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7 Simple Steps and Benefits of a Cloud Appraisal System for SMEs

cloud appraisal system

Many Small and Medium enterprises (SMEs) in Singapore have been facing labor shortages lately. Furthermore, with the increasing trend of picking the jobs that provide the most benefits, training, and flexibility in pursuing their ideal roles, most SMEs are challenged in attracting, developing, and retaining good talent within the company in the long run. While SME owners and managers understand that the company should provide good training, a conducive working environment, and an equitable reward system, there may not be any formal process of performance management, and if there is, it may be paper-based and cumbersome to carry out.

staff cloud appraisal system

Case Study (IT Company)

To show a clear example of the steps needed to implement a cloud performance review system, below is a case study of a client we have worked with previously.

A company providing IT consulting Services with approximately 60 headcounts, decided to implement the performance management process using a cloud-based HR system that consists of an employee performance evaluation system with the objective of improving both the retention and development of the employees.

These were the simple 7 steps taken to implement their performance management:

  1. Management implements a process to determine and communicate company and departmental annual objectives and targets at the beginning of the year.
  2. Define the cycle of evaluation in a year. In this case, there were 3 cycles.
  3. Ensure all job definitions and roles are defined and appraisal templates with the areas to be appraised.
  4. Train the managers/supervisors and communicate with the employees.
  5. Roll out a paper-based system for year one. (optional if the company is more ready)
  6. Evaluate and implement a cloud-based performance review system.
  7. Implement the performance appraisal software incorporating employee self-appraisal with peer review incorporated manually when required.

As this is a cloud employee review system, the upfront hardware and software investment is negligible and the company is only paying for the usage of the system. A cloud appraisal system offers more flexibility in terms of financial outlay.

employee cloud appraisal system


The benefits of implementing and using a cloud-based HR system are:

  1. The annual employee turnover rate is reduced from 40% to below 20%.
  2. The employee development and training plan is more proactive and employees are more motivated.
  3. More accurate and equitable bonus distribution resulting in better employee satisfaction.
  4. Managers and supervisors communicate and discuss career progression, and performance improvement more frequently resulting in more accurate and better use of company resources in training and development. The supervisor’s relationship with the employees is strengthened, which is key to the retention of good employees.
  5. Employee evaluation systems also mean more efficiency in carrying out the appraisal process.
  6. The use of moderation of appraisal across the company improves the equitability of bonus and compensation management and helps in salary management.
  7. Assist top management greatly in implementing succession planning.

One of the biggest benefits of the cloud employee review system is that it can be implemented across the region should there be any employees working in other countries. The management can still get a consolidated view of the company and perform moderation of the results of the appraisal score at the end of the year.

cloud appraisal software

All in all, most SMEs should implement a cloud appraisal management system as the effort and financial outlay are manageable and there are many benefits. It will greatly enhance the business performance and competitiveness. With an integrated HRIS and performance management system, HR and management can efficiently manage and develop talent easily.


The IQ Dynamics group consists of companies that specialize in providing integrated human capital management softwarecloud hosting and IT services, and HR services such as payroll and HR processing and advisory services.

Click here to find out more about iqDynamic’s HRMS and Talent Management System and click here to inquire about our system and services!

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