10 Best Performance Management Software Shortlist
Here's my pick of the 10 best software from the 20 tools reviewed.
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With so many performance management software available, figuring out which is best for your company is tough. You want software to provide continuous feedback, track goals, and measure long-term employee development, but you need to figure out which tool is best. 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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10 Best Performance Management Software 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.
| Tools | Price | |
|---|---|---|
| Trakstar | Pricing upon request | Website |
| Performance Pro | From $2 to $7/employee/month | Website |
| PerformYard | From $5-$10/user/month | Website |
| Primalogik | From $159/month for up to 25 users | Website |
| Paycor | From $5/employee/month + $99/month base fee | Website |
| Lattice | From $11/user/month | Website |
| Peoplebox | From $7/user/month | Website |
| 15Five | From $4/user/month (billed annually) | Website |
| Profit.co | From $7/user/month | Website |
| Kallidus Perform | Pricing upon request | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow 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.
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Deel
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Paycor
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.1 -
Paychex Flex
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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.
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.
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.
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, 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.
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 dedicated customer support to design your ideal performance review cycle
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 for advanced benchmarking and performance comparison tools
Primalogik’s employee performance management software includes a wide range of features that foster employee engagement and empower managers and their employees to reach their full potential. Through a combination of performance review assessments, 360-degree feedback, engagement surveys, employee goals and OKRs (objectives and key results), and instant feedback including 1:1 check-ins, Primalogik helps employees gain insight into their individual performance and uncover areas to make small improvements.
Their 360-degree feedback module makes it easy to solicit feedback from multiple sources. Admin users can select their own rating scales for their evaluation questionnaires, and determine the level of anonymity that will be applied to the feedback. Advanced features in this module include the option for managers and admin staff to launch feedback requests about their employees and solicit responses from specific co-workers, automatic reminders to provide feedback by a certain date, and real-time feedback tracking.
Once employee feedback is in the system, Primalogik has several tools to support deep analysis of the data. For example, their system allows managers to compare employees’ self-ratings side-by-side against other respondents' feedback. This helps identify any blind spots between where an employee believes they are, and what their co-workers have suggested.
As well, their Comparison Mode allows admin users to benchmark each employee appraisal and compare them across their workforce — a useful way of identifying their overall top performers or spotting potential company-wide skill gaps.
Primalogik integrates with ADP, BambooHR, Google Workspace, Microsoft Azure, and Okta. Their performance management software is also available in Spanish or French.
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.
Lattice
Best for incorporating performance data from multiple feedback sources
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 performance management & OKR software that links individual performance to company-wide goals
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.
15Five combines performance reviews, engagement surveys, OKRs, and a suite of other people development tools into one platform to help HR leaders make insightful decisions and take strategic action to support their organization’s growth. Their performance reviews include a focus on OKRs, goal setting, and long-term employee development, with helpful visual tools that make it easy to spot each employee's strengths and opportunities for improvement.
15Five’s platform follows a research-backed design meant to develop a personal growth mindset among employees. To achieve this, their platform gives managers a set of special tools to maintain high-performing teams and tips for how to encourage employees to self-actualize in their careers. Their system is also useful for succession planning as it can help identify future leaders early on in their careers. Both managers and HR administrators will also appreciate the system’s ability to send performance review reminders to ensure your review cycle stays on track.
15Five integrates with many popular HR systems, including BambooHR, Gusto, Namely, Sapling, Rippling and Workday. They also have a free mobile app for Android and iOS users too.
Best performance appraisal software with integrated goal-setting and task-tracking tools
Profit.co offers dedicated OKR software with additional modules for performance management, task management, and employee engagement. By linking your performance management process to individual employee’s OKRs, you’ll gain an unbiased picture of an individual’s performance, while also aligning their employee development goals with your corporate objectives. Their system also supports continuous performance management and customized review cycles, including annual, semi-annual, quarterly, or project-based review dates.
Some of the more advanced aspects of their performance management software include flexible competency mapping, assessment tools for senior management positions, customizable performance scoring options, a performance heatmap, and a customizable 9-box scoring matrix that compares potential vs. actual performance. Profit.co also has tools to collect 360 degree feedback from peers, craft career development plans, and track detailed task assignments, including by due date or priority.
Profit.co integrates with 40+ popular software applications including Chrome, Gmail, Google Calendar, HubSpot, Jira, Microsoft Teams, Microsoft Outlook, Salesforce, Slack, Snowflake, Wrike, Zendesk and many others. Or you can access additional applications by connecting a paid Zapier account.
Best for creating feedback surveys using a customizable questionnaire builder
Kallidus Perform is a cloud-based performance management solution that is equipped with various features and tools designed to facilitate the performance management process, continuous learning and development, and organizational objective tracking. The platform is ideal for midsize businesses and large enterprises.
In addition to creating custom employee surveys, company managers and senior leaders can add comments and recommendations, make progress updates, and deliver insights about their OKRs, all in real-time. They also have the ability to request, collect, and monitor informal feedback from employees, executives, and business partners. The cloud-based software gives users the ability to conduct formal assessments, schedule check-ins, keep track of ongoing objectives, as well as comment on and recognize employee progress.
Kallidus Perform’s 360 feedback feature allows managers to give and receive meaningful feedback continuously through multi-dimensional reviews. Multiple contributors, which include senior executives, managers, suppliers, and peers can comment and provide their feedback to help build an unbiased and detailed image of individual, team, and organizational performance.
The ability to personalize the employee development process is a significant factor in Kallidus Perform’s efforts to maximize their continuous 360 feedback strategy. The multi-rater reviews function is designed to give employees and teams the ability to identify their strengths, weaknesses, and areas for improvement. They can then utilize these insights to create a path to follow for sustainable learning and development and to increase performance.
Users looking to build continuous feedback surveys can choose from multiple templates. They can select rating scales and comment boxes that match their current requirements. However, they also have the option to create custom questionnaires for specific groups of responders and roles.
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:
- Inspire
Best for strategic goal alignment and 360-degree feedback
- bob
Best for continuous feedback and deep HR analytics
- Teamflect
Best for running your entire performance review cycle within Microsoft Teams
- Betterworks
Best for integrated modules covering goals & OKRs and employee engagement, plus coaching conversation tools
- Deel
Best for continuous performance feedback via 1:1 meetings
- GoCo
Best performance management software for small businesses
- Leapsome
Best performance management software for integrated goal management
- ClearCompany
Best for automatically scheduling performance review cycles
- Motivosity
Best for publicly recognizing top-performing employees with additional rewards
- Eden
Best performance management software for affordability, with advanced hybrid workplace tools
Related HR Software Reviews
If you still haven't found what you're looking for here, check out these other related tools that we've tested and evaluated:
- HR Software
- Payroll Software
- Recruiting Software
- Employer of Record Services
- Applicant Tracking Systems
- Workforce Management Software
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.
Trends in Performance Management Software for 2024
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 Type | Average Price | Common Features |
|---|---|---|
| Free | $0 | Basic performance evaluations, goal setting, and a limited number of users |
| Basic | $4-7 per user/month | Enhanced performance evaluations, goal tracking, feedback tools, basic analytics, and customer support |
| Professional | $10-20 per user/month | 360-degree feedback, advanced goal management, performance analytics, integration capabilities, and increased customizability |
| Enterprise | Custom pricing | Tailored solutions, advanced analytics and reporting, unlimited users, premium support, and comprehensive integration options |
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.
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
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
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
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
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
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:
- Why Is Performance Management Important? (+ Tactical Tips)
- How to Conduct a Better Performance Review
- Continuous Performance Management: Why & How To Do It
- 3 Ways to Optimize Performance Management in Your Org
- Top 7 Techniques for Effective Performance Management
- How to Choose the Right Performance Management System for You
- 5 Powerful Performance Review Questions to Tap Your Team’s Potential
- 54 Essential Performance Review Phrases and Best Practices
- 5 Simple Steps to Manage an Underperforming Employee
Other Related Software Reviews
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:
- Performance Appraisal Software
- Performance Management Tools
- Talent Management Software
- 360-Degree Feedback Software
- Employee Experience Software for Engagement & Performance
- Succession Planning Software to Develop Future Leaders
- Goal Setting Software for Keeping Teams on Track
- Productivity Tracking Software for Hybrid Teams
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.