HR BasicsHuman Resources

3 Top-Rated Free Performance Management Software

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Shephalii Kapoor

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Performance management is crucial to align employee efforts with a business’s strategic goals. Optimizing employee performance management requires HR managers to navigate various complex factors, including a lack of goal alignment, ineffective feedback mechanisms, and limited visibility into remote work performance.

With a free performance management tool, HR managers can enhance employees’ productivity without bearing the burden of upfront software costs. But, given the number of options in the market, how do you decide the best fit for your business?

To help you make the right choice, this article highlights in alphabetical order, three top-rated free performance management software products based on verified software reviews.

We’ve categorized these products into two categories—dedicated performance management solutions, and objective and key results (OKR) management solutions with performance management capabilities. Some common features across all products include review reminders and performance tracking.

What is free software?

Free software refers to software that users can access and use without incurring any costs. To meet this criterion, a software solution should grant users free access to either all or some of its features. Software requiring payment after a specific time frame does not qualify as free software.

1. Effy

Effy is an online performance management solution that offers ready-to-use templates and AI-generated reports, such as performance summaries and 360-degree feedback reports, to assess an employee’s work performance. The software features unlimited templates, including 360-degree feedback, annual performance reviews, and mid-year review templates to help HR managers conduct performance reviews and identify deviations from project milestones. It also has a performance development plan (PDP) template that can be customized with employee information, name, and job position and used for developing employee development plans.

Effy supports unlimited users in its free plan. However, it supports only ten employee reviews per quarter. If you need to conduct business-wide employee reviews, upgrade to the paid versions that support up to 30 and 100 reviews per quarter based on your chosen plan.

Free features:

  • Question bank: Create review forms by selecting from various already curated queries that evaluate an employee’s strengths, weaknesses, and performance over a specific period. With a vast question bank, the software saves time creating employee review forms.

  • 360-degree feedback: Collect reviews from multiple sources, such as peers, managers, and subordinates, to facilitate 360-degree feedback. Employees can also nominate particular peers to provide feedback, subject to approval from their managers. 

  • Review reminders: Send reminders to reviewers about the approaching deadline for submitting a review or pending reviews. The feature helps HR managers reach the highest response rate before assessing employee performance. 

Customer support options: Emails and knowledge base

Who should consider Effy?

HR managers looking for AI-generated reports and ready-to-use templates to monitor employee performance can benefit from Effy. With AI-enabled, customizable review template functionality, the software streamlines the review process, making it faster and more efficient for HR professionals. Moreover, its free plan supports unlimited templates, which helps HR managers conduct different types of reviews, including weekly, monthly, quarterly, and year-end performance reviews. 

Analysis performed December 2023

Trial/Free Version

  • Free Trial
  • Free Version

Cost to upgrade

$75 per month

Billing cycle

Annual

Device compatibility

/ Pro tip

Shortlist a performance management solution that allows employees and managers to create specific, measurable, and achievable employee goals aligned with the business’s strategic priorities. The software should facilitate individual and team goal setting and progress monitoring to identify achievements and bottlenecks.

2. Profit.co

Profit.co is an objective and key results (OKR) management solution with performance management capabilities that helps HR teams assess an individual’s performance over time. The software offers six different result types that HR managers can use to measure employee progress on a given objective. These include percentage tracked, milestones tracked, task tracked, increased key performance indicators (KPI), decreased KPI, and control KPI.

These metrics track employee performance by monitoring specific targets, milestones, tasks, and KPIs. 

Profit.co’s free plan supports up to five users and offers basic OKR features, such as a KPI library and inbuilt OKR templates to streamline the process of creating OKRs for HR managers. If you need advanced performance management features, such as a customizable question builder and performance scoring, you need to invest in the software’s paid version.

Free features:

  • KPI library: Create OKRs and measure performance using over 300 inbuilt KPIs, such as revenue growth, profitability, and customer satisfaction in the KPI library. Users can also create their own KPI to be included in this list. 

  • Daily summary notifications: Track various actions, such as pending reviews, assigned key results, and areas that need attention, using summary notifications received via email daily.   

  • Mobile access: Create OKRs, track individual tasks, and assess employee performance using mobile applications. The software offers Android, iOS, and Windows mobile platforms for users' convenience. 

Customer support options: Phone support, emails, and chat

Who should consider Profit.co?

HR managers looking to track employee progress towards specific business objectives can consider Profit.co for their performance management needs. With six different types of key results, the software enables managers to measure varied aspects of employee performance, offering enhanced flexibility and easy customization of business goals. It also improves goal clarity and measurement accuracy, enabling informed decision-making.

Analysis performed December 2023

3. Teamflect

Teamflect is another performance management system built for Microsoft Teams. The software lets managers view review results using a 9-box talent grid format, a grid-based method to measure employee performance levels and potential. As a Teamflect user, HR managers can gather essential data affecting employee performance, including task and goal completion rates, and present these using an integrated 9-box grid.

The free version of the software offers all performance management features to businesses with less than 10 employees. If you wish to board additional employees on the platform, you need to shift to the paid plan, which offers priority email and phone support.

Free features:

  • Customizable performance appraisal: Customize existing appraisal templates by changing the question types, scoring criteria, and more. The software also lets you create your performance appraisal template based on your unique HR needs.  

  • Employee development plans: Create detailed employee development plans (EDP) using EDP templates offered by the software. As an HR manager, you can add these plans to your review to improve the individual performance of employees. 

  • Review signoff: Enable both reviewers and employees to sign performance reviews using an electronic signature. The feature eliminates the need for physical signatures, saving time for HR managers. 

Customer support options: Phone support, emails, and online help center

Who should consider Teamflect?

HR managers looking for a tool to compare how employees, especially the new ones, stack up on a single visual landscape can go for Teamflect. With a 9-box grid talent, the software enables managers to put employees into categories, such as stars, high performers, and core players, based on their potential and performance. This categorization makes it easier for HR managers to decide on important topics, such as selecting employees who require a pay raise or need an action plan to improve performance.

Analysis performed December 2023

Trial/Free Version

  • Free Trial
  • Free Version

Cost to upgrade

$5 per user, per month

Billing cycle

Annual

Device compatibility

/ Pro tip

Opt for a tool with review management features to schedule, conduct, and document performance reviews. The best performance management tool enables employees to evaluate their own performance and receive feedback from multiple sources, such as peers, subordinates, and other stakeholders, offering a comprehensive view of an employee’s performance.

What is the cost to upgrade from a free performance management software to a paid one?

Performance management software upgrades can be as low as $4 per user, per month, or increase up to $32+ per user, per month, depending on various factors—features, customization options, user licenses, integration capabilities, and more. Most employee performance management software typically include the following subscription plans:

  • Free trials: No-cost plans ranging between 14-30 days, giving users access to all or limited software features. These are ideal for businesses that wish to try out a tool before purchasing it.

  • Free versions: Free software plans offer basic features and limited premium feature access. This is ideal for small businesses on a budget.

  • Entry-level plans: Start at $4 per user, per month, and offer limited features. This option is suitable for small businesses or teams with basic feature requirements such as employee engagement surveys, employment development plans, and custom assessments. 

  • Mid-tier plans: Range from $10 to $29 per user, per month and offer features such as unlimited integrations, unlimited custom fields, talent matrix, and multiple scoring modules. These are ideal for businesses that have outgrown basic performance management solutions but don’t require the full range of functionality offered by enterprise-level tools.

  • High-end plans: Advanced plans that cost over $32 per user, per month and offer unlimited users, advanced dashboard features, advanced reporting, and more. These are ideal for teams and departments that need a customized solution.

Hidden costs associated with performance management software

Besides the software license, there may be additional costs associated with performance management software, including

  • Training expenses: Initial training for new users and post-training support can lead to additional costs, especially if the software is complex or requires specialized knowledge.

  • Data migration costs: Migrating data from existing systems to the new performance management tool may require expert assistance and data cleaning, which can escalate the original cost.

  • Support and maintenance: Software updates, technical support, version upgrades, and license management can significantly add to the initial pricing.

Frequently asked questions when selecting free performance management software

Here are some questions to ask employee performance management software providers before making a final purchase:

Does the software offer an employee portal?

The best performance management tool offers an employee portal that enables employees to access their performance, development, and workspace-related information. Employees can use this portal to update personal and professional details, track individual goals, view performance reviews, and access training resources. The portal also serves as a communication platform where employees can receive important announcements about their respective teams or organizations.

Does the tool facilitate self-assessment?

Several free performance management solutions come with self-assessment tools, such as progress tracking, competency assessment, 360-degree feedback, and performance metrics that facilitate employee performance evaluation. Some tools also offer a structured questionnaire that employees can use to reflect on their achievements, strengths, and career aspirations.

Does the software offer mobile support?

Mobile support in performance management software enables employees and managers to access performance-related information anytime, anywhere. It allows for real-time tracking of employee goals, performance metrics, and feedback, ensuring that employees have the latest information on their performance. A performance management system with mobile support also promotes timely collaboration among team members, fostering a culture of continuous improvement.


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About the Author

Shephalii Kapoor profile picture

Shephalii Kapoor is a writer at Capterra. She helps small businesses identify the right software for their needs by analyzing user reviews for top-rated software products. Prior to Capterra, she worked as an assistant content manager at InfoEdge India Ltd. She has also worked in company law, aviation, and real estate. She is a published author and has contributed to various magazines and websites. During her free time, she enjoys reading.

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