their needs, ensuring the technology remains effective and aligned with organizational changes.
3. Find early adopters and garner early feedback: Engage early adopters to gather feedback and refine technology before full-scale deployment. Positive experiences from these users can drive wider acceptance and smoother adoption across the organization.
4. Gather data that informs business decisions: Technology should deliver accurate, relevant data that reflects actual work. Integrated systems capture valuable insights, enabling leadership to make informed, data-driven decisions that drive performance and success.

These strategies will help foster ownership, capture authentic performance data, and enable timely, data-driven decisions, helping businesses shift quickly as priorities change.

Connecting Technology to Continuous Improvement

Using technology can help you move from managing employee performance to supporting a culture of continuous improvement. 

By implementing adaptable systems, organizations can ensure that performance management is not just a static, one-time event but an ongoing process that evolves with the needs of the business. These systems can adjust weekly or monthly, making continuous feedback and improvement a natural part of the work life cycle.

Organizations can create a culture of continuous improvement by aligning technology with specific employee performance goals.

How does this work? Examples of employee performance goals might include improving customer response time or increasing project completion rates. Technology can track interactions, monitor milestones, and provide insights to help keep employees on the right path to meet their targets.

The data generated from these systems is invaluable. It provides a real-time, authentic reflection of what’s happening within the organization, allowing leaders to make informed decisions and implement changes where needed. 

This cycle of data-driven insights and adaptability creates a continuous loop of improvement, ensuring that the organization is always moving forward and refining its processes to meet current and future challenges.

Advantages of Technology in Employee Development

Technology offers significant advantages in employee development by making learning more accessible, personalized, and efficient. Online training platforms and e-learning modules allow employees to develop new skills at their own pace and on their own schedule, breaking down barriers related to location and time. 

Advanced analytics and AI-driven recommendations help tailor learning paths to individual needs, ensuring that each employee receives the most relevant and impactful training. Additionally, technology facilitates real-time feedback and progress tracking, enabling both employees and managers to monitor growth and quickly address any skill gaps. 

Overall, using AI-driven performance tools in employee development leads to a more skilled, adaptable, and engaged workforce.

Balancing Technology Use With Employee Trust

While technology streamlines communication and enhances productivity, it cannot replace the human touch that builds genuine trust and rapport among employees. Relying solely on digital tools can sometimes create a sense of distance or impersonality within teams. 

Maintaining regular face-to-face interactions-whether in-person or via video calls-remains essential for fostering connection, empathy, and understanding. Ultimately, balancing technology use with authentic human engagement ensures a workplace where trust thrives alongside innovation.

Real-World Examples of Performance-Enhancing Tech in Action

Real-world examples of performance-enhancing technology highlight how digital tools are transforming both business and sports. For instance, RheinBrücke Consulting dramatically improved its project delivery and efficiency by adopting Celoxis project management software, achieving a 30% reduction in delays and a 35% boost in overall efficiency through optimized resource allocation and real-time collaboration tools.

In the realm of employee performance, companies using Vorecol’s performance tracking solution reported up to a 20% increase in productivity and satisfaction, with managers leveraging real-time data to provide personalized feedback and foster a culture of accountability.

In sports, wearable technology like the Catapult Vector S7/T7 GPS vests now provides coaches with precise data on athletes’ movement and workload, enabling personalized training and effective injury prevention strategies. Virtual reality (VR) is also making waves, as teams use immersive simulations for realistic practice and mental preparation, which has proven especially valuable for injury rehabilitation and skill development. 

These examples demonstrate how integrating advanced technology into daily operations leads to measurable gains in efficiency, engagement, and performance across diverse fields.

How to Make This Connection Tangible for Employees

By adopting a thoughtful, iterative approach, leadership can make the connection between technology and performance improvement tangible and valuable for employees. One effective strategy is to start with pilot programs, gathering early feedback from a small group of employees. 

Slower and more thoughtful mini-launches allow organizations to refine the technology based on real user experiences before a full-scale rollout, making the process smoother and more tailored to employee needs. They also demonstrate that leadership values employee input, which is important for gaining buy-in and trust.

Communicating the value of new technology is equally important. Leaders should communicate the rationale behind the adoption, emphasizing how it will support employee performance goals and positively impact their daily work.

By building organic support through early adopters who can share their positive experiences with the broader team, leadership can foster a sense of excitement and ownership among employees. 

Managing employee performance is just one element in driving real improvement. These strategies help ensure that new technology solutions are seen as a valuable tool to support employees and enhance performance — rather than just another mandate from above.

Want to learn more about making HR tech work for you, not the other way around? Download our white paper: Breaking Down Barriers: Close Skill Gaps With HR Technology.

FAQs About Employee Performance Technology

How do you monitor employee performance using technology?

You can monitor employee performance using technology by implementing tools such as performance management software, time-tracking applications, and productivity monitoring platforms that provide real-time insights into work patterns, task completion, and overall productivity.

Is it legal for employers to use employee monitoring software?

Yes, it is legal for employers to use employee monitoring software in most countries, including the US and EU, as long as they comply with relevant laws regarding employee consent, notification, and data privacy.

What are the pros and cons of employee monitoring?

Employee monitoring can increase productivity, improve workload management, and enhance security by providing clear insights into work patterns and helping to optimize business processes. 

However, it also carries significant risks, such as invading employee privacy, damaging trust and morale, and potentially creating a stressful or distrustful work environment if not implemented transparently and ethically.

How can tech tools support employee development and growth?

Tech tools support employee development and growth by providing personalized learning paths, tracking skill progress, delivering flexible training content, and offering real-time feedback and analytics to help employees continuously improve and advance their careers.