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Finding the best performance management software for your needs takes time and effort. You want software to help you measure long-term employee development, track goals, and provide continuous feedback, but the sea of options is endless. In this article, I'll help you make this choice easier by sharing my insights on the top performance management software based on my personal experience preparing over 1,000 performance reviews.

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Best Performance Management Software: Pricing Comparison Chart

This comparison chart summarizes pricing details for my top performance management software selections to help you find the best software for your budget and business needs.

Tools Price
Deel Flat rate user pricing, with a free version for businesses with up to 200 people
Performance Pro From $2 to $7/employee/month
Mitratech Trakstar Pricing upon request
Lattice From $4 to $11/user/month
PerformYard From $5-$10/user/month
Leapsome From $8/user/month
ClearCompany From $60/user/month (billed annually)
Paycor From $5/employee/month + $99/month base fee
Peoplebox From $7/user/month
Insperity Pricing upon request
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How to Choose Performance Management Software

Performance management software can help you streamline all aspects of your performance review process, including gathering feedback, tracking goals, and reviewing analytics. To help you figure out which performance management software best fits your needs, you need to pinpoint your key users and document their specific challenges first.

As you work through your own unique software selection process, keep the following points in mind:

  • What problem are you trying to solve - Start by identifying the challenges you're trying to overcome. This will help you clarify the features and functionality the performance management software needs to provide.
  • Who will need to use it - To evaluate cost and requirements, consider who will use the software and how many licenses you'll need. For performance management software, you'll likely want employee-level access for your entire workforce, with special access for your HR administrators and managers. Once that's clear, it's also useful to rank the needs of your different users to identify the key priorities for your power users, managers, and employees, to ensure they're all met.
  • What other tools it needs to work with - Clarify what tools you're replacing, what tools are staying, and the tools you'll need to integrate with, such as learning management systems, training management software, or feedback collection tools. You'll need to decide if the tools will need to integrate together, or alternatively, if you can replace multiple tools with an all-in-one performance management platform.
  • What outcomes are important - Review the capabilities you want to gain or improve, and how you will measure success. For example, you may want software to automate portions of the performance review process, so nothing slips through the cracks. You could compare software features until you’re blue in the face but if you aren’t thinking about the outcomes you want to achieve, you could waste a lot of valuable time.
  • How it would work within your organization - Consider the software selection alongside your existing workflows and systems. Evaluate what's working well, and the areas that are causing issues that need to be addressed.

Remember every business is different — don’t assume that a performance management system will work for your organization just because it's popular.

Best Performance Management Software Reviews

Here’s a brief description of each performance management software that showcases each system’s best features, plus screenshots to give you a snapshot of the user interface.

Best for continuous performance feedback via 1:1 meetings

  • Free demo available
  • Flat rate user pricing, with a free version for businesses with up to 200 people
Visit Website
Rating: 4.8/5

Deel's platform is focused on helping businesses manage their international workforce, handling everything from hiring global employees to managing contracts, compliance, and payments. It offers free HR software for businesses and the platform can also help organizations stay on top of their employee performance using their integrated tools for pulse surveys and 1:1 check-ins.

Managers can use Deel's Slack plugin to add more structure to their meetings with direct reports, ensuring employees can add items to their shared agenda as needed. These 1:1's will quickly become a touchpoint of continuous feedback, helping employees and managers address any roadblocks before they become performance blockers. To keep feedback flowing in each direction, Deel's plugin also concludes each 1:1 meeting with a post-meeting survey where employees can share actionable feedback about the meeting for future consideration.

You can also use Deel's plugin to collect employee feedback through surveys, including pre-made options to measure employee engagement and company confidence. Once that data comes back, HR teams can filter the submissions by department or location to uncover any problematic areas that need addressing.

Deel integrates with a handful of popular HR software systems, including Ashby, BambooHR, Expensify, Greenhouse, Hibob, Netsuite, Okta, OneLogin, Quickbooks, SCIM, Slack, Xero, Workday, and Workable. They also have an Open API that supports additional custom integrations as well. 

Best for evaluating individual competencies

  • Free demo available
  • From $2 to $7/employee/month
Visit Website
Rating: 4.4/5

Performance Pro is a performance management application for small to mid-sized organizations that integrates performance management with compensation planning.

Their platform offers comprehensive performance management features, including detailed performance appraisals with goals and competencies tracked individually. Separating these items allows managers and employees to zero in on specific skills to highlight areas of strength or to uncover weaknesses that need further skill development.

Performance Pro's software also includes 360-degree feedback collection tools, merit-based bonus modeling tools, and benchmarked salary data. Plus, you can customize your weightings and ratings, or take advantage of their built-in forms and templates.

An integration is available with Compease to help with merit-based compensation increases and planning. Integrations are also available with HCM or payroll software, though specific platforms are not named.

Best for collecting multi-rater feedback via survey

  • Free demo available
  • Pricing upon request
Visit Website
Rating: 4.3/5

Mitratech Trakstar is a cloud-based people management platform that helps organizations monitor and manage employee performance effectively. You can create a performance evaluation system that suits the needs of your business, using automated workflows, configurable forms, and evaluation templates to get your performance management program up and running fast.

Mitratech Trakstar’s data analytics allow managers to analyze performance trends and identify areas for improvement. Managers can examine an employee's progress in various areas, including skills development, project management, and overall task completion, and compare that progress against those in the same role or department.

The feedback process is customized for each employee, taking into account their strengths and areas for growth. This includes the ability to collect multi-rater feedback from a group of close colleagues, also called 360-degree feedback. The software also offers an employee self-review feature that allows employees to evaluate their own performance before they meet with their manager. This feature empowers employees to bring their own reflections to their review meeting, giving them the opportunity to share their accomplishments and challenges with their managers from their own perspective, leading to a more open and transparent feedback system.

Mitratech Trakstar includes evaluation templates that are designed to pinpoint critical performance indicators, which you can customize as needed. These templates make the review process faster and more consistent, helping managers provide feedback in a structured and comparable format. The software also assists in aligning employee objectives with that of the organization, making them feel more involved in the company's growth. In addition, Mitratech Trakstar also supports setting SMART goals, with the option to track and add comments for specific goals to support better data-driven feedback. 

Integrations are available with Google Workspace, Okta, and OneLogin.

Best for incorporating performance data from multiple feedback sources

  • Free demo available
  • From $4 to $11/user/month
Visit Website
Rating: 4.7/5

Lattice’s people management platform is designed to help organizations develop employees into high performers and with tools to help them set, monitor and achieve their personal and professional goals. In addition to their performance management module, Lattice also offers integrated solutions to manage objectives and key results (OKRs) and goals, employee engagement tools like surveys, pulses and eNPS ratings, and employee growth tools that help staff and their managers develop career growth plans and track skill competencies.

Lattice’s performance management software includes modern features such as continuous performance management feedback loops, 1:1 templates, and 360 degree feedback. This means performance reviews prepared within Lattice incorporate a blend of feedback sources from managers, colleagues, direct reports and the employee themselves, creating a well-rounded profile of how each employee is performing. Lattice also supports project-based reviews too.

Lattice integrates with many commonly used human resource information systems (HRIS), including ADP, BambooHR, Namely, Personio, Rippling, Workday, and Zenefits, as well as other popular software platforms such as Gmail, Outlook, Microsoft Teams, Slack and others.

Best for dedicated customer support to design your ideal performance review cycle

  • Free demo available
  • From $5-$10/user/month
Visit Website
Rating: 4.8/5

PerformYard’s performance management software offers flexible features for HR, while creating a simplified employee experience for your staff. Their platform gives HR teams the tools they need to build out their performance review strategy, including 360-degree reviews, project-based reviews, custom rating scales, continuous feedback, and cascading goal structures. Meanwhile, employees benefit from a streamlined performance review process focused on effective discussions and delivering quality feedback.

In addition to your annual performance review cycle, PerformYard can also help you run regular check-in meetings, capture continuous feedback, recognize staff achievements, and document employee goals. PerformYard also provides a dedicated customer success manager to each new customer, to help you design an effective performance management cycle that works best for your organization’s needs.

PerformYard integrates with ADP, BambooHR, GSuite, Gusto, Microsoft Office 365, Microsoft Teams, Okta, OneLogin, Slack, Rippling, Paycom, Paylocity, UKG, and Workday.

Best performance management software for integrated goal management

  • 14-day free trial
  • From $8/user/month
Visit Website
Rating: 4.8/5

Leapsome is an all-in-one people management platform with modules for performance management, learning management, strategic alignment, and employee engagement. Used by companies like Spotify, Mercedes Benz, and Bolt, their software supports a continuous cycle of performance management alongside personalized learning plans that power employee development over time.

Their performance review cycles are fully customizable and easy to set up, and can be scheduled to automatically recur at predetermined timelines (e.g., quarterly, semi-annually, or annually, or even for closing off probationary periods). Key features include 360-degree feedback (including anonymous feedback), expert question templates, skill frameworks, development paths, automations, and powerful analytics. Leapsome also includes OKR software to help manage goals and objectives at the company, team & individual level too, as well as helpful visuals like goal trees.

Leapsome integrates with Active Directory, ADP, BambooHR, GSuite, HiBob, Jira, Microsoft Teams, PayFit, Personio, Rippling, Slack, and others.

Best for automatically scheduling performance review cycles

  • Free demo available
  • From $60/user/month (billed annually)
Visit Website
Rating: 4.6/5

ClearCompany offers an end-to-end talent management solution that links their applicant tracking system (ATS) to their onboarding process, with additional modules for performance management, workforce planning & analytics, and employee engagement. Their software is also mobile-friendly, making it a good choice for teams that don’t work at desks.

Their easy-to-use employee performance review software lets you quickly set up performance review cycles using custom scoring tables, weighted sections, free-form response fields, and custom scheduling automations. You can also use ClearCompany to collect 360-degree feedback, schedule 30-60-90 day reviews for new hires, or conduct competency and role-based reviews.

ClearCompany is best for companies based in the U.S. and Canada.

ClearCompany integrates with 100+ commonly used software tools including Absorb, ADP, BambooHR, Canada SHL, Ceridian, CoAdvantage, eSkill, Gmail, Office 365, Okta, OneLogin, and UKG, as well as many additional tools for recruiting, background checks, and skill assessments too.

Best for managing performance and pay

  • 90-day free trial + free demo available
  • From $5/employee/month + $99/month base fee
Visit Website
Rating: 4.1/5

Paycor is a complete Human Capital Management (HCM) software. It facilitates several core HR functions, including performance management. Its other capabilities include payroll and benefits management, learning and training management, and employee engagement tracking.

When it comes to managing employee performance, the system offers a variety of tools you can use. First, it has 1-on-1 meeting capabilities for ongoing performance discussions between staff and their manager. It also has a goal setting tool you can use to set employee performance and growth goals that align with company objectives. You can also set up career trajectories and learning and training programs in the platform to help employees grow at your organization.

As for compensation management, you can craft a complete pay structure for your organization in the platform. This helps create clarity and transparency around pay across your company. People will understand how they can develop and get promoted, and the pay increase that will come with that growth.

The software's integrations include other digital workforce tools like HireTech, Emburse Certify, Zillion, Points North, FMLA, Tapcheck, Instant Pay, Sterling, Wageworks, and Ignite. Plans start from $5 per employee per month, with a $99 base fee. A 90-day free trial is available.

Best performance management & OKR software that links individual performance to company-wide goals

  • 14-day free trial
  • From $7/user/month
Visit Website
Rating: 4.7/5

Peoplebox is an OKR software with performance management features that are ideal for growing companies. Their software supports continuous feedback through its performance review dashboard, summary reports, employee pulse surveys, and one-on-one meeting tools. Peoplebox was specifically designed to help growing startups tackle performance management, with ease of use in mind.

Peoplebox’s performance management features help HR and managers ensure that employees are performing well and gives them a way to link individual performance to company-wide goals and OKRs. Their system also includes a 360-degree performance review process that asks employees to write reviews for themselves, their managers, and their peers to help organizations collect objective feedback on other people’s performances.

Other features include traditional performance review cycles, review summary reports, and goal-tracking, plus real-time visibility and auto-reminders for managers and employees to keep review cycles running on track.

Integrations are available with a number of tools, including Asana, BambooHR, Google Sheets, Google Workspace, Microsoft Office, Microsoft Teams, Slack, Zoho People, and others.

Best performance management solution for SMBs

  • Pricing upon request

Insperity is an all-in-one HR software solution that offers a range of features including performance management.

One of the standout features of Insperity's performance management system is the ability to create and customize review templates. This allows you to tailor performance reviews to your organization's specific needs and goals. Insperity also makes it easy to set up and track individual employee goals and align them with the organization's strategic objectives.

Another useful feature is the real-time feedback feature that makes it easy for managers and their team members to give and receive feedback throughout the year, not just at review time. This allows managers to provide more targeted coaching and support to employees, which can lead to better performance outcomes.

Insperity integrates with TurboTax, GoodJob, Indeed, Zoom, Microsoft Teams, GoToMeeting, Adzuna, QuickBooks, Sage Intacct, NetSuite, BambooHR, Salesforce, Taleo, Workday, Zenefits.

Other Performance Management Software

Here are a few more worthwhile options that didn’t make the best performance management software list but are still worth checking out:

If you still haven't found what you're looking for here, check out these other related tools that we've tested and evaluated:

Selection Criteria for Performance Management Software

Selecting the best performance management software for this list required a deep understanding of the performance review process and how common pain points can be alleviated by choosing the right tool. Drawing on my personal experience preparing over 1,000 performance reviews, I developed a comprehensive approach to evaluating these tools. My experience also made it easier to pinpoint the features that add a lot of value and ensure a smooth and unbiased evaluation process — features I wish I'd had in the past!

Here's a summary of the main features I evaluated to create this list:

Core Performance Management Software Functionalities (25% of total score): To be considered for inclusion in my list of the best performance management software, the solution had to fulfill the following basic functionalities:

  • Either standalone performance management features, or the same functionalities as a module within an HCM, HRIS, or HRMS application
  • The ability to track and store performance management data over time
  • Comprehensive performance reviews and professional development plans that align with individual and company growth goals
  • Tools to facilitate goal-setting processes that align with organizational objectives
  • Mechanisms to gather and share continuous, real-time feedback between employees and managers
  • Built-in reporting and analytics capabilities to save managers and HR professionals from the hassels of manual data calculations (my biggest pet peeve of all!)

Additional Standout Features (25% of total score): To help me hone in on the best performance management software available, I also took note of any unique features, including:

  • Innovative feedback mechanisms that offer unique ways for peers and managers to provide feedback, such as gamification or social recognition
  • Advanced goal-tracking abilities that allow for dynamic goal setting and adjustment, reflecting real-time changes in priorities or objectives
  • Deep analytics and insights that go beyond basic analytics, like predictive performance modeling or personalized development recommendations
  • An integrated learning management system to create a direct link between performance gaps and learning opportunities
  • Flexible customization options that allow you to alter the program design to fit your unique organizational structure, culture, or processes

Usability (10% of total score): To evaluate the usability of each performance management tool, I considered the following:

  • An intuitive design that simplifies navigation and task completion
  • A clean, user-friendly interface that you can customize with your company branding to enhance the user experience
  • Quick access to essential features without overwhelming users
  • Automated workflows to ensure no performance reviews slip through the cracks
  • Role-based access control that is easy to configure, ensuring users only see relevant features and information

Customer Onboarding (10% of total score): To get a sense of each software provider's customer onboarding process, I considered the following factors:

  • Quick setup processes and clear guidance for first-time users, including customizable templates
  • The availability of training materials such as videos or interactive tutorials
  • Support for migrating historical data from previous systems into the new performance management platform

Customer Support (10% of total score): To evaluate the level of customer support each vendor offered, I considered the following:

  • The availability of multiple support channels, including email, phone, and chat
  • The existence of a self-service knowledge base, FAQ repository, or other self-help resources to speed up troubleshooting
  • The overall quality, responsiveness, and helpfulness of the support team during customer onboarding and post-purchase, as inferred from customer reviews

Value for Price (10% of final score): To gauge the value of each software, I considered the following factors:

  • The availability of free trials or demos to test the software before purchasing
  • Transparent pricing models that clearly explain which features are included at each level
  • Tiered pricing plans that cater to different business sizes, from small to medium-sized businesses (SMBs) up to enterprise-level organizations

Customer Reviews (10% of final score): Evaluating customer reviews is the final element of my selection process, which helps me understand how well a product performs in the hands of real users. Here are the factors I considered:

  • Whether a product has consistently high ratings across multiple review platforms, indicating a broad level of user satisfaction
  • Specific praises, criticisms, or trends in customer feedback that indicate the software's strengths or areas for improvement
  • Whether customer feedback specifically mentions issues with ease of use, customer support responsiveness, or lacking features
  • Any testimonials highlighting specific benefits or improvements experienced by users

By using this assessment framework, I was able to identify the performance management software that goes beyond basic requirements to offer additional value through unique features, intuitive usability, smooth onboarding, effective support, and overall value for price.

Performance management looks pretty different today than it did a few years ago. More and more, organizations are opting to implement continuous performance discussions in place of annual reviews, and holistic 360-feedback forms in replace of top-down evaluations. And the software that runs these performance management tasks is keeping pace!

Today's performance management software not only streamlines performance evaluations but also directly impacts employee engagement, retention, and development. Understanding how these software solutions are evolving can significantly enhance the effectiveness of talent management strategies. With that in mind, here are some emerging trends cropping up in these platforms:

  • Continuous Performance Management: While it's not a brand-new concept, continuous performance management continues to be a leading framework for software solutions. These platforms are swapping out annual review structures for ongoing feedback models, and implementing additional tools like:
    • Goal Tracking: Provides clear, measurable objectives, ensuring employees are aligned with company goals.
    • Development Plans: Facilitates personalized employee growth paths, enhancing skill development.
    • Skills Mapping: Spots skills overlaps and gaps across teams, departments, and the organization, facilitating cross-functional development and succession planning.
  • Peer-to-Peer Feedback: In collaborative work environments where teamwork and cross-functional projects are common, gathering insights from peers is integral for effectively evaluating employee performance—not to mention eliminating bias. 360 feedback tools offer a more comprehensive view of an employee's performance and contributions. This leads to:
    • Holistic Performance Insights: Encourages a fuller understanding of an employee’s impact, beyond the perspective of just managers.
    • Increased Engagement: Fosters a culture of open communication and collaboration, leading to higher employee engagement.
    • Empowered Employees: Gives employees a voice in the performance management process, enhancing their sense of ownership and responsibility.

These trends in employee performance management software reflect a broader shift towards more holistic, data-driven, and personalized approaches to managing and supporting employees. Incorporating these trends into your performance management strategy can significantly enhance employee engagement, performance, and retention.

What is Performance Management Software?

Performance management software are tools that organizations use to simplify the performance review process, set and track goals, analyze productivity, record achievements, and plan for the future. They also incorporate modern elements like collecting 360-degree feedback from team members, continuous feedback loops, and one-on-one check-in tools. They can also assist with succession planning by identifying skill gaps that need to be addressed for long-term strategic planning.

Performance management software offers numerous benefits, including improved employee performance, increased productivity, and better goal alignment across your organization. You can also use these powerful HR tools to automate all aspects of your performance review cycle, from tracking and data analysis to scheduling the review meeting itself, saving your HR teams a lot of time.

Features of Performance Management Software

Performance management software can do a lot of the heavy lifting when it comes to running an efficient performance review process. Here are the features I consider essential when reviewing performance management software:

  • Continuous Feedback Mechanisms: This includes a whole host of features, like 1:1 check-in templates, tools to request feedback from colleagues, project-based feedback, or public praise and employee recognition tools. The idea behind all these features is to make feedback a more regular occurrence, instead of saving suggestions up for an annual review.
  • 360-Degree Feedback: This modern element of performance management is designed to solicit feedback from multiple sources—managers, colleagues, direct reports, and the employee themselves—to produce a well-rounded picture of an employee’s performance.
  • Goals & OKRs: These add granular focus to an employee’s work performance, giving them specific targets to aim for and measure progress against. They are also a powerful way of building a company culture of high performance since individual objectives are directly linked to top-level organizational goals.
  • Strategic Alignment Tools: These features often go hand-in-hand with goals & OKRs, but strategic alignment tools are an important way to show employees how they’re contributing to the company’s overall success. This is often demonstrated through visual elements such as cascading goals, goal maps, or goal trees that link smaller tasks to big-picture objectives.
  • Career Development Plans: Since every employee always has their eyes on their future, career development plans are an important part of performance management since they outline a clear path forward to achieving each individual’s career aspirations. These employee development resources can also assist with long-term succession planning too.
  • Assessment Ranking Tools: The best performance management systems offer users a variety of assessment tools, such as 9-box matrices, skill tracking frameworks, competency grids, or role-based assessment benchmarks.
  • Automations: These are features that help companies execute their performance review cycles at scale by automating time-consuming processes like scheduling review dates, sending out reminders, or requesting additional feedback.
  • Notifications: These help you improve your workflows to ensure no one’s performance review falls through the cracks. With notifications in place, your managers will always know when performance reviews are coming up or overdue. Similarly, your HR team will also be notified whenever system data is updated, so they can keep tabs on all aspects of the process.
  • Analytics and Reporting: Performance management software removes the need for manual calculations thanks to integrated analytics and reporting features that highlight performance trends and development opportunities. Data-driven decisions can then be made to enhance individual and team performance over time.
  • Mobile Accessibility: Investing in a performance management platform that supports mobile access is important as it allows for timely feedback, provides a better user experience, and supports remote or deskless teams.

The features are crucial for providing continuous feedback, tracking goals, and supporting long-term employee development. By prioritizing software with these features, you'll be able to create a more engaged, motivated, and high-performing workforce without placing heavy demands on your HR staff.

Benefits of Performance Management Software

Performance management software can serve as a cornerstone for your long-term employee development processes, helping your staff achieve excellence while freeing your staff from typically time-consuming manual processes. By investing in the best performance management software for your needs, you can expect to gain the following benefits:

  • Streamlined Performance Review Preparation: Automation reduces the time and effort required to complete assessments, making performance evaluations less of a chore and more of a growth opportunity. Using automation tools to prepare performance reviews also reduces the likelihood of human errors too.
  • Improved Quality of Performance Appraisals: By digitizing and streamlining the appraisal process, and incorporating feedback from multiple sources, the software ensures a fair and accurate assessment. This objectivity increases employee trust in the performance evaluation process, leading to higher morale and motivation.
  • Increased Employee Engagement: Recognizing achievements and addressing areas for improvement keeps employees motivated and engaged in their roles.
  • Better Long-Term Employee Development: By focusing on skill gaps and personalized development plans, the software also helps employees grow professionally.
  • Improved Retention and Talent Management: Identifies high performers and potential leaders. By recognizing and nurturing talent, organizations can improve retention rates and plan for succession more effectively.

Choosing the right performance management software can transform how organizations approach employee development and performance monitoring. As you can see, the benefits extend beyond mere administrative convenience, touching on crucial aspects like engagement, career development, and retention.

Costs & Pricing for Performance Management Software

Performance management software comes in different plans to meet the diverse needs of organizations of all sizes and types, from small startups to large enterprises. The cost for the software in this list will differ depending on whether it's a performance-focused module within a larger HR management system

In the table below, I've broken down the common plan options, their average pricing, and the features typically included in each to help you make an informed decision.

Plan Comparison Table for Performance Management Software

Plan TypeAverage PriceCommon Features
Free$0Basic performance evaluations, goal setting, and a limited number of users
Basic$4-7 per user/monthEnhanced performance evaluations, goal tracking, feedback tools, basic analytics, and customer support
Professional$10-20 per user/month360-degree feedback, advanced goal management, performance analytics, integration capabilities, and increased customizability
EnterpriseCustom pricingTailored solutions, advanced analytics and reporting, unlimited users, premium support, and comprehensive integration options
A breakdown of plan types, costs, and features for performance management software.

When considering which plan to select, evaluate your current and future needs, and the scalability of the software as your organization grows. If you're running a small business, you may be able to get away with a free or basic plan with limited features. However, paid plans will always offer more sophisticated features like advanced analytics or comprehensive integration capabilities.

Here are several reasons why you may want to opt for a more advanced performance management software plan:

  • Enhanced Reporting Needs: Basic plans often lack in-depth analytics. Upgrading provides comprehensive reporting features that help you make data-driven decisions.
  • Goal Alignment and Tracking: If you need more robust goal-setting and tracking capabilities, you'll likely need to upgrade to access those features. However, it's worth it to ensure that employee goals align with company objectives and gain tools to monitor progress.
  • Customizable Feedback Systems: As your organization matures, you might need more tailored feedback mechanisms. Advanced plans offer customizable feedback and review templates to suit your unique needs.
  • Increased Number of Users: Most basic plans limit the number of users you can have (including admin users and managers). As your company expands, you'll need to scale up to gain more user seats, plus more extensive features.

Ultimately, it's important to secure a plan that offers the features you require to satisfy your current needs and solve your challenges without exceeding your budget.

New & Noteworthy Product Updates

Below, I've summarized the most recent release notes and product updates for my top performance management software recommendations. Discover what’s now possible through new feature releases, improvements, and updates for web, desktop, and mobile apps. Learn what’s new, if it’s hot—or not, and why it matters for employee performance.

March 2024: Performance Software Updates

15Five Update Notes

15Five's latest update arms managers with the performance data they need to make appropriate compensation adjustments.

In March 2024, 15Five introduced a new feature called 15Five Compensation, which links employee performance data directly with compensation decisions, supporting a more dynamic and data-informed approach to salary management.

By helping organizations align employee pay with their performance outcomes, this update facilitates transparent and equitable compensation practices that are directly tied to individual and team achievements, making it easier for managers to administer and adjust pay based on clear metrics.

The value of this update lies in its potential to improve employee retention and motivation. Creating a clear link between compensation and performance shows employees that their contributions are recognized and rewarded, fostering a more engaged and productive workforce. This approach also improves fairness and transparency in pay-related decisions while boosting company-wide performance.

Verdict: Hot! This update closes the gap between performance and pay, improving motivation, transparency, and long-term retention.

Profit.co Update Notes

Profit.co's latest update helps HR administrators easily collect and monitor performance feedback from multiple sources.

In March 2024, Profit.co introduced a new Secondary Reviewer Assessment Summary Box feature (found within the HR Admin Panel of their performance module), improving the accessibility of this information for HR administrators.

By helping HR administrators easily access and manage secondary assessments, this new feature ensures a more comprehensive understanding of employee performance and areas for development.

Overall, this update enhances the efficiency of Profit.co's performance management system, aligning employee objectives with company goals. This is particularly crucial for large organizations looking to improve productivity and engagement through structured feedback mechanisms.

Verdict: Hot! This feature will help HR teams collect feedback from multiple sources more easily, making performance reviews more comprehensive.

Leapsome Update Notes

Leapsome's latest update helps HR administrators create more focused learning paths for their employees according to their roles.

In March 2024, Leapsome introduced a feature that allows administrators to connect learning paths with specific skills within the predefined Competency Framework. This integration is designed to enhance the relevance of learning modules by directly linking them to the skills they aim to develop.

This new feature ensures that learning paths are focused on developing the specific skills employees need for their current role or for future career progression. Administrators can customize access to these learning paths, making them available to all or exclusively to those whose roles require specific skills.

This is a valuable update since precise skill development enhances both employee growth and alignment with organizational goals. By making learning paths more relevant and directly connected to necessary competencies, Leapsome helps organizations ensure that their training efforts support both personal and company-wide development objectives.

Verdict: Hot! This feature adds a new layer of precision to performance-related skill development, which is an obvious win for employees and employers.

February 2024: Performance Software Updates

ClearCompany Update Notes

ClearCompany now offers a native payroll integration with UKG Ready and Paylocity, as of February 2024.

On February 22, 2024, ClearCompany launched new payroll integrations with UKG Ready and Paylocity, extending the reach of their talent management platform. These integrations sync employee data automatically between ClearCompany's system and the payroll providers, enabling bidirectional data exchanges and ensuring accurate and up-to-date data in both paired systems.

For existing ClearCompany users, these new integrations reduce manual efforts, such as updating changes to employee data in multiple systems, giving HR teams more time to focus on strategic talent management instead of data management.

Verdict: Not hot. While new integrations are always appreciated, these particular integrations won't impact the performance management process.

Paycor Update Notes

Paycor users can now analyze key employment metrics against industry benchmarks for compensation and other factors.

On February 6, 2024, Paycor announced the launch of two innovative tools: Pay Benchmarking and Labor Forecasting. These tools are designed to aid HR and business leaders in making more informed decisions around compensation and workforce planning.

Pay Benchmarking helps leaders base compensation decisions on up-to-date market data and industry standards, ensuring fair and competitive pay rates. As part of this update, Paycor regularly refreshes salary data for approximately 10 million jobs across the US, with data acquired through a partnership with Visier. In addition, the new Labor Forecasting tool helps businesses create optimal staffing schedules that align with anticipated business demands, improving operational efficiency and customer service.

By incorporating these tools, businesses can achieve pay equity, and optimize labor management, which are both critical to maintaining a competitive edge in today's dynamic market environment.

Verdict: Not hot. Don't get me wrong — these are great new additions to Paycor's HCM, however, they don't specifically relate to performance management.

Frequently Asked Questions

Do you still have general questions about performance management software and what it has to offer? Take a look through these answers to frequently asked questions to set yourself straight:

How does performance management software work?

Performance management software helps managers by adding structure to the traditional performance review process. They automate the process of tracking key performance indicators (KPIs) or other specific metrics according to each team member’s job description. When set up effectively, these powerful HR tools track these items automatically and compile the final results into performance reports on a quarterly, semi-annual, or annual basis.

Performance reviews are an essential component of talent management, and the software is a modern solution for running performance review cycles successfully. They can also handle basic functions like scheduling, tracking, and data analysis, and incorporate modern elements like 360-degree feedback and continuous feedback loops.

What are the goals of performance management software?

The end goal of performance management software is to both help employees document their wins and successes and uncover any areas where they could potentially improve. Many of these systems also integrate with other HR solutions for skill building, learning & development, and compensation. In addition, performance management software can also help organizations flag their top performers with the most potential for succession planning purposes.

Performance management software also helps to ignite employee productivity and ensure employees are aligned with their company’s organizational goals. That’s why it’s common to find goal & OKR (objectives and key results) tracking features integrated within many performance management software solutions. Systems with these additional features help managers track team goals as well as individual goals, to ensure all parties are striving for the same end results.

If you’re interested in learning how high-performing companies capitalize on the OKR framework, see What are OKRs and How Can You Use Them.

Why is performance management important?

The research is clear: employees want feedback! In fact, 65% of employees desire more feedback than they’re already receiving.

Regular performance-based feedback can improve your employee’s engagement and reduce your employee turnover rate. Recent research has shown that organizations that provide regular employee feedback have a 14.9% lower turnover rate than organizations that don’t provide regular feedback.

Similarly, employees who receive regular feedback are motivated to work harder, whereas those who don’t are actively disengaged from their work. Consider these stats from the same study:

  • 69% of employees admit they would work harder if their efforts were recognized through feedback.
  • 98% of employees disengage from their roles when receiving little or no feedback!

With that in mind, it certainly makes a strong case for prioritizing performance management within your organization. Unless, of course, you want an unengaged and underperforming workforce!

Still not convinced? Take a look at Why is Performance Management Important? (+ Tactical Tips) for even more details.

What is continuous feedback?

Continuous feedback is a component of modern performance management that gives managers and employees opportunities to give and receive feedback regularly. This can be accomplished in many ways, but often includes daily or weekly feedback cycles through check-ins or 1:1 meetings.

Most performance management software includes templates for providing this type of continuous feedback, with prompts automatically rolled out so nothing slips through the cracks. The feedback is also recorded in the system, making it easy to refer back to during a more formal annual performance review too.

Research has shown the clear benefits of continuous performance feedback. Organizations that use a continuous feedback model outperformed their competition by 24%. Similarly, companies who use continuous feedback models are 39% better at attracting top talent, and 44% better at retention.

For more on this topic, see Continuous Performance Management: Why + How To Do It.

How do these platforms handle data privacy and security?

Performance management software typically prioritizes data privacy and security by employing encryption, secure data storage, and compliance with international standards (e.g., GDPR, HIPAA). These measures ensure that employee data is protected from unauthorized access and breaches. Providers often highlight their security certifications and protocols, demonstrating their commitment to safeguarding sensitive information.

Can these tools integrate with existing HRIS systems?

Yes, most performance management tools are designed with integration capabilities to connect with existing Human Resource Information Systems (HRIS), payroll, and other HR software. These integrations facilitate the automatic flow of data, reducing manual entry errors and improving efficiency. Many providers also offer API access and support for common third-party integration platforms (like Zapier), making it easier for organizations to maintain a unified HR technology ecosystem.

Other Performance Management Resources

If you made it this far, I'm guessing you're hoping to overhaul your performance management processes from the ground up. Luckily for you, we have a lot more resources to get you going! 

Here are some links to our best performance management resources aside from our software recommendations:  

If you're looking for another type of performance-related software, look no further. Here are some links to other related lists I've already created for you:

Final Thoughts

I hope this article explained the clear benefits of performance management software and why it's so important. Using a system like this will take the stress of running a performance review cycle off of your shoulders. It will also create more transparency around how you're evaluating your staff, and motivate them to strive for the goals and achievements that matter the most in your organization.

Lastly, before you go, I please consider subscribing to our People Managing People newsletter too. You’ll gain access to our latest articles covering a whole range of useful HR-related topics, podcasts, and tools. 

Kim Behnke
By Kim Behnke

Kim Behnke is an HR Tool Expert & Writer for People Managing People. She draws on her 9 years of human resources experience and her keen eye for systematic processes to support her analyses of the top HR tools on the market. She is passionate about maximizing efficiencies and streamlining workflows to ensure internal systems run smoothly. Kim's HR experience includes recruitment, onboarding, performance management, training and development, policy development and enforcement, and HR analytics. She also has degrees in psychology, writing, publishing, and technical communication, and recently completed a Certified Digital HR Specialist program through the Academy to Innovate HR. When away from her desk, she can usually be found outside tending to her ever-expanding garden.