11 Best Performance Management Software of 2024

Finding the right performance management software for your organization can feel overwhelming with so many options available. The right tool doesn’t just streamline your processes—it enhances efficiency, improves employee performance, and drives overall success.

To help you make an informed decision, we’ve curated a list of the best performance management software. These solutions can to simplify your evaluation processes, contribute to employee growth, and align each individual's goals with your organization's objectives.

Each of the following performance management software carries the necessary capabilities and features you'd require to effectively manage and enhance your organization's performance.

ThriveSparrow is a cutting-edge performance management software that empowers managers and HR to enhance employee performance and development. It provides a comprehensive, organization-wide view of 360-degree feedback across departments, teams, and individuals.

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By utilizing data from 360-degree appraisals, ThriveSparrow enables you to fully analyze performance with tools like bell curves, competency summaries, GAP analysis, and AI-driven personalized development plans.

ThriveSparrow Best Features

• AI-Based PDPs: With this feature, ThriveSparrow helps managers save time and effort creating personal development plans for each employee, where they can focus their time and effort on other areas.‍
• Competency Summary: Identify your team's strengths and weakness across competencies and departments.‍
• Individual Performance Reports: Enable both managers and team members to view their hidden strengths and blind spots through comparisons on self-evaluation and peer-ratings.‍
• Team Analytics: Provide managers with real-time performance management data to help with decision-making and workflow optimization.‍
• Engagement Heatmaps: Heatmaps give a color-coded view of engagement levels across departments, managers, and reporting factors by organizing the data from the engagement surveys.

Pricing

ThriveSparrow is built on 3-core modules, each billed on an annual basis.

Engage: $3/month/employee.

Kudos: $2/month/employee.

Performance: $5/month/employee.

G2 Rating: 4.5

See if ThriveSparrow is the performance management system that your business requires. > Book your free call with us now, and get a complete walkthrough of the platform.

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Engagedly is a comprehensive employee experience platform designed to boost engagement, performance, and employee development. With Engagedly, you can set clear goals, receive immediate feedback, and track employee progress effectively.

The platform enables you to align performance management initiatives with your organization’s core values, creating a unified approach to growth. Engagedly’s powerful analytics tools help you evaluate and enhance employee performance, providing insights that support continuous improvement.

Engagedly Best Features

• AI-Powered Performance Reviews: Link goals to performance reviews and create customizable performance workflows.
• Talent Analytics: Data analysis and visualization tools help HR with data-driven decision making.
• Goals: Achieve goals faster, assign or change owners for each milestone, and share goals with respective stakeholders for feedback and input.
• CXO Insights: AI-Powered Analytics gives people leaders a holistic view of the organization, helping align HR practices with business goals.

Limitations

• Low user-friendliness of the application.
• The search function needs improvement.

Pricing

Engagedly comes with a base package and has three add-ons.

Performance Suite: $9/member/month

Add-ons

Rewards & Recognition: $5/member/month

Growth & Learning: $5/member/month

Mentoring Suite: $2/member/month

G2 Rating: 4.4

PerformYard makes managing complex HR tasks easier by focusing on goal management, feedback loops, and customizable performance reports, which streamline the entire performance review process. With smooth integration into your existing HR systems, PerformYard enhances data accuracy and operational efficiency.

Its real-time feedback feature promotes teamwork and boosts productivity, while the platform’s analytics provide valuable insights to support data-driven decisions and help identify top talent in your organization.

PerformYard Best Features

• ‍Reviews & Check-Ins: PerformYard eliminated tedious tasks and lets you customize and track review cycles, and analyze and visualize review data.
• Goal Management: Track and align individual, team, and company-goals within the platform.
• Continuous Feedback: PerformYard enables you to document year-round feedback, whether it is recognizing achievements or detailing team performance.
• Reporting & Analytics: Automatically track performance data and analyze results across teams and roles.
• Employee Engagement: Run surveys, analyse satisfaction factors, and visualize engagement trends on clear dashboards to supplement your engagement initiatives.

Limitations

• The platform has a basic look and feel that may not urge people to explore and use the platform more often.
• The timeline isn't flexible for smaller companies.

Pricing

Billed annually, the platform starts at $5-10/person/month.

G2 Rating: 4.8

Insperity provides a complete Professional Employer Organization (PEO) and talent management solution that covers every stage of the employee journey—from applicant tracking and onboarding to training, development, and performance management. Designed to support company growth and boost employee engagement, the platform offers robust tools for goal-setting, performance evaluations, and employee development.

Its user-friendly design and mobile accessibility make it easy for remote employees and managers to communicate effectively, ensuring a smooth integration of talent management processes across your organization.

Insperity Best Features

• Compensation programs motivates employees to meet their performance goals quickly.
• Performance Management Support: Customize the performance appraisal process, foster individual and team goal development, and provide coaching for supervisors.
• Liability Management Training: Trains supervisors on workplace policy issues.
• Recruiting Support Services: Makes hiring practices more proficient and cost-effective.

Limitations

• Customer service is expensive.
• Pricing of the platform is unclear due to co-mingled services.

Pricing

The pricing isn't available on their site, so you'll need to contact their Sales team and book a demo.

G2 Rating: 3.7

Workhuman combines agile performance development with structured feedback and assessments, creating a dynamic approach to employee growth. This platform encourages a culture focused on connection, continuous feedback, and personal development, emphasizing meaningful human interactions over rigid procedures.

Workhuman is renowned for its cloud-based human capital management software, particularly its 'Social Recognition' platform, which enables employees to recognize and reward each other, fostering a culture of appreciation and engagement. The company also offers solutions in continuous performance management and employee development, aiming to create more human-centric workplaces.

Workhuman Best Features‍

• Ongoing Feedback: Conversations enables a seamless flow of feedback, allowing anyone to request and provide insights anytime, anywhere. ‍
• Frequent Check-ins on Any Device: The platform emphasizes the importance of regular interactions between managers and their teams. ‍
• Agile Performance Management: Conversations offers the flexibility to incorporate and enhance existing performance management processes. It supports organizations in shifting from traditional performance evaluations to a more meaningful and impactful manager-employee interaction model.‍
• Integrated Recognition System: Conversations integrates with Social Recognition, enabling feedback and performance insights to translate directly into formal recognition moments.

Limitations

• Limited reward options.
• Difficulty with navigation because of multiple features and complexity.

Pricing

Workhuman hasn't disclosed their pricing, hence you'll need to contact the Sales team and book a demo.

G2 Rating: Unavailable currently for this product. Workhuman Social Recognition is rated 4.7.

Lattice is a robust performance management and engagement platform built to enhance organizational efficiency and boost employee satisfaction. It enables organizations to identify top talent, drive operational excellence, and cultivate a culture centered around continuous feedback and recognition.

Lattice excels at integrating performance management with employee engagement, offering clear, actionable insights through tools like goal setting, real-time feedback, and customizable review cycles. This holistic approach helps organizations not only evaluate but also develop their talent effectively.

Lattice Best Features

• Customizable Performance Reviews: Lattice offers the flexibility to conduct performance reviews in a way that best suits your organization’s needs.
• Productive 1:1s: The platform transforms 1:1 meetings into the most productive interactions on your calendar, providing the structure and context needed for meaningful conversations between managers and their direct reports.
• Continuous Feedback: Lattice builds a culture where feedback flows freely and regularly, not just during formal review periods.
• Actionable Updates: The platform unblocks direct reports and keeps managers informed, ensuring everyone is aligned and obstacles are swiftly addressed.

Limitations

• Reporting on surveys and performance reviews can be clunky, leading to readability issues.
• Lack of organization for input collected throughout the year, hindering performance report and personal development plans.

Pricing

The performance management plan comes bundled with OKRs and goals, and starts from $11/person/month.

G2 Rating: 4.7

Leapsome combines goal planning, 360-degree feedback, and employee surveys, making it a powerful tool for performance management. By emphasizing continuous feedback loops and regular check-ins, Leapsome provides timely guidance and recognition that supports growth. Its customized surveys offer insights into employee satisfaction and engagement, helping you make data-driven decisions that cultivate a thriving workplace culture.

Leapsome excels at integrating continuous feedback with goal tracking, enabling a responsive and growth-oriented environment. Its tailored approach to engagement surveys helps organizations pinpoint and act on employee sentiment effectively.

Leapsome Best Features

• Customizable Review Processes: With Leapsome, organizations can run various types of reviews, including performance reviews, agile project reviews, 360° reviews, and anonymous leadership reviews.
• Automated Review Cycles: Leapsome’s automation features allow for recurring review cycles and the use of employee data to trigger specific reviews like probation periods or annual evaluations.
• Skill Profiles: Leapsome enables the tracking of employee performance across key skills and competencies, offering insights into skill gaps and facilitating better training budget allocation, team composition, and hiring strategies.
• Contextualized and Unbiased Reviews: The platform provides tools to minimize biases by granting easy access to relevant information such as peer reviews, previous feedback, and goal performance during the review writing process.
• Comprehensive Dashboards: Keep track of each review cycle with dashboards that display key data, including pending reviews and development conversations.

Read more: 15 Best Leapsome Alternatives

Limitations

• User experience could be better.
• Reminder options are limited. Users would like more control over the frequency of notifications.
• Duplicate data issues with HRIS integrations.

Pricing

The pricing isn't available on their site. You'll need to book a demo to know the pricing.

G2 Rating: 4.8

ClearCompany supports the full employee lifecycle, from recruitment through to performance reviews. With features for goal alignment, it seamlessly links personal objectives with organizational goals, simplifying performance management. Workforce analytics offer insights into trends, helping you enhance performance control and foster a strong workplace culture.

ClearCompany stands out for its comprehensive goal alignment, which connects individual and organizational objectives, providing a clear line of sight for success. Its analytics empower HR teams with actionable insights, supporting continuous improvement across the employee journey.

ClearCompany Best Features

• Customizable Review Cycles: Adapt review workflows, questions, and formats to fit the unique roles within your company, or utilize pre-built templates for quick setup.
• Expert-Backed Performance Management: In partnership with performance management specialists, ClearCompany redefines review best practices, offering templates and automation for a variety of review and assessment format.
• Goal Planning: Align employees with company priorities through goal-planning tools that foster continuous feedback, informal coaching, and collaboration.
• Robust Analytics for Performance Insights: Analyze performance data across various dimensions with pre-built reports and interactive analytics. Tools like 9-Box Reporting and 360-Degree Reviews Cycle Progress help identify top performers and track performance trends.

Limitations

• Occasional issues with loading.
• Candidate management is cumbersome.

Pricing

ClearCompany hasn't disclosed their pricing, so you'll need to request them for a quote.

G2 Rating: 4.6

Trakstar makes managing employee success simpler by helping you set goals, provide real-time feedback, and track achievements. With Trakstar’s goal-tracking feature, employees and managers can work together to set, monitor, and align goals that matter.

Real-time feedback tools enhance communication and collaboration across teams. By analyzing performance data, Trakstar helps businesses identify strengths, areas for improvement, and training needs, fostering a supportive workplace environment.

Trakstar excels in providing intuitive tools for goal alignment and real-time feedback, enabling a transparent and collaborative performance process. Its data-driven insights support targeted development, ensuring employees and teams continuously grow and improve.

Trakstar Best Features

• Goal Setting & Tracking: Facilitate effective talent management with SMART goal setting features, allowing for clear assessments and progress tracking.
• 360° Review Feedback: Adopt a more holistic view of employee performance with 360° feedback.
• Automated Reminders: Streamline the review process with automated emails and integration with communication tools, reducing the manual effort of chasing down reviews and approvals.
• Detailed Reporting: Gain actionable insights into performance with advanced reporting features, including employee score trends and cycle progress, to make informed improvement steps.

Limitations

• The UX could be better and needs more rework.
• High learning curve for the product.

Pricing

The pricing isn't available on their site, so you'll need to ask them for a quote.

G2 Rating: 4.3

Actus provides a complete performance management platform designed to support employee growth. It makes goal setting, feedback collection, and performance evaluation easy and effective. With tools for quick feedback and recognition, Actus allows coaches and advisors to support employees in real time.

The platform’s performance management features help businesses make informed decisions and strengthen workplace relationships. With its versatile features and intuitive design, Actus empowers organizations to drive employee learning and advancement.

Actus excels at offering real-time feedback and support through coaches and advisors, creating a supportive environment for growth. Its user-friendly tools promote continuous learning and development, helping employees and teams reach their full potential.

Actus Best Features

• Objective Setting: Facilitates the establishment and monitoring of SMART objectives aligned with organizational goals, enhancing clarity and focus across all levels of the organization.
• Appraisals: Supports flexible appraisal templates and workflows to accommodate various review types, including check-ins and probationary reviews, with features to incorporate behavioral competencies and performance ratings.
• One to One Meetings: Encourages regular 1 to 1 discussions, turning the software from an appraisal tool into an indispensable management asset.
• Development, Training, and Qualifications: Advocates for a comprehensive approach to employee development, from identifying training needs in real-time to tracking progress in key competencies, supporting a workforce that is continuously learning and growing.

Limitations

• Times out very quickly when not in use.
• Takes time importing and exporting data.

Pricing

Starts at $3.9/user/month for 50-60 employees. To know about their pricing, visit their page where a slider calculator could give you more insight.

G2 Rating: 4.6

PeopleGoal is a flexible performance management software that encourages collaboration and goal achievement. It tracks, measures, and scores success to ensure fair and transparent assessments.

With 360-degree feedback, PeopleGoal collects insights from peers, supervisors, and clients, creating a well-rounded view of performance. By analyzing performance data, organizations can enhance employee skills and customize training programs, supporting a thriving workplace environment.

PeopleGoal excels in delivering fair, comprehensive evaluations with its 360-degree feedback, ensuring everyone’s voice is heard. Its data-driven approach allows companies to identify skill gaps and design personalized development plans, fostering continuous growth and engagement.

PeopleGoal Best Features

• Dynamic Goal Setting: With PeopleGoal, establish, track, and manage goals with ease. Whether you're working with OKRs, SMART goals, or weekly tasks, the platform's flexibility supports a variety of goal-setting methodologies.
• Comprehensive Reviews: Adapt to any review format—peer reviews, 360-degree feedback, or check-ins—tailoring the process to fit different groups and timelines. This versatility ensures every team member receives relevant and constructive feedback.
• Recognition and Rewards: Connect performance achievements directly to recognition and rewards, fostering a culture of appreciation that boosts morale and motivates employees to excel.
• Continuous Communication: Facilitate ongoing dialogue between managers and employees about goals, achievements, and areas for development.

Limitations

• Difficulty navigating through past goals.
• No option to compare reviews with self-evaluations.

Pricing

PeopleGoal hasn't disclosed their pricing, so you'll need to book a demo with them.

G2 Rating: 4.7

We know the list looks a bit extensive, but it's good to be thorough when it comes to choosing tools that can potentially alter the trajectory of your business. A performance management tool can make or break your business, so we hope this list helped you choose one that aligns with your company specifications and future objectives. 

An essential component of managing staff members in your company is performance management, which involves ongoing feedback and communication. It's a process that is always changing, with new trends appearing far too frequently every year.

Companies today see the value of having strong performance management systems in place since, in the absence of them, employees become disengaged, demotivated, and less productive. 

In the absence of effective performance management system, it will get overwhelming to manage your staff members' work, both individually and collectively. Thus, performance management is an official, strategic procedure whose main objective is to match the goals of each individual employee with those of the company. This procedure is linked to decisions made by the company on bonuses, raises, promotions, and even layoffs. 

"A good performance management system is as important as a good organizational board."

A suitable performance management software/system allows you to continuously monitor, assess, and improve your employees' performance without any discrepencies.

Here are a few important features you must consider looking for in a performance management software.

1. A User-Friendly Interface

A decent performance management software should be user-friendly. Ensure your managers and employees are able to utilize the application without tedious training.

2. Customizability

Every company has different performance evaluation methods. Having the right tool will allow you to customize it in order to meet your organization's goals, values, and key performance indicators.

3. Goal Setting and Alignment

‍Performance management software should assist managers with setting goals for their teams and following up with these goals accurately.

4. Regular Feedback Mechanism

‍80% of employees would rather get feedback right away than have a job review once a year. The right performance management software allows you to regularly schedule performance reviews. This timely feedback helps employees improve continuously.

5. 360-Degree Feedback

360-feedback is a tool which is a part of the performance management software; and it gathers insights from managers, peers, subordinates, and other stakeholders, offering a well-rounded view of an employee's performance. It allows both your managers and your employees to compare these peer-ratings with their own self-evaluations, thereby enhancing self-awareness and development opportunities. Learn about the best 360-degree feedback tools here.

6. Reports

The platform that you select should be able to generate reports that visualize an employees' performance, strengths, and weaknesses.

1. Employees are Able to Value Who they are 

Performance management software empowers employees by giving them a voice. When employees have the opportunity to share their thoughts and perspectives, they feel valued. Knowing that their contributions and opinions matter to the company can motivate them to perform better.

More importantly, these tools compare self-evaluations with peer-ratings and provides a detailed report of the subject's strengths and areas of improvement.

2. Better Functionality

There is a platform for both the appraiser and the appraisee to voice their opinions. This facilitates the discussion of issues and problem areas. They are aware of the employee's advantages and disadvantages when given the opportunity to present their case. If employees are aware of the issue areas, having a thorough grasp of them can help them perform better.

3. Time-Saving 

With performance management software, you can establish and design policies for entire departments at once. Instead of creating new policies each time, you can quickly assign existing policies to individuals based on their job title, team, or department. This approach streamlines the process, saving time and effort, especially when onboarding new hires.

4. Quick Response

With automated reminders, performance management software tools allow you to set different timeframes for staff evaluations.

For example, you can schedule monthly evaluations for probationary employees and semi-annual feedback for permanent staff. This flexibility ensures that evaluations are tailored to each employee's needs, rather than relying on a one-size-fits-all annual report.

Performance management software is evolving rapidly with the integration of AI and machine learning, reshaping how managers and employees connect. Features like 360-degree feedback, real-time tracking, and personalized development plans are making conversations more impactful and decisions more data-driven than ever.

Additionally, cloud-based access and collaboration tools have made it easier for teams of all sizes to engage seamlessly. Integration with other productivity and HR platforms further boosts the software’s efficiency and overall value.

What innovations do you think the future will bring to performance management software?