Performance Management Software Buyer's Guide
The Best Performance Management Software Is All About Streamlining the Employee Review Process
By Mariah Hansen, Market Research Associate
Let’s be honest: traditional performance management — the process of rating employees’ performance and ranking them against their colleagues — is, at best, necessary. At worst, it’s a highly flawed process in need of updating and realigning to the work values of the 21st century. This perspective is not new or surprising to the many managers navigating the performance review process — it’s also the reason many HR managers are implementing any of the top performance management software solutions.
- Introducing performance management software will help you to automate and streamline a variety of tedious tasks, saving you time and boosting your overall productivity.
- Successful implementation of new software requires that you have a thorough understanding of your needs and what your overall goals are.
- Developing a list of requirements will help you to determine which software has the features you need most for your business.
- Asking vendors key questions will help you to ensure you select the best system for your business needs.
What This Performance Management Guide Covers
- Benefits of Performance Management Software
- Implementation Goals
- Core Performance Management Software Features
- Additional Performance Management System Features
- Compare Top Performance Management Systems
- Questions to Ask Yourself
- Questions to Ask Vendors
- Related Content
Benefits of Performance Management Software
The principal function of HR is to align its strategic goals with those of the corporation in order to facilitate and provide employees the maximum opportunities for their personal and business success. Performance management importantly provides the means to measure and improve employee talents, and the technology that supports this vital function must encourage a transparent and agile process. Ideally, it should encourage an ongoing routine structured towards developing and supporting an employee’s career goals, as well as fulfilling the organization’s business and talent needs.
The critique of the traditional performance management process — specifically the annual performance review process — has had some researchers in the field advocating for its complete dissolution. While it is clear that the process is in need of reform, wiping it out completely may create more harm than good. This is the reason so many businesses are shifting their process to include software that can streamline and automate many tedious tasks.
While benefits, generally speaking, are subjective and tied to a specific set of circumstances, we can settle on a set of benefits that would largely fit the majority of organizations. For starters, it’s difficult to argue against increased productivity as a primary benefit — but that’s not the only benefit you’re likely to see.
There are plenty of tedious tasks involved in performance management, and a good performance management platform can help you to automate some of those tasks. For example, it can help you track and manage goals and objectives — either at an individual or at a team level. This kind of management will help you to ensure that your employee’s performance is in alignment with your overall business strategy.
Setting clear goals and milestones for your employees that directly correlate with the company’s overall objectives. This will benefit the organization overall, as everyone will be working towards the same goals at a higher level. When goals are aligned, each employee’s output supports reaching a company’s goals. It will also help your employees to feel engaged with the business when they can see a direct connection between their work and your organization’s success — and when they see that success they’ll also feel more empowered by their work.
The introduction of HR performance management software is more than just a good way to automate some of these small tasks. It’s also has long term benefits. Possessing knowledge about your workforce’s skills and abilities allows you to confidently plan for both present and future contingencies. The identification of employee goals, performance level, and development activities are the keys to unlocking a competitive advantage for your company. This knowledge can be in the form of data that you measure and assess in order to arrive at the best possible insights.
As with any step in a new direction, it’s important to have a roadmap of where you want to go when introducing new software. You’ll want to sit down with your team and discuss what your objectives are for implementing a new system. Everyone should be on the same page so they can all contribute in their own capacity to reaching your end goals. Consider the reasons behind your decision to implement a new product, and be sure that those concerns will be directly addressed when looking for performance management software.
Boost Efficiency & Productivity
Performance management systems allow you to automate many of the tedious tasks involved in ensuring your employees are meeting their goals.
Things like scheduling and documenting performance reviews can be automated, leaving you more time to focus on tasks that software can’t do for you.
While they can be tedious, performance reviews help guide your employees and ensure that they’re taking advantage of growth opportunities. Spending less time on the little tasks involved in the review process means that you’ll be able to focus your efforts where they’re truly needed and get more work done.
Align Employee Goals & Business Objectives
No matter what type of business you have, it will be most successful when everyone is working towards accomplishing the same goals.
Alignment of employee goals and business objectives ensures that an organization’s strategic objectives are understood by their workforce and that a course correction, if required, can simply and efficiently be achieved. This ability is critical to a company’s success. A powerful tool that provides employees with meaningful feedback while also linking this information to business objectives is very important.
Streamline Performance Management Tasks
There are many moving parts when it comes to performance management. Tracking individual employee progress, accomplishments and goals is a lot of work — especially if you have more than a handful of employees. You’ll want to ensure that whichever system you choose is able to automate at least the most basic tasks so that you can streamline your review process.
Integrate Continuous Performance Management
Continuous performance management does not envision performance management as an event or conversation that takes place around the formal annual performance review. It is recognized, more appropriately, as an integral part of an ongoing relationship between manager and employee. And performance management has been expanded to cover all the development, coaching and reward activities that occur throughout the year, both formally and informally.
Continuous performance management enables quick and frequent feedback on work between employee and manager, or more lengthy, formal coaching advice or development planning. Whichever software you ultimately select should provide you with the ability to integrate continuous performance management processes into your business.
Core Performance Management Software Features
Clearly envisioning how you and your workforce will benefit from the introduction of a performance management platform moves the process of implementing software much further along. Rather than selecting from a lengthy list of features and functions, you can evaluate software based on your top priorities.
Performance management system software offers a range of functional options and features; some of these functions form part of a requisite group of features that are present in all performance management systems, while some features are more specialized and fulfill very specific requirements. When you begin your product search you’ll want to be aware of what those features are and which ones will be most valuable to you.
Goal setting is an important part of performance management. Each year you sit down with your employees and discuss what specific goals they can work towards over the next year. You want to make sure your employees are meeting their goals, and discover what you can do to assist them if they don’t.
This feature assists in setting and tracking those goals. Some systems can even help you ensure those goals are measurable. Some of the more specific functions of this feature include customizable goals, goal tracking and even sending you alerts to remind you to check on whether or not employees have met their goals.
|Performance Evaluation System|
This feature houses a variety of tools that can all be utilized to evaluate performance. Some of those specific tools include self-assessments, appraisal forms and performance tracking. This is likely the primary function you’ll utilize when evaluating employees, so it will be important that this feature is capable of tracking and measuring performance in a way that will be valuable to your organization.
When the time comes for one of your hardworking employees to move on from their position — whether they’ve received a promotion or are retiring — you’ll want to be sure that there is a seamless transition when their replacement steps into the role. Succession management can help with this exact scenario.
This feature includes succession planning tools, talent pool management and career development planning among other tools. These tools will help you to plan ahead for when one of your employees steps out of their role, ensuring that you have a qualified replacement ready to step in.
If you have great employees, you don’t want compensation to be the reason they leave. That’s why it’s important to pay your employees fairly for the work that they do. The compensation management function will help with this in a variety of ways.
One specific tool within this function that can help reward employees who do great work is incentive management. When you see that your employees are performing exceptionally well, this tool will help you with budgeting and calculating monetary incentives.
|Employee Lifecycle Management|
From onboarding to exit counseling, an employee lifecycle management feature can help you every step of the way. This function can help you with the recruiting and hiring process, ensuring you find and hire the best talent. It can also help when it’s time for your employees to move on with offboarding tools.
Additional Performance Management Software Features
The vast majority of systems will have additional features that, while not specific to evaluating your employees performance, will provide additional benefits. Being aware of what additional features vendors offer with their software can help the buying process, particularly if you’re torn between two software options. If you find your top performance management vendors tied when it comes to the basic requirements then you can start to assess these additional features and see which one pulls into the lead.
|Reporting & Analytics|
In any business, there is a lot of valuable data that can provide insights. A reporting and analytics feature can provide you with performance related reports and talent analytics. This type of data analysis can help you gauge which employees are doing well and which ones need help. It can also help you to develop standards so that your employees are able to gauge whether or not their performance is where it should be, as well as recognizing when they’re performing exceptionally well.
|Learning & Development|
This feature will be useful after performance evaluations have ended. This functionality can help with providing feedback, coaching and learning. These tools can help ensure that your employees have everything they need available to them so that they can meet the goals defined by their performance review.
This feature may have a variety of functionalities within it. Often it will allow you to grant role-based permissions to each user, enabling lower level employees basic permissions, while managerial staff will have additional permissions. It can also help administrators to define rules, assist in payroll and facilitate leave plans.
Compare Performance Management Systems
When comparing the best performance management systems you’ll need to have a thorough list of your must have requirements — we’re happy to help with our requirements template. Knowing what your top requirements are will help you by giving you a clear picture of which vendors can meet your needs. Once you’ve narrowed down your list of vendors, you’ll want to be sure to conduct a thorough comparison to ensure that whichever system you select will have all of the features that you’re looking for.
Questions to Ask Yourself
How big is my business?
You’ll want to determine the size of your business. Business size divides companies into two categories: enterprise sized and small-to-medium (SMB) sized businesses. Most enterprise sized organizations consider integrating a performance management system with their existing HR or enterprise resource planning (ERP) systems. This eliminates the concern regarding the integration of new software with existing systems.
SMBs also benefit from a robust performance management system. This brings focus on an important factor: scalability. In other words, you want your systems to grow at a similar pace as your business. But at some point, you may not have enough functionality in the existing system, and it may be more prudent to invest in another system.
How much does the system need to be capable of doing?
If the HR solution you have in place is still working well and efficiently, a standalone system with good functionality may be appropriate, as long as it integrates with the existing platform. On the other hand, an entire talent management system that incorporates performance management would provide maximum efficiency and perfect integration.
What is my implementation timeline?
You’ll want to have a good idea of when you’ll need your new system to be fully up and running. Develop a timeline and give yourself deadlines for things like selecting software. You’ll also need to account for the time it takes to train employees on the new system, as well as the time it takes to fully integrate your new system with any existing products you already use. Selecting and implementing your new software will take time away from other daily tasks, so you’ll want to plan accordingly.
Questions to Ask Vendors
Does the vendor offer a demo?
Many performance management software vendors offer a demo or walkthrough of their product, wile others offer a free trial. These offerings act as a movie trailer — helping you decide whether or not you’re interested in shelling out money for the ticket and the popcorn, which we all know can be pricey. Seeing the movie trailer highlights of the software before you make your final selection will help you have a better understanding of all that the system has to offer.
What integration options does the vendor offer?
If you already use another HR software, then you’ll want to be sure that the new system is compatible with your existing system. This will help you to streamline tasks across platforms and boosting productivity. For example, if you implement performance-based incentives, then you’ll want to be sure that your performance management software can communicate with your payroll software so that there’s no extra work involved in rewarding your employees for their good work.
What deployment options does the vendor support?
Your deployment preference will depend on your specific business needs. On premise systems can provide peace of mind, knowing that all of your data is stored in house. However, if you’re planning on expanding your business you might choose a cloud-based system that will allow you to easily connect with employees and consumers in any location.
Top 10 Performance Management Software Leaders(of 40 products) GET THE IN-DEPTH REPORT
Easy-to-use, affordable, and effective employee performance management for small and medium sized businesses looking to streamline appraisals and engage talent in ongoing feedback development. Award-winning features and guided set-up and training ensures performance management success now and in the future:online appraisals self-assessmentsreal-time goal tracking360° reviewsongoing feedback journalingtalent identification succession planningcompensation managementstatus tracking dashboardsguided setup and training for HR and end-usersHosted or on-premise deployment
ClearCompany is the easiest way to bring all employee review processes into a single, automated solution. Their easy-to-use software allows you to quickly set up reviews, including custom scoring tables, weighted sections, and free-form responses. Sections of reviews can be shared among multiple forms to further simplify setup and scoring. Flat-rate pricing allows you to send as many reviews as you need, as frequently as you need to, without worrying about the price tag. While their Performance Management System is incredibly powerful on its own, the complete ClearCompany Talent Management Platform also includes solutions for applicant tracking, new hire onboarding, and goal alignment; allowing you to seamlessly find, hire, onboard, review, engage and retain top performers. ClearCompany is also highly rated for customer support, providing all clients both dedicated Implementation and Relationship Manager as well as unlimited ongoing training, support and consulting services.
Performance Culture, Inc. is a web-based performance management platform that helps managers and employees improve performance through continuous coaching, timely feedback and meaningful recognition. The platform is designed to align company goals with employee expectations, coach employees on both performance and key behaviors, and manage team members using the performance values matrix. Performance Management is a crucial component in developing a culture that fosters team chemistry and keeps employees engaged and inspired. Performance Culture uses the Performance-Values Matrix to help you unlock the full potential of your team. The software includes Performance Reviews, Check-Ins, Coaching Templates, Employee Engagement Surveys, 360 Degree Feedback, Learning Management System and exclusive Coaching Videos.Performance Management is a crucial component in developing a culture that fosters team chemistry and keeps employees engaged and inspired. Performance Culture uses the Performance-Values Matrix to help you unlock the full potential of your team. The software includes Performance Reviews, Check-Ins, Coaching Templates, Employee Engagement Surveys, 360 Degree Feedback, Learning Management System and exclusive Coaching Videos.
Saba talent management systems provide you with a full set of capabilities to manage every aspect of workforce, organizational and succession planning. From organizational modeling and planning to building a leadership pipeline or bench strength for critical positions, Saba can help you see all of your people information in one place. No matter what sort of people-centric insights you need, Saba is your strategic platform for talent management.
Oracle's performance management solution fully automates the performance process and provides executives, managers, and employees with valuable and immediate insight into workforce performance progression and its alignment with organizational objectives.
The BirdDogHR Talent Management System is designed to centralize HR processes to manage your workforce from start to finish. With integrated modules for each stage of the employee lifecycle, the easy-to-use and mobile-friendly software helps more than 1000 companies nationwide attract and hire top talent, onboard and train employees efficiently, improve workforce productivity, reduce organizational risk and meet compliance requirements.
LightWork Software makes the HR experience easy and valuable to your organization. We turn the overwhelming task of managing employees into an essential business strategy with dynamic talent management and simple timekeeping.
BambooHR is the number one HR software for small and medium sized businesses. BambooHR’s cloud-based system has beautifully designed, intuitive features including an applicant tracking system (ATS), onboarding with electronic signatures, automated time-off tracking, and innovative performance management. This gives HR managers more time for meaningful work. Executives get accurate, timely reports, and employees can self-service their time-off using a convenient mobile app. Clients include many industry leaders like Stance, Soundcloud, and FanDuel among thousands of others in over 80 countries worldwide. Visit bamboohr.com or give us a call to watch a free demo and start a free trial today.
Namely is the HR, Payroll, and Benefits platform your employees will love. Finally, there’s HR software that employees actually use—built to fit your company culture. Manage all of your HR data in one place, with personalized service to help your company get better, faster. Namely is used by some of the world’s most innovative and exciting companies in media, technology, commerce, and more.
Ultimate Software’s cloud-based UltiPro helps simplify and improve work experiences for employees at every level. Organizations can easily manage global people data and processes with UltiPro and ensure their people feel engaged and productive from day one. With UltiPro, you can deliver personalized recruiting and onboarding experiences, guide employees through important benefits choices, simplify complex payroll computations, efficiently manage time and attendance needs, support continuous performance management and development, and build proactive succession plans for the future. Most importantly, UltiPro’s solutions are supported by powerful business intelligence and reporting to help you drive smarter, people-focused business results.
PeopleFluent’s Performance Management allows you to align your workforce to corporate objectives, evaluate individual performance and measure organizational results. This complete performance management system provides easy-to-use yet highly effective tools such as goal management, performance appraisals, competency and skill assessment, talent profiles, development activities, mobile performance management, anytime-anywhere feedback, calibration grids, reporting and analytics, and multi-rater / 360 review functionality. With PeopleFluent’s Performance Management solution, you can improve business results, develop employees and retain key staff by aligning, establishing and measuring employee performance on a continuous basis.PeopleFluent also provides PeopleFluent Compensation. PeopleFluent Compensation provides a comprehensive, full cycle compensation solution that addresses Total Rewards, and when combined with PeopleFluent Performance, pay for performance. PeopleFluent Compensation enables full visibility through reporting, analytics, budget planning and pay and compensation statements.
Insight:Insight automates the entire hiring and selection process from requisition to hire and is tailored for the unique needs of public sector organizations. Reduce application review and screen time with Insight’s auto-scoring applicant tracking software. Produce weighted scores and rankings by combining online tests, screening protocols, performance exams, and situational tests. List open positions on your company website while maintaining its look and feel. Accept online job applications and ask job-specific supplemental questions. Track traffic and advertising sources and reduce the time and effort spent posting jobs and processing applications.Enhance applicant and staff experience by eliminating paper and reducing bottlenecks. Generate email notifications, maintain applicant history, track applicant skills, and more. Optimize your processes, visualize and analyze data, and fully grasp the impact of your HR initiatives. With Insight you have more than 90 standard reports, advanced ad-hoc reporting, and the dashboards you need to make your job easy. Analyze results, perform pass point analysis, check for adverse impact, view applicant flow, mean and standard deviation, item analysis, item discrimination, reliability, standard error of measurement, and more. Generate and manage your weighted eligible list, including configurable scoring rules and additional points processing to rank and refer applicants.Perform:Perform is the only full-featured employee performance management software in the marketplace that is packed with specific public sector functionality. Automate year-end and probationary employee appraisals and allow your HR team to replace manual systems. Analyze employee performance data to identify skill gaps and optimize employee development. Track progress on measured organizational alignment and progress against goals. Identify competency and skill gaps within your organization using one-on-one and/or 360 feedback, self-ratings, and competency models. Generate individual development plans and recommend trainings based on an employee’s competency scores. Visualize your workforce on the automatically generated organizational chart. Approvals, notifications, and to-do actions are displayed in the form of any activity stream. Align individual and team objectives with organizational strategy and manage employee performance and career goals. Powerful goal tools are included to ensure each employee is working on the “right things” to move the organization forward.· Configurable Performance Evaluations· Goal Library· Shareable Competency Content· Development Plans· Configurable Process Workflows· Ability to build Content sections for re-use· Configurable Rating Scales· Ability to build Library of Writing Assistants· 360 Reviews· Configurable Email Notifications· Automatic Evaluation Creation· Ability to perform actions in bulk for Employees EvaluationOnboard:Onboard enables new hires to become more productive from their first day on the job by streamlining new hire paper work, processes and training. New hires complete I9 and W4 forms online in minutes. Employees can sign forms using a mouse, allowing them to complete their new hire checklist online prior to day one. With Onboard, you can assign forms to specific employees, groups, and departments. Set up your required fields and approval routing, and you are done.Signatures look just like wet signatures because employees can use their hand and mouse to sign any online form. Additionally, new employees have their own access accounts with unique credentials for strengthened authentication and security. Configure your new hire portal with interactive social collaboration, questions and answers, documents, trainings, and videos. Communicate your organization’s mission and values, and relevant training information to new hires while they are going through the onboarding process.· Electronic Employee File· Federal I9 and W4 forms· Task Manager· Employee data upload· Build your own Onboarding forms**Onboard (ON) includes Federal I9 standard forms that are updated annually and Federal W4 forms updated every 2-4 years. NEOGOV:NEOGOV offers a background check application programming interface (API) integration that allows users to purchase, monitor status and collect data on their background checks. This is made possible by close technical integration with Partnered background check providers: NEOGOV provides an API which allows the customer to pre-populate Applicant or Candidate background check forms with first name, last name, and email address, automatically send an email notification to the Applicant or Candidate for further information needed for the background check (SSN, Date of Birth, consent signatures, etc.), NEOGOV through its’ Certified Eligible Partners will automatically start the background check process after the information is gathered. When results are provided by the Partner(s), NEOGOV will automatically display statuses for review and further hiring steps in Insight’s Online Hiring Center (OHC).Customer is responsible for maintaining strict access to the background check security roles in the OHC settings section called “Background Check”. Customer must contact Background Check Partner and NEOGOV immediately to revoke services if there is reason to believe that securities have been compromised.
Be the employer everyone wants to stay and grow withFoster a culture of high performance and career mobility through ongoing, consistent feedback, reviews, rewards and recognition. All within an intuitive, people-friendly system.
Unify Your Entire Organization - With the power of Unified Talent Management, organizations can bring all phases of the employee lifecycle under one platform. Unified Talent Management delivers the single source of truth into an organization's entire workforce. Cornerstone OnDemand is the only truly unified system designed to enable comprehensive talent management, from a single, all-in-one platform. One data model. One login. One customer support team. One solution designed for success.
The SuccessFactors HCM Suite includes a complete set of tightly integrated talent management solutions, robust workforce analytics and planning, plus a next generation core HR solution. With over 3600 customers and more than twenty million users in 177 countries, SuccessFactors HCM Software is the most adopted Software-as-a-Service (SaaS) business software in the world.
Kronos Workforce Central® 8 is ready to help you manage your workforce without limits, regardless of your needs or industry, where you do business, or how you choose to access it. This newly reimagined workforce management solution delivers an unparalleled user experience and depth of functionality, extensive global capabilities, and proven delivery in the cloud.
Constraints on talent are undoubtedly hurting enterprise growth and profitability. If organizations can’t fill their ranks with the right people, they can’t move the business forward. More than ever before, organizations are looking to HR to attract, develop, and retain employees who can help them achieve their business goals.
Engage your workforce, align and assess talent, pay for performance, and plan your leadership succession. Workday Talent Management works seamlessly with Workday Human Resource Management to let you do all of this from a single, unified application.
Talentsoft provides solutions for recruitment, performance, career development, learning, and compensation management that deliver concrete results. Our 100% Cloud-based application helps you better manage every stage of your employees’ careers – and transform your investment in people into a business asset.
HR Performance Solutions was founded in 1989 and offers industry-leading performance management and salary administration applications. Our employee performance management software is time-tested, content rich and are used by over 100,000 professionals.Our solutions are designed by human resource professionals with decades of experience to be secure, effective, flexible and easy to use.
Simple employee evaluation software anyone can use! Since 2001, we've been striving to revolutionize the world of employee evaluations by creating user-friendly yet powerful performance management tools. Today, with over 800 companies worldwide using Trakstar to streamline performance appraisals and build strong goal-setting cultures, we're proud to say we’ve achieved our mission... and we’re not slowing down.Our Seattle-based team works hard to constantly improve our performance management system, so we can continue to offer the most user-friendly, customizable and affordable product for our client base, which includes organizations of all sizes and industries.
WebHR is a cloud-based human resource management solution that helps organizations manage their employees' employment lifecycle, from the time they were hired to retirement. The solution merges functionalities provided by human resource and information technology departments in one suite
Cezanne Performance Management transforms employee appraisals and performance reviews into a centralised, streamlined activity that’s simpler and more satisfying for everyone. Cezanne HR’s integrated Performance management module puts employer in control to set up as many forms and decide what to ask (and how to ask it), the rating or scoring approach you want to use and who to involve at each step of the process.
Synergita performance management is a solution to all employee-related difficulties! HR and managers. Synergita will help employers modernize Employee Performance Management, helps them in their goal management, periodic check ins, and employee development
PeopleGoal is a modular, customizable platform that allows companies to tailor their current performance management process, rather than be dictated by a strict formula. PeopleGoal intuitively links all areas of the performance management cycle online, in one place. The robust reporting suite allows senior team to instantly see as broad or as detailed a picture of the company's performance as they need it
Performly is a cloud-based human resources software solution used for employee performance management. It is suitable for businesses of any size across all industries. Performly allows users to list employee objectives, along with job descriptions, core competencies and plans for development and growth.
Deputy is a cloud-based workforce management solution that makes it easy to schedule employees, manage time and attendance, track performance, and improve workplace communication. With over 270,000 users, it has grown to be a trusted and dependable second-in-command that effectively tackles matters in the workplace.
The Haufe Talent Management Solution allows the organization to concentrate on the most important goals. You will enable smooth cooperation between HR, management and employees and sharpen the focus on effective collaboration
Zugata is a cloud-based performance review and goal management solution suitable for businesses of all sizes in a variety of industries. Key features include 360 degree feedback, development resources, anonymous feedback, goal tracking and integration with third-party HRIS systems
HRweb, offers employee information tracking, attendance, performance reviews or employee appraisals, self or 360 reviews, recruiting with applicant interface, training and more. HRweb helps organizations efficiently track and evaluate their workforce.
Impraise is a mobile-optimized app for real-time feedback, social recognition and peer coaching. Give your people the simplest and most engaging tool to give and request feedback when it's on to of their mind, e.g. after a meeting
Awardwinning eloomi combines learning management (LMS) and continuous performance management in an agile cloud based solution. Simplify skill training and performance improvement with strong user experiences. See more at https://eloomi.com
Pricing & Cost Guide for Performance Management Systems
See the Price/User for the top Performance Management Systems… plus the most important considerations and questions to ask when shopping for Performance Management Systems
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