Best Performance Management Software of 2024

Your company uses software to effectively manage nearly all of its business processes, so adopting a digital performance management system makes sense. And, according to Statista, your firm wouldn’t be alone in doing so. System sales are projected to grow to 1.65 billion dollars by 2024. But, with so many options on the market, how can you be sure you get the right solution? Don’t worry. We’ve compiled a list of the five best performance management systems to help you out.

The Best Performance Management Software

• ClearCompany - Best Overall
• Bamboo HR - Best for Tentative Buyers
• SAP SuccessFactors - Best All-in-One HR Software Solution
• Engagedly - Best Focused Performance Management Software Solution
• Trakstar - Best Implementation Process

What Is Performance Management? 

At the core, performance management is actively guiding your workforce to achieve company goals. Under the old way of thinking, it consisted primarily of an annual review and little else. However, many companies have realized that this limited method doesn’t produce the desired results. In fact, just over half of employees polled in a Workhuman survey receive yearly evaluations. Instead, they get continuous feedback about how they’re doing, which has proven to be a more effective performance management technique.

But, providing that steady stream of feedback can be a cumbersome responsibility for an already busy management team. That’s where a performance management system comes in. The system can digitize and simplify the process and help each supervisor and human resources professional:

• Set goals for and with their employees.
• Track progress towards established objectives.
• Organize and analyze performance-related data.
• Collect input from other stakeholders, such as peers.
• Facilitate discussion and collaboration with each team member.
• Decide who to recognize and reward.
• Identify skills gaps and create training programs.
• Build career paths and succession plans.

And, yes — if your company still conducts annual reviews with staff, leaders can manage that process within the system as well.

Reviews Of The Best Performance Management Systems

ClearCompany - Best Overall

Founded in 2004, ClearCompany offers companies a full suite of talent management tools, including a performance management module. You can buy the complete package or each module you need separately.

Where It Excels

We like ClearCompany’s performance management tool because it’s customizable and has a simple interface. Online reviews indicate that while learning how to use the software’s full functionality can take some time, getting started is easy. The system is available on desktop and mobile and:

• Lets you design, manage, and automate your review process.
• Sends automatic reminders to participate in review and feedback processes.
• Helps you build rating scales to assess performance.
• Allows you to set and track goals for each employee and department.
• Facilitates continuous collaboration between employees and managers.
• Encourages peer-to-peer recognition.
• Surveys workers to gauge their satisfaction and engagement.
• Provides reports with important data and insights.

ClearCompany’s system gets used by clients in various industries. If you’re interested in learning more, you can sign up for a free demo on the company’s website.

Where It Falls Short

While online reviews of the company are generally favorable, a few complaints exist. For example, some users would like to see minor program tweaks to accommodate their needs. Plus, some customers experience system slowness.

Pricing

ClearCompany doesn’t include pricing information on its website, so you’ll need to contact the company for a quote.

Bamboo HR - Best for Tentative Buyers

Founded in 2008, Bamboo HR offers a robust set of HR-related tools, including a performance management solution. The company prides itself on creating a fun and pleasant experience for all users.

Where It Excels

We like Bamboo HR because the company offers a free trial, which can be helpful if you’re not sure that you’re ready to commit to new software. As a user, you’ll be able to:

• Conduct scheduled performance reviews and assessments.
• Guide employees on an informal, continuous basis.
• Allow employees to assess their own performance.
• Include peer feedback in the evaluation process.
• Track and recognize the achievement of established employee and group objectives.
• Set automated reminders for stakeholders to participate.
• Run reports to see performance data at the employee and company levels.

You can use the system from your desktop or mobile device, making it easy to stay up-to-date no matter where you are.

Where It Falls Short

Bamboo HR has many satisfied customers. But, some online complaints exist about the lack of transparent pricing and issues with the sales process.

Pricing

The performance management module gets offered as an add-on to either the Essentials or Advantage package. However, Bamboo HR doesn’t list its prices online. If you want a quote, you’ll have to contact the company.

SAP SuccessFactors - Best All-in-One HR Software Solution

Since 2012, SAP has sold SuccessFactors as a complete human capital management system. The company offers a robust suite of tools that you can assemble to meet your organization’s needs. The Performance and Goals module can help you improve your performance management process.

Where It Excels

We like SAP SuccessFactors because it offers a truly comprehensive HR software solution, which could be helpful if you’d like to overhaul your entire system. The Performance and Goals module allows users to:

• Have a consistent dialogue with employees that includes updates, coaching, and praise.
• Measure and celebrate success at the individual, team, and company levels.
• Set and track goals that support the firm’s objectives.
• Share feedback and ask for it from other stakeholders in the company.
• Customize the review process to suit your organization.
• Identify top performers and maintain a record of employee achievement.
• Check their language to ensure legal compliance.

To make performance management more convenient, customers can access the platform from their desktop or mobile device.

Where It Falls Short

Since SAP is so feature-rich, the system can be slow, difficult to navigate, and tricky to implement. Some online reviewers also report having customer service issues.

Pricing

The Performance and Goals module starts at $4.17 per user per month. To get a custom quote for your enterprise, you’ll have to contact SAP.

Engagedly - Best Focused Performance Management Software Solution

Engagedly provides a software solution that reconfigures how a company approaches performance management, employee engagement, and employee development. The firm offers a suite of tools for each of the three HR disciplines.

Where It Excels

We like Engagedly because the company focuses closely on performance management, unlike some competitors that try to cover every HR function. With this system, users can:

• Have ongoing weekly or bi-weekly check-ins, which fosters continuous performance management.
• Exchange feedback with each other in real-time.
• Set and track goals at the employee, team, and organization levels.
• Customize the review and assessment processes, including templates.
• Recognize and reward good performance, which includes peer-to-peer recognition.

Engagedly gamifies the recognition and rewards process to make it fun for everyone involved. Users can earn badges and points for completing designated tasks or achieving certain milestones. The points can then get redeemed for prizes.

Where It Falls Short

Engagedly boasts many happy clients, but some online complaints exist. For example, some customers report issues with system speed, software glitches, and the user interface.

Pricing

Like many other software providers, Engagedly doesn’t publish cost information on its website. To obtain a free demo and quote, you’ll need to contact the company.

Trakstar - Best Implementation Process

Since 2001, Trakstar has offered human capital management software solutions. Their entire platform covers most aspects of HR, but you can purchase each module separately based on your company’s needs.

Where It Excels

We like Trakstar because the firm offers top-notch implementation support. If you purchase the software, you’ll get assigned a designated implementation specialist that will work closely with you for the first four weeks of service. The company’s Perform module lets customers:

• Customize forms and rating scales for performance reviews.
• Provide in-the-moment coaching to employees.
• Define and track goals.
• Take notes in the system and share them as needed.
• Use reports to gauge performance across employees, teams, and the company as a whole.

The system also provides compensation recommendations and lets users collect 360-degree feedback and create succession plans.

Where It Falls Short

Trakstar is generally well-rated. However, there are some complaints online about the system being slow and select functions not being user-friendly.

Pricing

Trakstar doesn’t list pricing information online. To learn about cost or to request a live demo, you’ll have to contact the company.

How To Choose A Performance Management Software

The best system for your firm will align with how your specific company wants to handle performance management. However, top platforms give supervisors the ability to:

• Establish well-defined performance metrics and SMART goals.
• Track and tweak both short-term and long-term objectives.
• Collect 360-degree feedback.
• Solicit reflections and self-assessments from employees.
• Provide real-time constructive criticism, guidance, or praise to workers.
• Organize data to use for decision-making and planning.
• Set reminders for themselves and team members.
• Keep a running log of important notes for future reference.

Before choosing a performance management solution, you should also consider the system’s overall value and ease of use, how the vendor supports users, and the service provider’s reputation.

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Frequently Asked Questions 

What are the three best practices of performance management?

The three best practices of performance management are setting SMART goals, giving timely, regular feedback, and celebrating a job well done.

What does good performance management look like?

Good performance management looks like regular communication between employees and supervisors, workers achieving established goals, and the company rewarding individual and team success.

What is the best performance evaluation method?

The best performance evaluation method generally depends on what you’re trying to measure. However, the 360-degree feedback method is often labeled the best because it incorporates insights from various stakeholders.

What should a good performance management system aim for?

A good performance management system should make the performance management process easier, encourage regular feedback, motivate employees to reach goals, and recognize and reward workers when they reach key milestones.

The Bottom Line

Performance management can be a complicated process, but it doesn’t have to be. If you select the right tool, you can get the most out of your workforce (while supporting each employee) without breaking a sweat. Our list of the best performance management systems should help you on your quest to find the ideal solution for your company. Our team has also reviewed the best HR software, the best recruitment software, and the best applicant tracking software if you are looking for other solutions for your company.