Best performance management software in 2024
Performance management software helps business owners or HR personnel quickly and effectively manage employee performance. It generally allows you to set both organizational and individual goals, track KPIs, collect and provide continuous employee feedback and recognize employee accomplishments.
These tools provide the insight needed to fully understand how an employee is performing, what areas need improvement and who’s ready for a raise or promotion. Let’s take a look at our picks for the best performance management software so you can choose the right fit for your business.
360° Degree Review Feedback
Yes
Dedicated success manager
Included
Base monthly price
Not disclosed
On Mitratech Trakstar’s Website
Run any review process
Yes
Dedicated success manager
Included
Base monthly price attribute
$5-10 per person/month
On PerformYard’s Website
Methodology
To help small and medium-sized businesses (SMBs) choose the best performance management software, we evaluated 33 top providers and 55 distinct plan options using more than 1,900 data points to develop a ranked list. We assessed each performance management tool’s features and functionalities, value and pricing, support services and customer/user reviews. We then assigned our Editors’ Score to the top 15 options from our ranked list, before narrowing the list to the 10 best. Read our full methodology.
Zoho People
Best performance management software for small businesses
Why we picked it
Zoho People’s dynamic performance management product gives you a simple and streamlined way to assign goals, provide valuable feedback to your employees and create custom appraisals that encompass both self-reviews and multi-rater reviews from people who actually work side by side with the employee. The provider’s mid-tier Premium plan ($3.50 per user per month, dropping to $3 if billed annually) gives users access to all of its HR products (employee onboarding, time off management, shift scheduling and attendance marking to name a few), plus the performance management products.
Some of the most impressive features of Zoho People’s performance management platform include its 360-degree feedback (enabling feedback from employees’ coworkers as well as their managers), the nine-box matrix (providing clear insights into current performance and future potential), integration with the Xoxoday rewards and incentives platform, and a tool to manage salary increases.
Pros
- Automated performance appraisals
- Quick and simple feedback system
- Robust performance reporting
Cons
- Requires at least five users
- Slow loading speed cited by some user reviews
- Need mid-level Premium plan to access performance management tools
Who should use it
Zoho People is ideal for businesses that have at least a handful of employees, since it charges for a minimum of five users. It’s also a great option for businesses that want to consolidate their tools with one provider, as Zoho People is a subset of the Zoho suite of products that can help you manage everything from sales and marketing to finance and legal to human resources.
Keka HR
Best for larger businesses
Why we picked it
The easy-to-use interface and impressive product offerings make Keka HR a great option. Its performance management tools include 1:1 meeting tools, continuous feedback and flexible goal setting in addition to people and performance analytics, a skills matrix and an employee survey tool. It also offers some very unique tools like an employee expression wall, designed with a Facebook-like feel.
Keka HR is more expensive than many of its competitors, as performance management features aren’t included in its two lower-tier plans (Foundation and Strength). In its highest tier — the Growth plan at $22 per employee per month — users gain access to all performance management tools in addition to core HR and payroll functionalities. As such, we think this provider is best for larger businesses with larger budgets.
Pros
- Employee expression wall
- Private feedback and internal notes available for managers/leaders
- Payroll, benefits and onboarding included
Cons
- Not suited to smaller businesses
- Limited integrations (accounting software, only)
- Difficult to reach customer service according to user reviews
Who should use it
Offering a full suite of HR products (onboarding, payroll, etc.) in addition to its performance management tools, Keka HR is a great fit for those looking for an all-in-one HR solution, especially one that includes payroll processing. At $22 per employee monthly and with a platform that is “loved by teams with 100 to 10,000 employees,” according to its site, this provider is better suited to businesses on the larger end of the small and medium-sized spectrum, rather than small ones.
Lattice
Why we picked it
Lattice offers advanced features that provide insights beyond just simple data and numbers. The nine-box matrix compares an employee’s current performance with their potential to help gain an understanding of what future leaders you have among your team. Its 1:1 management tool (highly praised in user reviews) is another standout feature; it’s easy to use and intuitive, helping managers facilitate stronger relationships and set achievable goals with their employees.
Its entry-level plan ($11 per employee per month) gives users access to all of the performance management features, including performance and talent reviews, custom question templates, goals and OKR (objectives and key results) tracking, reporting and analytics, and even employee praise/recognition tools. In addition to its standard performance management tools, Lattice also offers add-ons that provide additional features geared toward employee engagement and growth (for an additional $4 per employee per month each) and compensation (for an additional $6 per employee per month).
Pros
- Personalized 1:1 agendas and tracking
- Nine-box matrix for assessing potential
- AI performance management tools available
Cons
- Engagement, growth and compensation tools are add-ons
- System can be hard to navigate according to users
- Online user reviews mention limited tool functionality
Who should use it
Lattice offers a wide range of features at a very mid-range price, making it a good option for many different businesses of all sizes and industries. Its intuitive 1:1 tool makes it a great option for teams looking to add more value and depth to the manager/employee relationship. The tool makes it simple for managers to understand their employees’ perspectives and work with them to achieve and track goals in a tangible way.
FlowyTeam
Best for customer satisfaction
Why we picked it
FlowyTeam offers a ton of great performance management tools that are easy to use and integrate into your everyday processes and loved by customers (in our research, it had the highest overall customer rating of any provider on our list). It offers OKR goal tracking, a 1:1 meeting tool (similar to a chat box that provides a simple way for managers and employees to communicate), 360-degree review functionality and an employee rewards feature.
Pricing starts at $5 per employee per month (dropping to $4.17 per month if paid annually) and includes access to all of the performance management tools. FlowyTeam also offers additional discounts for 50-plus users and has a “personal” account that is free.
Pros
- Well-reviewed by customers
- Multilingual support (29-plus languages)
- Discount for 50-plus users
Cons
- Pricing is a bit confusing (and not transparent if you have more than 250 employees)
- Doesn’t offer payroll or other HR tools
- Limited integrations
Who should use it
As part of our research, we looked at user reviews for each of the products on three of the most popular review aggregation sites. FlowyTeam was the most highly rated of all the providers on this list, indicating high customer satisfaction. Additionally, for businesses with 50-plus employees, the provider offers a discounted rate ($3.33 per user per month if paid annually).
AssessTEAM
Best for budget-conscious users
Why we picked it
AssessTEAM offers a large range of features at very competitive prices for businesses that have one through 500 employees. It has three plans; pricing starts at $3 per user per month and goes up to $5 per user per month (you can save 20% if billed annually). Included in its entry-level plan are 360-degree evaluations, goal setting for teams and individuals, and white-glove setup with unlimited phone support.
While there’s no nine-box matrix or OKR goal-setting option, AssessTEAM’s other evaluation and engagement products are on par with many of its competitors. The software integrates seamlessly with Google Workspace, Microsoft 365 and 200-plus other systems, making it simple to utilize the performance management tools while staying with the other tools you know and love.
Pros
- Simple and standardized pricing plans
- 24/7 customer support
- 200-plus integrations available
Cons
- Missing a nine-box matrix
- No training/learning management features
- System isn’t always user-friendly according to users
Who should use it
With flexible offerings at a low monthly price per user, AssessTEAM is a great option for organizations looking for a budget-friendly entry into performance management software. Its extensive system integrations also make it a great option for businesses that are already established with other tools and simply want to add performance management functionality.
Synergita
Best for the full performance management cycle
Why we picked it
Synergita provides tools and features for every step of the performance management process as laid out in its 16 performance management building blocks. It starts with a simple employee profile before moving to goals, progress tracking, check-ins and 1:1s, rewards and peer recognition, and performance reviews. The process continues with training, skill mapping, performance improvement plans, smart promotions and, finally, reporting and analytics.
Synergita has four different plans (Engage, OKR Growth, Perform Plus and All-In-One) that range from $2 to $12 per employee per month when billed annually. The first three plans focus on different aspects of performance management (engagement, performance and goal-setting), while the fourth plan combines them all.
Pros
- Comprehensive features
- AI-powered sentiment analysis
- Basic performance management tools available at $2 tier
Cons
- No live chat is available
- Reporting needs improvement per user reviews
- No learning management system
Who should use it
With features that cover the entire performance management process, from goal-setting to promotions, Synergita is a great option for businesses that want a broad tool (although its functionality isn’t as deep as others on our list).
It’s also valuable to note that Synergita highlights that its structured and transparent performance reviews are designed to fit millennial needs, making it a solid option for a younger or multigenerational workforce.
Motivosity
Best for employee rewards
Why we picked it
Motivosity’s software is focused primarily on rewards and recognition. While it offers many of the features that the other software on our list does — including a 1:1 tool, employee NPS and surveys, hiring support, etc. — the rewards program is definitely the standout offering. It takes a unique and modern approach to employee rewards with its ThanksMatters card, which gives employees instant access to financial rewards, and “trendy” gift cards (Amazon, Apple, Zappos, etc.).
The recognition and rewards tool starts at $4 per employee per month, with an available add-on for all employee insight tools for an additional $2 per employee. The pricing page has a free calculator that gives prospective customers the ability to enter user count and which tools they want to get a full understanding of pricing. It’s important to note, however, that there is a minimum $3,000 licensing spend to use their software (which is the equivalent of about 40-60 employees, depending on whether or not you want the insights add-on).
Pros
- Rewards card for immediate access to funds
- Free setup, implementation and onboarding
- Dedicated customer success manager for businesses with 25+ employees
Cons
- Requires minimum spend of $3,000
- Can’t sign up online
- System can be hard to navigate according to user reviews
Who should use it
Motivosity’s rewards marketplace offers everything from customized merchandise to Amazon and Apple gift cards. Its offerings make it a great option for employers looking for flexible and meaningful employee rewards that employees actually want to receive. However, if you’re a small company with just a few — or few dozen — employees, Motivosity’s $3,000 minimum may be too much.
15Five
Best for manager coaching
Why we picked it
15Five offers a host of features focused on employee engagement and performance, including all the tools you’ll need for employee surveys, performance reviews, goal management, and reporting and analytics. Its highest-level plan includes some basic tools to improve the performance of your managers, such as manager effectiveness assessments and training resources. Furthermore, 15Five offers a separate plan just for manager training and coaching that includes courses and group or 1:1 coaching sessions.
The provider’s engagement and performance plans start at $4 per employee per month (paid annually), increasing to $16 per employee per month for the highest plan. The manager training plans are more expensive (from $99 to $750 per manager per month), but might be a good investment if you’re looking to create a world-class management team.
Pros
- AI-assisted employee reviews
- Integrates with major HRIS platforms
- Manager coaching features in $16 plan
Cons
- Separate manager coaching plans are expensive
- Basic plan offers limited features
- Goal tracking is unorganized
Who should use it
If you want to focus on improving the performance of your management team and how they develop their direct reports, consider 15Five. It includes some basic manager training features in its highest-level performance management plan and has a separate set of plans called Transform focused solely on manager coaching and training. However, those plans can be expensive.
Trinet Zenefits
Best for customizable templates
Why we picked it
TriNet Zenefits is a household name that offers everything from payroll to risk mitigation, in addition to performance management tools on par with the other providers in our guide. Its customizable template library makes all of its feedback, 360 reviews and peer reviews simple and easy to use. The review template, for example, allows you to customize everything from the type of review to the distribution (who the review will be shared with), frequency and review dates.
There are three pricing plans (Essentials, Growth and Zen) that range from $10 to $33 per employee per month, with a 20% discount available for annual billing. The performance management tools aren’t available at the lowest tier, so to access those tools you must have at least the Growth plan ($20 per month per employee, or $16 per month when billed annually).
Pros
- Easily customizable templates
- Other HR functions available (time tracking, scheduling, etc.)
- Simple and intuitive interface
Cons
- Pricing has a five-employee minimum
- Must contact sales to purchase
- Some users mention inconsistent customer service
Who should use it
If you’re looking for easily customizable templates so you can create your own review types on your own schedules, TriNet Zenefits has what you need. The provider, which also made our list of best HR software, offers other HR features such as time tracking, scheduling, compensation management and even payroll processing on the highest plan. Keep in mind that pricing starts at five employees per month, so very small businesses might prefer a different provider.
Engagedly
Best for a large remote workforce
Why we picked it
With gamification, social collaboration tools and other collaborative features, Engagedly is designed to be a performance management tool for the modern workplaces, which includes remote workforces. The software allows you to manage the performance of your team, wherever they are located, in a fun and effective way with points, badges and a leaderboard.
Its base plan gives access to performance appraisal tools, real-time feedback, 360 reviews, surveys and other low-level performance management tools. There are three different add-ons available for rewards and recognition, growth and learning, and mentoring tools. Pricing is custom, so you must contact sales. However, there is a $5,000 annual minimum.
Pros
- Gamified platform for engagement
- Social collaboration and other remote-focused communication tools
- Collaborative goal setting
- Offers volume discounts
Cons
- Plans start at $5,000 annually
- Must contact sales for a custom quote
- Annual billing only
Who should use it
Businesses with remote workers should appreciate Engagedly’s features designed for communicating with and engaging employees wherever they are. However, with a $5,000 annual minimum, the provider may not be suitable for smaller businesses or businesses on a budget.
360° Degree Review Feedback
Yes
Dedicated success manager
Included
Base monthly price
Not disclosed
On Mitratech Trakstar’s Website
Run any review process
Yes
Dedicated success manager
Included
Base monthly price attribute
$5-10 per person/month
On PerformYard’s Website
Compare top performance management software
What is performance management software?
Performance management software helps business owners manage their employees’ performance by allowing them to track and evaluate progress toward goals and individual KPIs (key performance indicators), understand output and provide feedback to employees. When performance data is collected and organized in a useful way, it can help you better understand your employees, how your team is working toward broader company goals, salary requirements and even gaps in your workforce that you may not have known were there.
Benefits of performance management software
There are numerous benefits to using performance management software to help you manage your employees’ performance, including:
- Access to data: The extensive reporting options offered by many of these software packages help provide insights into your workforce that would be very hard to gather manually.
- Improved productivity: Establishing clear goals and having a tangible way to track progress and performance will often motivate employees to hit milestones and raise the bar.
- Better employee experience: Providing your team with well-rounded insights into their performance will ensure it’s very clear where they stand at any given time.
Essential performance management software features
While every performance management software offers something a little different, there are a few key features that business owners should be on the lookout for when considering what software to use, including:
- Continuous feedback: One of the most important components of performance management software is the ability to access performance data at any time. This provides both employers and employees with timely feedback and creates a proactive rather than reactive culture.
- Flexible goal structures: Every organization has different needs and will track goals differently. Some may find the most success with a SMART goal structure, while others may see success with OKRs or individual KPI tracking.
- Real-time data and reporting: Another key functionality is the intuitive, built-out reporting that provides employee performance data in real time, creating visibility and understanding across the organization.
Related: HR analytics: Key metrics and tips to get started
Methodology: How we evaluated performance management software
To help business owners, managers and HR teams find the best performance management software, we researched top performance management tools using a specific set of desired data points. After we collected this data, we narrowed our list to 33 unique providers based on five primary categories encompassing 36 different metrics. We weighted each metric based on what matters most for small and medium-sized businesses. Using the final score for each performance management tool, we selected the 10 that rose to the top for this list.
We assigned each performance management software an Editors’ Score encompassing four key areas before converting final scores to a star rating out of five. This score does not affect our selection methodology or assessment of key data points for ultimate list inclusion.
Here’s how our methodology breaks down:
General features (35%)
To assess performance management software for small-business owners and team members, we developed a list of features that useful tools should offer. For this category, we looked at the types of reviews supported, reporting functions, goal-setting capabilities, employee profile options, software integrations and the availability of a self-service portal, among other features. Investing in tools that do what you need them to do is key to your business’s success, hence the heavy weighting of this category.
Pricing and value (30%)
Every decision SMBs make is influenced by cost and the overall value for your spend (i.e., ROI). This category’s weighting reflects that reality. We considered factors such as pricing transparency, free trial availability and plan costs (paid monthly or annually).
Customer reviews (10%)
Businesses shouldn’t make a decision on performance management tools without considering real-world user experience with them. For this category, we considered the aggregate rating for each service from users on third-party review websites G2, Capterra and Trustpilot.
Service and support (10%)
For small-business owners, all time is valuable. So, they can’t afford to waste it on difficult-to-use tools. For this category, we looked at how easy it is for users of these performance management tools to get the support they need, whether via live chat, phone, email or an online knowledge base.
Additional functionality (5%)
We also wanted to consider what else the software offers beyond the necessary performance management functions. For this category, we evaluated two main areas: general HR tools and employee engagement features.
Editors’ Score (10%)
Our Editors’ Score for the best performance management software for small businesses considered four key factors: included features, value for money, popularity and ease of use. After we ranked the software using metrics associated with each of the above categories, we evaluated those at the top of our ranked list and assigned each a grade on a scale from terrible to excellent (each descriptor is associated with a numerical value). The final score (inclusive of our Editors’ Score) was then converted into a star rating (where zero stars is the lowest possible score, and five is the max).
360° Degree Review Feedback
Yes
Dedicated success manager
Included
Base monthly price
Not disclosed
On Mitratech Trakstar’s Website
Run any review process
Yes
Dedicated success manager
Included
Base monthly price attribute
$5-10 per person/month
On PerformYard’s Website
Frequently asked questions (FAQs)
Performance management ensures that your current workforce, goals and projections are aligned. An effective performance management strategy highlights strengths among your team and reveals weaknesses that need to be addressed before they have a greater impact and harm your organization.
Performance appraisals exclusively focus on objectively examining an employee’s past performance over a specific period of time and giving feedback. This is generally a regimented process that happens at specific intervals (once or twice a year, for example) and is one small part of performance management.
Performance management is a holistic approach to understanding employee performance that considers past and present performance as well as future development. It’s an ongoing process that looks at how individual and team performance complements or supports organizational goals. Appraisals are part of performance management, alongside goal-setting, continuous feedback, training and development, skills gap assessments, etc.
Start slow and keep it simple. Think about what’s most important to your organization and what’s needed for your business to thrive. Create a strategic plan that takes into consideration the most important objectives for your team. Utilizing software like the tools in this list can play a huge role in improving processes as well, significantly reducing needed leg work.
Yes. Workday has a performance management system that offers goal planning, individual performance tracking and gap analysis. Workday Talent Management gives you a single system for managing HR, talent and performance data. Check out our Workday competitors guide for more information on Workday and some of its best alternatives.
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