HR and non-HR professionals are in the profession because we love working with people, and performance management tools can help us do one of the most important and rewarding parts of our job: help people do their work better.
Employee performance evaluations are a crucial way to ensure effectiveness and productivity within the workplace. This is a form of performance management tool that assists in identifying areas of improvement to help streamline and target organizational goals.
Employment performance appraisals are just as helpful for employees themselves as they are for management. After all, how else would employees know where they can best address efforts for improvement? Plus, any employee review should spend some time praising the employee in areas where they have excelled, which is an important way to keep morale up.
This article will help you quickly evaluate the best performance management tools and other talent and development software applications.
Quickly Compare & Evaluate The 10 Best Performance Management Systems
What is the best type of performance management system? Is it one with a robust onboarding solution or something with engaging, interactive employee reviews? What exactly you need will be up to you. This list of performance measurement tools can help in your decision-making.
Best Performance Management Tool List
These are the top performance management solutions on my list.
Here are answers to some general questions before diving into the best performance management software.
What is performance appraisal?
Employee performance appraisal is a type of performance management process that assesses the productivity and effectiveness of an employee that serves both administration and development purposes. This type of performance appraisal process allows you to provide feedback and identify areas for improvement.
How much does a performance management system cost?
Pricing depends on the tool itself, although tools typically follow a pricing model of pay-per-user, pay-per-employee, or pay-per-appraisal. The cost per employee or user can range anywhere from $3 to $10 with implementation fees ranging from $800 to $2000.
How do performance management tools work?
Performance Management tools are a type of HR software that helps organizations track employee performance in a consistent and measurable way. It ensures that cross-functional departments are working effectively and collectively towards achieving the same goal. Having a performance management tool in place speeds up the performance process to deliver reports faster.
What are performance management techniques?
There are many performance management tools and techniques to ensure steady success within your organization. Such techniques include: setting SMART objectives, Performance Appraisals, Providing Coaching, Objective Management, Personal Development Plans, and Reward and Recognition.
Want more insights into the staffing and recruiting industry? Check out our other lists of staffing tools and info:
You can also find performance management modules in a lot of larger software suites designed for larger HR departments—check out the 10 Best Talent Management Systems.
Performance Management Tools Comparison Criteria
What are we looking for when we select performance management tools for review? Here’s a summary of my evaluation criteria:
User Interface (UI): Is it clean and attractive?
Usability: Is it easy to learn and master? Does the company offer good tech support, user support, tutorials, and training?
Features & Functionality:
Review and Feedback – Are there pre-built evaluation templates to help with the review process? Is the employee performance review engaging and flexible? Do is there a way to positively call attention to top performance?
Training & eLearning- Does the software have the means to create and implement training/eLearning courses for employees? Is content creation easy? Do any courses come with the software?
Improvement Plans- Does the software have the capability to design and execute performance plans? Does it offer templates with which to do so?
Reporting and analytics – Are the reporting tools robust, customizable, flexible, and visually appealing? Can they be used to provide employees with relevant performance metrics?
Integrations: Is it easy to connect with other tools? Any pre-built integrations?
Value for $: How appropriate is the price for the features, capabilities, and use case? Is pricing clear, transparent, and flexible?
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Overviews of the 10 Best Performance Management Tools
Keep reading to get a basic outline of each of the top performance management tools on this list. I will go over their strengths and weaknesses as well as general features and software pricing.
1. Factorial – Easily manage and evaluate employee performance with customized questionnaires and assigned reviewers.
Factorial lets you track company performance management with custom reports, add feedback in an employee’s portal, and send instant notifications to participants. The Factorial performance management system has a web-based solution as well as iOS and Android smartphone apps.
Factorial connects with all sorts of different add-ons and tools to ensure your performance management system integrates with your day-to-day workflow tools. An account with Zapier will unlock hundreds of connector apps; thus, this tool scored highly in the Integrations review.
Integrations include Slack, Google Calendar, Outlook, Gmail, and hundreds of available tools through a Zapier account.
One con of this software is that there are a few limitations that might slow you down a bit; for example, vacation requests cannot include partial days without entering a second item – one for the full days and one for each partial day(s).
Factorial starts at $32.50/user/month and has a free 14-day trial.
2. Employment Hero – Communicate and engage with your team using peer-to-peer recognition and user happiness surveys.
Manage HR, payroll, performance, learning, recognition, and benefits easily with Employment Hero’s integrated platform. Features include paperless onboarding, online training checklists, automated induction, performance review templates, and cascading goals.
Employment Hero scored the highest in Value for Cost, per the aforementioned evaluation criteria, as it not only has a modest monthly per-user cost but it also offers a freemium subscription plan.
Integrations include Xero, MYOB, KeyPay, JobAdder, QuickBooks Online, and GO1.
A downside of this tool is that some communication tools are limited to specific scenarios; for example, staff can use the company feed to “Shout Out” another employee but are not currently able to comment on announcements made by management in that same feed.
Employment hero starts at $6/user/month and has a freemium version of the software.
3. SAP – Reduce attrition, retain and develop employees, drive engagement, optimize benefits, and increase productivity.
SAP is an intelligent ERP featuring AI and robotic process automation (RPA) capabilities, embedded analytics, and industry best practices. Their human resources and people engagement tools include software for performance, compensation, learning, and succession/development.
A standout feature of SAP is the flexibility of the program. Any company can completely customize their SAP ERP arrangement to make sure they are getting all the functionality they need by integrating their various process modules.
SAP offers digital content packages with APIs, pre-packaged integrations, and sample apps from SAP and select partners, which can be viewed via their SAP API Business Hub.
The over-$100 per user price tag lands SAP at the higher end of the pricing scale for performance management software, which lost them a few marks in the review consideration for Value for Cost.
SAP starts at $108/user/month and has a free 30-day trial.
4. Traqq – Best performance management tool for remote work
Traqq is a performance management tool for monitoring employee performance and recording billable hours. The tool includes time tracking capabilities and takes screenshots and screen recordings to ensure employees are completing productive work. Logged hours can be manually edited as well.
It also logs activity levels and website/app usage. At the end of the day, week, or month, users can review the dashboard to see detailed performance stats and timesheets. The dashboard is intuitive, and the desktop widget is user-friendly.
Traqq also promotes ethical monitoring. It intentionally reduces the quality of the collected screenshots and video clips to prevent sensitive and personal information from being visible. So, anyone with access to the images won’t be able to read private messages and passwords. Instead, they will simply get a good idea of the person’s activity.
As of this writing, you can download Traqq and use all its features—including timesheet and performance reports—for free.
5. Oracle – Conversational UI, digital assistants, intuitive workflows, and self-guided transactions to increase productivity.
Oracle ERP’s performance management features include career development learning and succession planning.
One of the highlights of this tool is that it is robust and easily scalable, able to handle large amounts of data, and is flexible enough to accommodate any level of growth as your company or team expands.
Integrations include many first-party solutions for business processes as well as third-party apps like DocuSign, Facebook, Google Calendar, Twitter, Gmail, Mailchimp, Adobe Sign, LinkedIn, SurveyMonkey, Twilio, Eventbrite, Trello, Evernote, Google Tasks, Microsoft solutions, and more.
One con is that the pricing and payment system is not transparent or intuitive at all. They offer “pay as you go” or “monthly flex” pricing options but both are hard to navigate and difficult to understand at a glance.
Oracle starts at $1000/month and has a free 30-day trial.
6. PeopleStreme – Align organizational objectives with employees’ skills/competencies for personally-tailored development plans.
PeopleStreme performance management software allows you to manage performance development, goal setting, and alignment of your employees with the strategic plan to drive better performance improvement. Access 1 on 1 session and feedback and real-time reporting.
PeopleStreme has a sleek, modern, and intuitive interface that scored them highly in the UX category of the evaluation criteria. Everything from the color scheme to the charts is visually appealing and the app will look right at home on any smartphone or tablet device.
Integrations include GO1, The Australian HR Institute (AHRI), Broadbean, CT Management, Indeed, Intercheck, Seek, and Workpro.
One downside to Peoplestreme is the system’s inability to identify the same candidate applying for multiple roles within the company. Duplicates like this are not grouped or flagged in any way, which can be a challenge to sift through.
PeopleSteme offers pricing upon request and has a free trial.
7. OrangeHRM – Continuous tracking of employees’ performance with advanced metrics such as OKRs to dynamic objectives.
With OrangeHRM’s HR performance management software, you can provide peer to peer feedback, alongside performance reviews, and encourage engaged employee growth. Features include advanced performance tracking by OKRs, revisions and 360° workflows, and more.
With a fair monthly price and a generous free trial, OrangeHRM evaluated well in the Value for Cost section of the review criteria. This performance management software would do well for small to midsized businesses looking to get a good deal.
Integrations are not listed on OrangeHRM’s website.
One weakness to be aware of is that OrangeHRM does not have any third-party integrations or add-ons available, which will be limiting for anyone hoping to connect with their preexisting workflow software.
OrangeHRM starts at $6/user/month and has a free 30-day trial.
8. Eloomi – Define, design, deliver employee appraisals with pre-made templates, and visually engaging evaluation forms.
Eloomi’s performance management platform consists of solutions for 360-degree feedback, digital to-do’s and reviews, targeted objectives and check-ins, performance appraisals, and automated checklists to streamline operational routines and optimization suggestions.
One of the best elements of Eloomi’s performance software is their learning capabilities, which are engaging whether you are an admin, content creator, or a student. They use top tier gamification strategies to activate learning.
Integrations are not listed on Eloomi’s website.
One critique to note is the lack of integration options for third-party software like accounting tools, chat, and project management. Thus, the tool lost some marks in the Integrations category of the review considerations.
Eloomi offers pricing upon request and has a free demo.
9. Kissflow HR Cloud – Get a 360-degree view of employee performance metrics: timeliness, work efficiency, and other KPIs.
Kissflow HR Cloud offers methods to collect, measure, and manage employee performance data to spot performance gaps, identify top performers, and reduce turnover. When dips or disappointments are spotted, leaders can choose to initiate a performance improvement plan.
Kissflow is flexible and easy to use with user-friendly performance management tools like qualitative reviews, performance action plan templates, and a tailor-made reward and recognition program. Thus, they scored well in the Usability review criteria.
Integrations include Quickbooks, Google solutions, DocuSign, Dropbox, Webmerge, SAP, Oracle, Salesforce, IBM tool, and more.
A modest critique of Kissflow HR would be that it seems to be more tailored for simplistic workflows; the more complex your workflow, the less likely this software will be the right choice for your business.
Kissflow HR Cloud starts at $690/month and has a free trial.
10. PeopleFluent – Custom workflows and evaluation forms designed to be configured for any device and are easy to use.
PeopleFluent is a set of digital tools designed to give structured feedback, measure performance based on preset qualifications, and achieve present goals. Features include robust goal setting, objectives, and competency management, and dynamic, continuous feedback.
This software does one thing really well: being able to create custom performance plans and workflows and offering high levels of flexibility, like the ability to move reviews ahead or backward in the workflow chain as needed.
The PeopleFluent LMS can integrate with any third-party systems via APIs. There is a built-in mechanism to allow real-time data import and export through the APIs, which are HTTP-based, and make use of widely-supported web data formats such as XML, JSON, Atom, and RSS.
People Fluent has a bit of a steep learning curve, as seen even in their integration options, all of which require some level of coding skill. This software lost a few points in the Usability segment of the evaluation criteria because of this.
PeopleFluent offers pricing upon request and has a free demo
Still haven’t found the right performance management tool for your team? Here are some performance software options that didn’t make the top 10 list but still deserve a special mention. Check them out!
ADP – Align individual, team, and organizational goals; optimize achievement via modern feedback, coaching, targeted training
Reflektive – Hone business results through goal alignment, gamified engagement, 1-on-1s, and other performance review check-ins, and data-driven feedback.
Culture Amp – Get a clear understanding of skills at the team and organizational level to help with strategic talent planning and learning and development programs.
Lattice – An organized way to reflect on individual performance and get formal feedback from peers and managers while tying individual goals to the overall company direction.
BambooHR – A modern approach to performance management and the latest tools for measuring engagement, like mobile-ready applicant tracking and automated onboarding.
Leapsome – Performance management and personalized learning designed around regular check-ins, managerial tools, and aligning your team around a mission.
Zoho – Zoho One offers 40+ integrated applications, of which you can also pick and choose what you need, including solutions focused on people, the workplace, and collaboration.
Engagedly – A tool that combines performance reviews, real-time feedback, ongoing check-ins, goals, 360 feedback, recognition, and social learning.
TrakStar – Easily manage performance expectations, set and maintain goals, and encourage real-time feedback between managers and employees.
15five – Tools for communication, alignment, and recognition through aligned OKRs, weekly check-ins, 1-on-1s, gamified engagement and congratulations, and self-reviews.
CakeHR – The CakeHR performance module lets users set relevant goals, keep track of progress, and align team efforts with your company vision.
PiiQ by Cornerstonr – easy-to-use performance and learning solution for small & medium businesses that could use automated performance reviews and development tools.
Namley – Develop your people through onboarding, goals, reviews; simplify assessment cycles with intuitive forms and manage goals from the company-level down to every employee.
What Do You Think About These Performance Management Tools?
Have you tried out any employee performance evaluation vendors listed above? What performance management software company do you prefer during your day-to-day? Let us know in the comments.
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