55% of employees expressed dissatisfaction with traditional annual reviews, stating that they do not enhance their employee performance, revealed a study conducted by the Workhuman Analytics & Research Institute in 2019. Additionally, more than half of the workforce (53%) believed that performance reviews fail to accurately reflect their work contributions. 

With such data in hand, it's worth reevaluating your performance management systems. Kicking off this process involves gaining a thorough understanding of how to choose performance management software and then exploring some of the software performance management tools.

Key considerations for choosing Performance Management Software

When selecting performance management software (PMS), it's essential to consider both qualitative and quantitative aspects of performance evaluation. Focusing solely on quantitative metrics may foster a culture of high-volume, low-quality work, with limited opportunities for learning and process improvement. 

For instance, marketing team PMS that excludes metrics like new leads and conversions could hinder the team's ability to achieve company-wide goals. So, to choose the right performance management software for your organisation, consider the following:

1. Evaluation criteria: Determine the key performance indicators (KPIs) and metrics relevant to your organisation's goals and objectives.
2. Scalability: Ensure that the software can accommodate the growth and changing needs of your organisation over time.
3. Customisation: Look for software that allows customisation to align with your organisation's unique performance evaluation processes and criteria.
4. Integration: Choose a PMS that seamlessly integrates with your existing systems and tools, such as HRIS or CRM software, to streamline processes and data management.
5. User-Friendly Interface: Opt for software with an intuitive and user-friendly interface to encourage adoption and usage across the organisation.
6. Data Security: Prioritise data security and compliance with relevant regulations to safeguard sensitive employee information.
7. Feedback Mechanisms: Select software that facilitates ongoing feedback and communication between managers and employees to support continuous improvement and development.
8. Training and Support: Consider the availability of training resources and customer support services to ensure smooth implementation and ongoing usage of the software.

Best Performance Management Software

There is a plethora of performance management software (PMS) available to streamline this process and empower businesses to achieve their goals. While there are numerous excellent options on the market, we've curated a selection of user-friendly solutions suitable for businesses of all sizes. From small startups to large enterprises, these PMS platforms offer intuitive interfaces, robust features, and scalability to meet the diverse needs of modern organisations.

15Five

15Five is a comprehensive platform leveraging technology to merge employee engagement, continuous performance management, and effective manager training. Through a blend of software tools, educational resources, and community support, it aims to cultivate strong leadership and enhance overall employee performance. The platform offers tailored solutions to address critical aspects of organisational success. This includes prioritising employee engagement by fostering a positive work environment and facilitating open communication channels. 

Additionally, it focuses on developing effective managers by providing training and support to enhance their leadership skills, feedback delivery, and support for employee growth. Recognising the increasing prevalence of remote work, 15Five also offers features and resources tailored to support remote team development. These features facilitate collaboration, communication, and productivity within distributed teams, ensuring they remain aligned with company objectives. 

Furthermore, the platform enables organisations to set and track key objectives and key results (OKRs), ensuring alignment with overarching business goals and strategies. Lastly, 15Five places a strong emphasis on people development, offering tools and resources for ongoing learning and development to promote both personal and professional growth among team members.

BambooHR

BambooHR emerges as a robust Human Resources Information System (HRIS), offering a suite of HR features such as payroll, time tracking, employee engagement, and applicant tracking system (ATS), all seamlessly integrated into one centralised platform. Tailored as a cloud-based solution, BambooHR caters predominantly to small to medium-sized businesses (SMBs) striving to optimise their HR processes for efficiency. 

By consolidating all employee information in a single location, the software ensures easy accessibility for employees, HR professionals, recruiters, and managers, fostering streamlined operations. One of BambooHR's key strengths lies in its comprehensive feature set, which includes a range of benefits for users. These include a free trial period, a mobile app for on-the-go access, a centralised employee database for simplified management, and built-in approval workflows to streamline processes. 

Additionally, the platform offers offboarding features, templates for various HR tasks, and volume discounts to drive down costs per employee, all contributing to its appeal among SMBs. However, BambooHR does have its limitations, including a lack of pricing transparency on the website and the absence of a free plan option. Furthermore, certain advanced features such as the ATS are not available on the basic plan, and payroll and benefits administration functionalities are not included. 

Additionally, phone support is not accessible on the basic plan, potentially impacting customer service accessibility. Despite these drawbacks, BambooHR remains a compelling choice for SMBs seeking a comprehensive, user-friendly solution to streamline their HR operations.

Workday

Workday stands out as a cloud-based HR software program designed to streamline workforce management for businesses. Its Performance and Goal Management module offers organisations a streamlined approach to performance evaluation. With Workday's Performance Management module, users can track individual performance, compare talent acquisition and management data, access performance-related tasks, measure performance, and establish future goals and growth opportunities. 

Furthermore, Workday's talent management suite encompasses various tools to support employee management and development. From managing, developing, and rewarding employees to onboarding, goal management, performance management, succession planning, and career and development planning, Workday offers a comprehensive solution to address diverse HR needs. 

The Talent and Performance module within Workday empowers businesses to align their workforce with company goals, gain insights into key talent information, manage critical talent transactions, foster business growth, and make informed decisions. Leveraging real-time reporting, analytics, integrated workforce scheduling, and a centralised HR database, Workday's software enables businesses to effectively manage their staff, information, and processes, thereby enhancing operational efficiency and driving organisational success.

Reviewsnap

Reviewsnap emerges as a cloud-based performance management system offering a comprehensive suite of talent management solutions. Catering to businesses of all sizes, including small and midsize companies, Reviewsnap provides a range of features to streamline performance evaluation and goal tracking processes. Key features include performance reviews, 360-degree feedback, notes, reporting, goal tracking, and continuous feedback. 

One of Reviewsnap's standout features is its goal tracking functionality, allowing employees to set and monitor goals, track progress, and access past performance appraisals conveniently online. Additionally, the platform facilitates continuous feedback, enabling supervisors and employees to make notes on performance, monitor goal progress, set reminders, and schedule regular check-ins, fostering ongoing development and communication. 

Founded in 2007, Reviewsnap offers an integrated suite of talent management solutions, encompassing compensation management and learning in addition to performance management. With its user-friendly interface and robust feature set, Reviewsnap empowers organisations to drive employee engagement, enhance performance, and foster continuous improvement within their workforce.

Engagedly

Engagedly stands out as a cloud-based talent management platform renowned for its performance management system (PMS), bolstered by Marissa AI. Designed to cultivate a high-performance culture within companies, Engagedly offers an array of integrated applications to streamline various HR processes. The performance management system by Engagedly encompasses a suite of features, including onboarding, employee learning, performance review, measuring employee performance, tracking progress towards strategic goals, and fostering effective collaboration among employees and departments. 

This holistic approach ensures that organisations can effectively manage and enhance employee performance while aligning with broader strategic objectives. Moreover, Engagedly's platform goes beyond performance management, offering additional features for learning and development, employee engagement, and recognition and rewards. By providing comprehensive tools to support various aspects of talent management, Engagedly empowers organizations to nurture a motivated workforce, drive engagement, and foster a culture of continuous growth and improvement.