Best Performance Management Software 2024

What Is Performance Management Software?

Performance management software helps organizations oversee employee performance by allowing managers to set goals, track progress, and offer feedback. It also supports succession planning and conducting performance reviews.

Performance management software enables managers to assess an employee’s job performance efficiently. It offers a platform where managers and their team members can:

1. Collaboratively set goals.
2. Track the progress of these goals.
3. Provide and receive feedback.
4. Communicate both praise and concerns.

This software assists employees in establishing and monitoring their professional objectives, impacting managerial decisions regarding bonuses and promotions. Conversely, it provides context for underperforming employees, aiding managers in finding ways to better support them through training, reassignment, or a performance improvement plan (PIP). Therefore, performance management software plays a crucial role in enhancing employee engagement, satisfaction, and ultimately, retention within the organization.

Moreover, the software facilitates ongoing communication between employees and managers by offering question prompts and enabling note-taking within the system. This ensures that issues are addressed promptly and fosters alignment between both parties. Additionally, these software solutions often integrate feedback not only from the manager but also from team members, assessing an employee’s ability to collaborate effectively within a team dynamic.

SiSu Freedom has assembled a list of the best performance management software for 2024 to assist you in making well-informed choices.

What Should You Look for in Performance Review Software?

When seeking suitable performance review software, consider these aspects:

1. User-Friendliness: Opt for a platform accessible to both managers and employees, ensuring easy navigation.
2. Customization: Look for software adaptable to your organization’s specific performance metrics and objectives.
3. Integration: Choose software that smoothly integrates with other tools your organization utilizes, streamlining data transfer.
4. Reporting and Analytics: Prioritize software with strong reporting and analytics capabilities to derive data-driven insights on workforce trends, strengths, and areas needing enhancement.

How Much Does Performance Management Software Cost?

The cost of performance management software varies significantly, ranging from $0 to over $1,000 per month. This pricing depends on the software’s features, offered integrations, and the number of users. Some performance management tools are part of a comprehensive platform, which might entail a higher price commitment.

Certain standalone performance management tools have free versions:

• FlowyTeam for one user
• Charma for up to four users
• Profit.co for up to five users

Other standalone software typically starts around $4 per person per month.

Here are examples of per-user prices from various performance management software vendors:

• Lattice: $4-$11 per person per month
• 15Five: $4-$16 per person per month
• Leapsome begins at $8 per individual per month
• PerformYard: $5-$10 per person per month

The number of employees in your organization plays a crucial role in determining costs. Small businesses and startups might consider free software options, but it’s essential to assess whether paid software, with more advanced features, aligns with your budget. Depending on your company size and financial plan, upgrading your current HRIS or HRMS to include performance management or choosing the add-on option might be a worthwhile consideration.

The Best Performance Management Software of 2024

1. Lattice: Best for Career Tracks

Lattice, topping the list, stands as a premier performance management software in the market. It boasts an extensive range of features encompassing goal tracking, compensation reviews, analytics, continuous feedback, public celebrations, onboarding, surveys, competencies, development plans, career tracking, and AI sentiment analysis. Their performance management plans, incorporating OKRs and goals, commence at $11 per person per month, while more streamlined options are accessible at $4 per person per month.

Lattice proves to be an ideal selection for businesses of various sizes and industries due to its comprehensive performance management suite.

Features:

• Automated rules, inline notes, and tags, along with pre-designed templates.
• Effortless integration with over 20 HR and productivity tools.
• Clear and transparent pricing.
• Among the top choices for performance management software, especially for expanding enterprises and HR teams.

2. Namely: Best Overall

Namely’s performance management software stands out as an excellent option for mid-sized businesses seeking an all-encompassing HR solution. It includes key performance management features like goal tracking, alignment, 360-degree feedback, performance reviews, competencies, and recognition. Additionally, it functions as a recruitment tool by aiding in job posting and syndication, applicant tracking, background checks, and offer letters.

Namely proves to be an ideal choice for medium-sized businesses requiring a thorough human resources solution.

Features:

• Management of Documents: Organizing and handling various types of documents.
• Integration with Email: Incorporating or connecting with email systems for streamlined communication.
• HR and Payroll Services: Providing services related to human resources and payroll management.
• Managing Payroll: Handling and overseeing payroll-related processes.
• Task Organization: Structuring and managing tasks efficiently.
• Employee Database: Maintaining a comprehensive record of employee information.
• Mobile Application: Accessing and utilizing services or features through a mobile app.
• Onboarding Processes: Facilitating procedures for integrating new employees into the organization.

3. BambooHR: Best for Its Mobile App

BambooHR secures the 3rd position among the Best Performance Management Software options. This mobile application empowers managers to establish, monitor, and distribute goals for individuals and teams. Notifications promptly alert progress updates, new comments, and goal completion. Managers conveniently overview their team’s progress on a single screen. Moreover, it enables precise feedback collection and insights from colleagues.

BambooHR stands out as the prime selection for businesses seeking a performance management system integrated with a mobile application.

Features:

• Excellent features for tracking time and vacations.
• Robust and customizable employee onboarding modules.
• Simple creation of organizational charts.
• Employee performance functionalities, including a structured performance review process.

4. Paycor: Best for Templates

Paycor offers top-tier performance management templates designed to aid in goal setting, conducting performance reviews, and delivering engaging feedback to employees. Access to performance data and analytics allows for trend identification and areas requiring enhancement. Notable features encompass team insights, coaching strategies derived from employee ratings, and personalized tools. Moreover, seamless integration with Outlook and Gmail adds to its functionality.

For businesses seeking a performance management template, Paycor stands as the ideal choice.

Features:

• Paycor provides analytics and charts for simplifying the interpretation of workforce data.
• The software discerns the drivers influencing specific workforce trends and compares your business to industry benchmarks.
• Paycor’s powerful tools streamline employee recruitment, onboarding, time tracking, and payroll management.
• Both the Paycor web app and mobile app offer user-friendly interfaces.

5. Synergita: Best for Sentiment Analysis

Synergita’s performance management software emerges as an unparalleled choice for businesses focused on elevating employee performance through the utilization of AI-powered sentiment analysis. By harnessing the prowess of machine learning, this software delves deep into feedback data, meticulously evaluating performance while swiftly identifying potential issues right from their inception. Its expansive repertoire of features comprises the establishment of performance goals, fostering peer appreciation, facilitating impactful one-on-one meetings, conducting perceptive employee perception surveys, incorporating comprehensive 360-degree feedback mechanisms, and crafting strategic development plans.

Features:

• Continuous Feedback and Coaching: Enables continual feedback and coaching dialogues to foster ongoing improvement initiatives.
• Performance Assessment: Streamlines performance evaluations while establishing connections between performance and incentives.
• Talent Cultivation: Identifies individuals with high potential, nurtures their growth, and assists in succession planning endeavors.
• Data-Powered Decision-Making: Accesses data to facilitate informed choices for performance assessments, culture evaluations, and high-potential (HIPO) assessments.

6. Workday: Best for Skills Management

Developing the talent within your organization stands as a vital strategy in performance management, and Workday’s array of skills management tools simplifies this process. Through this tool, you gain the ability to pinpoint skill deficiencies, monitor employee advancement toward objectives, and devise comprehensive development strategies. Additionally, leveraging performance management and succession planning functionalities aids in the identification of high-potential employees and the creation of succession plans.

For businesses seeking performance management software with robust skills management capabilities, Workday proves to be the ideal choice.

Features:

• Personal Details: Modify your home address, phone number, and emergency contacts.
• Employee Benefits: Access information regarding benefits.
• Payment Records, Tax Forms, and Direct Deposits: Review payslips, and tax documents, and manage direct deposit details.
• Hour Records: Keep track of timesheets.
• Expenditures: Manage and record expenses.
• Interactive Organizational Charts: Access and interact with organizational charts.
• Leave Management: Handle requests for time off.
• Employee Performance Appraisals: Access and conduct performance reviews.

7. PerformYard: Best for Continuous Feedback

PerformYard secures the 7th spot among the listed performance management software options. It serves as a robust choice for businesses striving to elevate performance and amplify employee engagement using continuous feedback. The platform’s user-friendly interface streamlines feedback collection and swift sharing, fostering prompt resolution of performance issues. Moreover, it offers various features such as goal management, reviews, reminders, and dynamic goal-setting abilities.

Features:

• Effortless creation of hierarchy and reviewer assignments
• Robust and adaptable goal-setting system
• Contemporary user interface
• Highly customizable

8. Engagedly: Best for Integrations

Coming in at number 8 on the list, Engagedly’s Performance Management Software is an optimal choice for businesses looking for third-party integration to monitor employee performance and link data. Performance data with other business systems. Included in these integrations are Google SSO, Okta, Personio, ADP Marketplace, Gusto, Slack, BizLibrary, and Paylocity. Additionally, it offers performance assessments, goal tracking, analytics, and in-depth features.

Features:

• Setting and aligning employee goals
• Immediate feedback and acknowledgment
• Tools for learning and development
• Assessing competencies and tracking skills

9. Reviewsnap: Best for Goal Setting

Reviewsnap performance management software presents a reliable option for businesses seeking to enhance employee performance through goal setting. It allows assigning values to SMART goals, task addition for goal achievement plans, attaching supporting documentation for goal progress, and accessing real-time data and analytics on goal performance. Additional features encompass performance reviews and 360-degree feedback.

Reviewsnap, part of Trakstar, follows on our list. The company website hints at an upcoming rebranding to “Trakstar Perform.” Specific details regarding these changes remain unclear at the time of publication.

Features:

• Managing Employees
• Handling Applications
• Reviewing Appraisal History
• Managing Compensation
• Employee Profiles
• Managing Feedback
• Managing Goals
• Setting and Tracking Goals
• Performing Ad hoc Analysis
• Generating Ad Hoc Reports
• Implementing Cascading Goals
• Tracking Competencies
• Creating Custom Rating Scales
• Designing Custom Review Forms

10. Trakstar: Best for Coaching

Coaching is a performance management strategy that can help employees improve performance and achieve their goals. Trakstar’s performance management software includes a coaching feature that first equips leaders with the skills needed to become great leaders, then leaders can help their employees in their career plans. Other features include SMART goals, real-time reporting, engagement surveys, and continuous feedback.

Trakstar is the top choice for businesses wanting performance management software with coaching tools.

Features:

• Performance Reviews: Unlimited reviews, customizable competencies and scales, and detailed metrics tracking.
• 360-degree Feedback: Gather feedback from internal and external sources, and manage reviewer control.
• Goal Setting/Management: Create and update multiple goals, SMART/cascading goals, and task management.
• Employee Engagement: Pulse surveys, opinion polls, manager check-ins, real-time dashboards.
• Succession Planning: Identify internal candidates using a performance and growth potential grid.

Compare Top Performance Management Software

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How To Choose the Best Performance Management Software

To determine the ideal performance management software for your needs, evaluate key features, reporting capabilities, its compatibility with your tech setup, and other relevant factors.

Essential Features

Key components within performance management software encompass goal establishment, structured check-ins, and diverse feedback channels. This software streamlines performance management by consolidating real-time data regarding employee objectives and their advancements. Structured check-ins, it ensure focused discussions between managers and employees, nurturing employee development and achievements.

Moreover, this software facilitates feedback receipt not just from managers but also from peers, customers, and other invested parties. Various feedback mechanisms, such as 360-degree reviews and individual meeting notes, enrich the array of feedback avenues within performance management systems.

Analytics and Reporting

Analytical and reporting instruments don’t just monitor software utilization; they also chart an employee’s advancement toward their objective(s). These usage analyses aid HR teams in evaluating the effectiveness of the performance management tool and determining potential avenues for maximizing its utility within the workforce.

Progress reports play a pivotal role in maintaining employee drive toward attaining their professional aspirations. They empower managers to discern high achievers from those facing challenges, enabling tailored support strategies for each category.

Integrations

The preferred performance management solution should seamlessly operate and communicate with other applications commonly used by your employees, like the learning management system. Without this integration, there’s a risk of duplicated or lost information, leading to user frustration when navigating multiple tools.

Ease of Use

Effortless usability is crucial for performance management software; otherwise, it becomes a hindrance, elongating critical processes like annual employee reviews. For instance, employees should seamlessly add and adjust their goals, while incoming managers must easily access notes from their employees’ previous supervisors.

Customer Support and Training

Utilize available demos and trials to explore the software, and engage the vendor regarding their customer service and implementation support. Additionally, customer reviews can offer valuable insights into how effectively the solution bolsters performance management procedures.

Free vs. Paid Performance Management Software

Performance management software that’s free tends to come with minimal features and often has limitations on user numbers. Conversely, paid versions offer more advanced functionalities, and the pricing structure may be contingent on the number of users.

Providers commonly present a range of pricing models, spanning from free options to “freemium” offerings and fully paid products. The free versions cater well to small businesses seeking fundamental features. However, as these companies expand, they might consider upgrading to the paid version for access to enhanced functionalities.

Cloud-based performance management software pricing models often include monthly or annual subscriptions, offering potential cost savings. On the other hand, on-premises software solutions typically involve a one-time licensing fee.

Performance Management Best Practices

Best practices in performance management encompass several key aspects:

• Establish Clear Goals: Collaboratively set SMART goals aligning with team and business objectives, ensuring they are easily measurable and trackable.
• Utilize Software Solutions: Employ software tools to facilitate structured and secure tracking of goals and performance for both managers and employees.
• Conduct Regular Check-Ins: Foster frequent bi-weekly touchpoints between managers and employees, addressing performance issues promptly, even outside formal review periods.
• Embrace 360-Degree Feedback: Integrate feedback from various perspectives, including peers, direct reports, customers, and stakeholders. This holistic approach provides a comprehensive view of an employee’s performance, moving beyond just the manager’s viewpoint. 360 feedback also guides one-on-one performance review discussions.

Frequently Asked Questions (FAQs)

Is performance management software secure?

Creators of cloud-based performance management software regularly release updates, including security patches, to enhance data protection. This continuous improvement strengthens security measures, safeguarding review notes and sensitive information. Consequently, cloud-based performance management software emerges as a more secure choice compared to paper-based or on-premises alternatives.

Does my company need performance management software?

While performance management can function without software, integrating software can automate and enhance the entire process. Opting for performance management software can be a beneficial solution for businesses seeking to elevate their performance management practices.

What are performance management software integrations?

Integrations refer to the connections established by performance management software with other business systems like HRIS or payroll software. These integrations serve to automate performance management procedures and enhance the precision of data.

What are some common problems with performance management systems?

Users often face issues like underutilization, misuse, bias, and lack of structure with performance management software. To address these, conduct regular check-ins alongside annual or semiannual reviews. Managers guide goal-setting for effective metric tracking. Using structured prompts helps identify performance patterns.

Why is performance management important?

Performance management software is crucial as it structures employee-manager meetings, aids in goal setting, aligns employee goals with business objectives, and helps managers cater to individual employee needs.