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CNBC reported that organizations that actively invest in employee development hold a chance of a 58% increase in retention, given employee development is one of the major reasons why an employee decides to switch.

An article by the Harvard Division of Continuing Education has also revealed that 74% of employees agree that a lack of employee development opportunities hinders them from reaching their full potential, making it necessary for managers to put employee evaluation software in place. 

Managers rely on performance management software to set employee performance standards, evaluate job performance, and facilitate ongoing discussions. HR departments commonly implement these tools to support managers across various departments.

With performance management software, managers can conduct performance reviews, track discussion topics, establish goals, and receive 360-degree feedback. These solutions also assist in organizational planning by ensuring necessary skills and preparing for employee departures.

Integration with compensation management software allows performance appraisal and reviews to impact compensation decisions directly. Here are our top 20 best employee evaluation software.

10 Best Employee Evaluation Software in 2024

The primary factors that enhance user satisfaction with performance management products include "Dashboards And Reports," "Continuous Feedback," "Historical Data," and the question, "Has the product been a good partner in doing business?"

These crucial elements are determined by an algorithm that selects attributes with the highest likelihood of predicting user satisfaction within this category.

1. Xoxoday Empuls

Xoxoday Empuls is an employee engagement software that drives improved performance and retention. With Empuls, you can measure and track feedback, collect eNPS metrics, and conduct pulse surveys.

Learn how Empuls can enhance employee engagement, behavior, involvement, and productivity within the platform. Xoxoday Empuls allows you to create a unique culture of encouragement and motivation.

To do this, the service has 20,000 digital cards. Managers provide quick feedback, and manager always celebrates important events for employees.

Key features

  • Gamification: We have integrated gamified elements into Empuls to make the engagement process fun and interactive, encouraging active employee participation.
  • Analytics: Empuls provides data-driven insights and performance analytics, enabling organizations to identify top performers and areas for improvement.
  • Rewards: Empuls fosters a culture of appreciation by facilitating peer-to-peer and manager-to-employee recognition, as well as providing rewards for achievements.
  • Communication tools: Our platform promotes effective communication and engagement across teams through features like announcements, surveys, and feedback mechanisms.

Why Xoxoday Empuls is the best: Xoxoday Empuls excels with its comprehensive approach to engaging employees. Its extensive array of functionalities spans recognition and rewards, communication tools, performance analytics, and gamification. It has everything for managing and motivating the workforce.

Pros

  • Offers a comprehensive solution for employee engagement.
  • Features a user-friendly interface and allows for easy customization.
  • Provides data-driven insights to facilitate informed decision-making.
  • Promotes a positive workplace culture and collaboration.
  • Supports remote and hybrid work environments.

Cons

  • Effective utilization of some advanced features may require additional training.
  • Seamless integration with certain HR systems could be improved.
  • Pricing structure

Pricing structure: Xoxoday Empuls offers good value for money. If you want to be a good leader in a small team (up to 200 people), the basic version of the software may be enough for you, for only 1 euro per person per month. For companies that need an extended number of functions, you can purchase the software at an estimated price of 3 euros.

Case studies:

  • A digital healthcare enterprise has witnessed a substantial surge in employee engagement by implementing a robust recognition and rewards strategy on the Xoxoday Empuls platform. Through this innovative approach, the company managed to achieve an impressive 2x increase in engagement levels.
  • Leading travel company boosts engagement with Xoxoday Empuls R&R programs. Motivated employees drive exceptional customer experiences. Customized initiatives elevate engagement, fostering teamwork and success.

Companies using Xoxoday Empuls:

  • Brenntag
  • Luminous
  • Magzter
  • Adobe
  • Bosch

G2 rating: 4.6 out of 5 stars

Capterra ratings: 4.5 out of 5 stars

2. Lattice

Lattice serves as the comprehensive People Management Platform that unifies tools, workflows, and insights. It empowers organizations to cultivate engaged and high-performing employees within a thriving culture.

With three consecutive appearances on the Inc. The company has been ranked among the fastest-growing private companies 3 times in a row. Plus, 99% of employees think it's a great place to work.

Key features

  • Feedback: With Lattice, managers and employees can offer real-time feedback.
  • Goal: Lattice empowers organizations to establish and propagate goals throughout the entire company
  • Rewards: The platform enables peer-to-peer recognition and establishes mechanisms for acknowledging and rewarding employees' contributions.
  • Analytics: Lattice offers data-driven insights into employee performance, engagement, and development, empowering organizations to make informed decisions.

Why Lattice is the best: Lattice is an all-encompassing platform that seamlessly combines performance management, feedback, development, and engagement. Its user-friendly interface, commitment to continuous improvement, real-time feedback, and alignment with business goals establish it as a frontrunner in the industry.

Pros

  • Weekly updates
  • Growth paths
  • Goal management
  • Helps you track against clear goals in one place
  • Progress reports

Cons

  • The interface is a little bit difficult to navigate.
  • There is no way to check off or complete goals.

Pricing structure: The app offers a basic service rate for all users. The price is $8 per user. In this mode, all the functions and capabilities of the platform for tracking employee engagement are available.

Case studies:

  • Stansell Electric. Stansell Electric has experienced a significant rise in employee engagement with IDPs since the introduction of Lattice. For nearly eight years, we have utilized individual development plan forms, but completion rates have been low, with only a few being finished. However, within just one week of implementing Lattice Grow, both managers and employees demonstrated keen interest. Our leaders are increasingly drawn to it, leading to higher completion rates, improved quality, and enhanced organizational consistency.
  • Agero. The Agero team has witnessed impressive outcomes so far, achieving a remarkable 98% completion rate for reviews and a high rate of 1:1 feature usage. The success is attributed, in part, to cross-functional collaboration and support from senior leaders and stakeholders within the organization. Throughout the company, working with leaders has facilitated the establishment of a consistent enterprise framework encompassing knowledge, skills, productivity, and desired outcomes across roles.

Companies using Lattice:

  • Slack;
  • Cruise;
  • Reddit;
  • Gusto.

G2 rating: 4.7 out of 5 stars

Capterra ratings: 4.5 out of 5 stars

3. PerformYard

PerformYard serves as a comprehensive employee performance toolkit. This employee evaluation software streamlined performance reviews, check-ins, goal management, continuous feedback, and engagement surveys. The platform establishes a natural feedback loop.

PerformYard consolidates review cycles, goals, feedback, and performance data analysis in one intuitive platform. If you know exactly the value of employee engagement, you can benefit from this software.

PerformYard Engagement allows you to deploy anonymous engagement surveys and insightful visual data to cultivate an energized and productive company culture.

Key features

  • Advanced data collection. There are a lot of indicators, filters, and tools for data collection.
  • Powerful people management features. Each employee has a profile and you can customize it, set goals for it, or transfer it between projects.
  • 360-degree feedback. A comprehensive feedback loop helps everyone in management positions make informed decisions.
  • Track progress. You can set goals and the platform will track your progress if possible. Plus, there is manual input of the goal achievement level.
  • KPIs. The platform offers dozens of indicators that can help you understand employee engagement and productivity.

Why PerformYard is the best: PerformYard empowers you to construct a tailor-made performance management process that aligns seamlessly with your distinct company culture.

Accommodating the diverse needs of organizations, the product delivers extensive capabilities. Rather than enforcing a rigid performance management process, PerformYard optimizes your unique performance management approach, enabling seamless streamlining.

Pros

  • Enables goal tracking
  • Provides reviews
  • Offers user-friendly experience
  • Boasts user interface
  • Provides customer service

Cons

  • Lacks user-friendly approach
  • Presents performance issues
  • Encounters technical issues

Pricing structure: Software services are priced in the range of $5 to $10. It all depends on your team and company. The more users and features required, the higher the price. The exact price is only on request.

Case studies:

  • VCC utilizes PerformYard's data to assess high-potential employees and monitor their progress and development. It's an excellent means of identifying and observing potential future leaders within the company. Promoting from within is strongly encouraged here at VCC whenever feasible. Additionally, VCC leverages PerformYard to assess the company's progress toward goals and how they align with the overall mission and values. As VCC says: “We now have a holistic view of company-wide performance year after year. Moving forward, we can further enhance each review cycle.”
  • Western National. One significant advantage for managers, especially when employees switch roles within the company, is the ability to access and review their prior performance records. Western National is actively assessing its performance management processes, particularly in light of the COVID-19 pandemic. The company is confident that PerformYard can accommodate any future direction the company decides to take. PerformYard's flexibility plays a vital role in achieving their ongoing adjustments and adaptations.

Companies using PerformYard:

  • Accesso
  • VS Engineering Automates
  • NGM
  • SERA Architects
  • Five Star

G2 rating: 4.7 out of 5 stars

Capterra ratings: 4.8 out of 5 stars

4. Motivosity

Motivosity, the employee experience platform, empowers companies to address crucial moments in the employee journey. The platform creates an engaging experience that fosters community and connection, encourages frequent recognition and manager development, and provides valuable employee insights.

With an impressive 96% adoption rate and seamless integrations with Slack, Microsoft Teams, ADP, Workday, or any HRIS, Motivosity offers a user-friendly solution. It streamlines your job while keeping employees satisfied.

Key features

  • Motivosity empowers employees to give and receive recognition from their peers, fostering a culture of appreciation and motivation.
  • The platform offers the capability to provide small monetary bonuses as a token of appreciation.
  • Motivosity includes features for creating team challenges and goals, promoting collaboration, and friendly competition.
  • The platform provides valuable insights into recognizing trends, enabling organizations to identify top performers and areas of engagement.
  • Motivosity seamlessly integrates with communication tools like Slack, streamlining the incorporation of recognition within existing workflows.

Why Motivosity is the best: Motivosity shines as a top-notch platform for boosting employee recognition and engagement. It sets itself apart by prioritizing peer-to-peer recognition, and tangible rewards, and seamlessly integrating with communication tools.

Pros

  • Internal social collaboration
  • Grouping to connect with same-minded people internally
  • Recognise and track whose got more points
  • Leaderboard

Cons

  • The desktop app is not the greatest
  • Would be nice to navigate sent/received bucks

Pricing structure: Fixed rate Motivosity - $2 per employee.

Case studies:

  • Workfront. Starting from February 2015, Workfront adopted Motivosity, a social recognition platform that is widely used by employees both inside and outside the company's Utah headquarters. According to Austin Miller, the Vice President of Human Resources, receiving public appreciation through Motivosity creates a positive impact. Additionally, Miller highlighted the platform's ability to provide unexpected insights and analytics that were previously unexplored or considered impractical.
  • Deseret First. Initially, there were skeptics within the leadership team when proposing and implementing Motivosity. However, the results quickly convinced them of the effectiveness of gratitude in the workplace. Shane London, CEO of DFCU, has become a firm believer in the importance of showing gratitude and fostering connections at work. Moreover, he now recognizes the significant role executive engagement plays in ensuring employees feel valued in the workplace.

Companies using Motivosity:

  • Big Leap
  • Bluehost
  • HealthCatalyst
  • Jet Dental
  • Instructure

G2 rating: 4.7 out of 5 stars

Capterra ratings: 4.8 out of 5 stars

5. HROne

HROne is an advanced HCM suite that automates HR processes, simplifies human interactions, and provides actionable insights for creating better workplaces. Their focus is to revolutionize HR operations by streamlining functions throughout the employee lifecycle.

Key features

  • They offer a complimentary mobile app to empower users with the full potential of HR automation, anytime, anywhere.
  • A Gmail-inspired inbox for HR professionals to better navigate their day.
  • Innovative task insights for optimal time management.
  • Intuitive global search functionality to quickly access information and a system that delivers real ROI.

Why HROne is the best: One feature of HROne that we liked the most and proved to be of importance ‘Inbox For HR’. Allowing all HR functions to be performed in real time from a single window without the need to juggle different modules for performing and completing 20+ tasks makes a huge difference.

Pros

  • Data management
  • Leave and attendance
  • The attendance management facility to mark regular attendance
  • You can look at yearly holidays
  • HROne offers Google-like searches that are semantic, predictive, and action-based

Cons

  • Expense Management
  • Payroll

Pricing structure: The basic version of the app is available for as little as $1 per employee per month. The professional version costs $1.4 per employee. For the sake of fairness, review software should be noted that prices can be negotiated, there is a manual mode for collecting software functions.

Case studies:

  • RocketReach. Undoubtedly, HROne software has relieved us of 99% of the HR burden. The after-sale support we receive is amazing, providing quick responses whenever we encounter obstacles or confusion.
  • VishwaRaj Hospital. HROne has significantly improved our efficiency in performing HR activities and processes. It effectively resolved our shift management challenges, eliminating the need for employees to manually reach managers.

Companies using HROne:

  • Droom
  • Pay Nearby
  • Caliber
  • Uplers
  • Piramal

G2 rating: 4.6 out of 5 stars

Capterra ratings: 4.3 out of 5 stars

6. Rallyware

Rallyware offers a multifunctional application that facilitates learning, execution, and engagement. Every interaction on the Rallyware platform is finely tuned to optimize key performance indicators.

Noteworthy global enterprises such as Avon, Samsung, and Tupperware leverage Rallyware to bolster sales force productivity by an impressive 32%. Rallyware's comprehensive platform encompasses learning and development tools, incentives and recognition, seamless communication, clienteling, onboarding, and more.

Key features

  • Enable your workforce to access personalized learning and development content precisely when they need it most. Customize and configure your company's learning materials. Rallyware's data-driven rules and recommendations engine distribute content tailored to help individuals reach their fullest potential.
  • Recognition Drive high-performance behaviors in your workforce by utilizing automated I&R tools that are effortless to set up and launch, while remaining user-friendly.
  • Motivate your teams. You can visualize their progress through goal-based widgets. This helps provide personalized tasks to achieve their KPIs.

Why Rallyware is the best:

Pros

  • The customer support is of high quality
  • Ability to lock and unlock key performance indicators
  • Convenient control of access to content and the ability to edit it
  • Extensive library of miniatures and learning resources

Cons

  • It is a bit challenging to find the content someone is interested in.
  • Users say the search function needs improvement.
  • There is no option to remove archived content from a student's access.

Pricing structure: There is no public list with prices for services, you need to contact and communicate in person.

Case studies:

  • Avon. Rallyware collaborated closely with New Avon to create a customized training solution, seamlessly integrating their existing learning materials into the Rallyware platform. By leveraging proprietary algorithms, Rallyware transformed and reorganized the training content, offering a more guided and engaging training experience. This optimization resulted in improved retention and prevented representatives from feeling overwhelmed. Furthermore, Rallyware has developed a suite of programs to enhance New Avon's onboarding process.
  • Intersport Elverys. To address a sell-through issue with a prominent global footwear brand's SKUs, Elverys, Intersport's key member in Ireland, took a fresh approach. Chris Rowland, an experienced buyer at Elverys, noticed a decline in sell-through for a specific product variant, raising concerns about its connection with consumers and Elverys' sales staff. Rallyware quickly discovered the lack of sales and came up with a solution. Adding new videos to a product resulted in a 40% increase in product sales.

Companies using Rallyware:

  • Casio
  • Samsung
  • Avon
  • Nike
  • Tupperware

G2 rating: 4.8 out of 5 stars

Capterra ratings: 5 out of 5 stars

7. Leapsome

Forward-thinking companies, such as Spotify, monday.com, and Unity, rely on Leapsome's platform to bridge the gap between performance management, employee engagement, and learning.

Leapsome integrates tools for Goals & OKRs Management, Performance Reviews and 360s, Development Frameworks, and Employee Learning & Onboarding.

Key features

  • Performance evaluations: Leapsome streamlines the process of conducting performance evaluations.
  • Goal management: Leapsome helps organizations set, track, and align goals.
  • Continuous feedback: Leapsome prioritizes ongoing feedback with real-time communication among team members.
  • Feedback: The platform enables employees to receive input from peers, managers, and self-assessment.

Why Leapsome is the best: Leapsome stands out as an exceptional platform in the performance management and employee development landscape. Its holistic approach fosters growth and feedback.

Leapsome leads the way in driving employee development and engagement within organizations.

Pros

  • Organizations can customize features to align with their processes
  • The platform fosters a culture of continuous learning and feedback
  • The platform covers performance management and development comprehensively
  • It has a user-friendly interface that facilitates easy adoption
  • Data-driven insights enable strategic decision-making

Cons

  • Fully exploring and utilizing all features may require some users to invest time
  • Pricing could be a factor for smaller businesses to consider

Pricing structure: Services will cost $8 per person per month. Paid annually.

Case studies:

  • Billie. Leapsome saves significant time during performance appraisals and fosters an open, value-oriented feedback culture. After comparing various platforms, Leapsome stands out due to its user-friendliness, intuitive interface, and high level of customization.
  • DCMN. We consider the People team as a collaborative partner rather than an administrative team. Our primary focus is on our employees, placing less emphasis on processes. Through Leapsome, we have automated the manual tasks related to feedback and career development. This allowed us to dedicate more time to our people: understanding their needs, guiding them through their personalized DCMN lifecycle.

Companies using Leapsome:

  • Bolt
  • Unity
  • Spotify
  • Monday
  • Northvolt

G2 rating: 4.8 out of 5 stars

Capterra ratings: 4.7 out of 5 stars

8. BambooHR

BambooHR ensures a seamless all-in-one experience by optimizing efficiency. Streamline your people operations effortlessly and sustainably with automation for key functions, tasks, and integrations.

Digitize signature collection and tracking for a smooth and well-coordinated employee lifecycle. Consolidate employee, payroll, time, and benefit information with utmost accuracy, security, and coordination in one centralized platform provided. Rest easy knowing that your organization is running smoothly.

Key features

  • A centralized database employee for efficient data management.
  • Benefit and payroll administration to simplify your compensation processes.
  • Global capabilities to support your international operations.
  • An applicant tracking system to streamline your recruitment process.
  • Time and attendance tracking.
  • Document storage and management. eSignature capabilities for convenient and paperless document signing.
  • Performance management tools to drive employee engagement and productivity.
  • Reports and analytics to gain valuable insights into your workforce. Alerts for training deadlines, license renewals, birthdays, and more.

Why BambooHR is the best: The main advantage of BambooHR is its easy implementation in small teams and mid-level businesses. Technical support will help you set up and integrate the software into your HR department. They provide templates and all the necessary data for quick import. If you prioritize software simplicity, BambooHR is ideal.

Pros

  • Time tracking
  • Paid time off
  • Onboarding
  • Employee Directory
  • Docusign stuff

Cons

  • There is no employee presence function at the workplace
  • A section where employees feature' birthdays is missing.

Pricing structure: On request

Case studies:

  • MMA Design. Sandy Sorzano, the People + Brand Director at MMA Design, takes great care to safeguard the company's cherished and close-knit culture. When unproductive procedures began encroaching on valuable time dedicated to nurturing and maintaining this culture, Sandy recognized the need for a transformation. By introducing BambooHR Benefits Administration, she has increased increased bandwidth to prioritize and devote attention to her strategic initiatives.
  • Indica Labs. The dedicated implementation team at BambooHR, with clear project milestones, assisted Indica Labs in successfully implementing the software within a month. Additionally, BambooHR provided templates and instructions that made the transition to a paperless system smooth and effortless, allowing for greater efficiency and productivity.

Companies using BambooHR:

  • Zenefits
  • Cezanne
  • Zoho
  • Namely
  • Workday

G2 rating: 4.5 out of 5 stars

Capterra ratings: 4.6 out of 5 star

9. Zoho People

Now is the moment to transition from an ERP system to an Employee Engagement platform. With Zoho People, an online HRIS, you can effortlessly maintain your employee database, efficiently manage your workforce, and achieve consistency in all HR processes. Instantly lighten your HR staff's workload!

Key features

  • Efficiently manage your data. Employee database management system simplifies and secures data collection and storage. Centralize all your employee records in one location for easy organization and maintenance.
  • Simplify HR management effortlessly. Zoho People equips your HR staff and employees with the necessary tools to enhance efficiency, productivity, and up-to-date processes, even while on the go.
  • Enhance performance evaluations. Revamp your review process to drive positive employee development. Continuously exchange feedback, utilize evaluation modules like KRA and Goals, and customize your appraisal cycle.
  • Intuitive corporate learning management system. Zoho People's LMS offers a user-friendly platform to effortlessly create and manage your organization's training programs. Develop courses, monitor employee progress, and help your team master new skills.
  • Streamline case management. Provide a seamless mechanism for employees to contact HR. With Zoho People, employees can initiate queries, while HR effectively sorts, tracks, and resolves issues promptly.

Why Zoho People is the best: Zoho People offers a huge number of additional features and flexible pricing. Any company can find more complex technologies, such as tracking KPIs, tracking SLI cases, a system for blended self-learning, and relatively simple functions.

Plus Zoho People is only part of a fairly large ecosystem, so it can be convenient to use several software from this developer at once.

Pros

  • The best implementation of integration with mail among all services
  • High speed
  • Many service packages to choose from
  • Modern interface
  • Has all the modern employee engagement tracking features

Cons

  • There are failures to complete actions
  • The mobile version is not as stable as the desktop version

Pricing structure: Basic version – $1.25; Professional - $2; Premium – $3; Enterprise - $4.5; People Plus - $9. The price depends on the number of functions.

Case studies:

  • Keepcalling. We are extremely satisfied with the services provided by Zoho. One great advantage is their continuous improvement of the platform, enhancing its usability every day. Moreover, each new update introduces additional features and customization options, boosting the efficiency and user-friendliness of the website.
  • Tabtree IT Consulting. Zoho People enables us to save valuable time and resources. With the majority of our workforce operating in the field, the convenient mobile check-in/ check-out feature simplifies our tasks. By utilizing Zoho People, we can streamline all employee time off requests, effortlessly track employee information, and automate numerous tasks.

Companies using Zoho People:

  • Gep
  • MacDonalds
  • Meesho
  • Zomato
  • SpiceJet

G2 rating: 4.4 out of 5 stars

Capterra ratings: 4.3 out of 5 star

Factors to Consider While Choosing the Software/Tool

1. Key Features

Besides the mentioned core features, I thoroughly evaluated other key features to compile my top 10 choices:

  • Actionable performance reports: The software should gather and organize data in a transparent reporting dashboard, enabling HR employees to present their findings to the management team effectively.
  • Consistent feedback structure: The employee evaluation tool ought to assist your organization in establishing a consistent feedback structure, simplifying the process of giving and receiving performance reviews for your employees.
  • Advanced goal management and OKR tracking: Assessing employee performance becomes challenging without tracking team and organizational goals. Therefore, the software should aid in setting and tracking performance metrics at all levels.

2. Functionality

To secure a spot in this top 10 list of performance management software, a solution must possess the following essential features:

  • Sending automatic notifications to employees and managers for check-ins, performance reviews, or completed tasks.
  • Implementing diverse feedback collection methods, such as 1:1 tools, 360-degree feedback, or other continuous feedback mechanisms.
  • Providing user-friendly tools for setting and tracking employee goals.
  • Offering visualization features that present employee progress over time through informative graphs and charts, rather than dull numerical reports.

3. Usability

I made every effort to choose intuitive and user-friendly tools, ensuring a smooth employee evaluation process. Our goal is for your HR professionals to easily utilize the software's features with minimal training, allowing for a faster rollout of your employee evaluation process.

Additionally, the majority of platforms are customizable and cloud-based, allowing you to tailor them to your unique performance management needs.

4. Price-to-feature ratio

I select platforms that assist your team in accomplishing multiple goals within a single system, providing a superior return on investment.

Additionally, I have indicated whether any systems offer complimentary trials or demos, and some systems even provide free plans (referred to as freemium plans) to allow you to test the system before committing to a contract.

5. Integrations

I picked solutions that seamlessly integrate with various human resources software, such as HRIS and HR management platforms, which store employee data. Additionally, I sought out integrations with other apps and SaaS tools like payroll, time-tracking, and employee communication tools, such as Slack.

Final Thoughts

If you know enough to value employee engagement, you won't have to be convinced of the need for employee evaluation software.

Using all 5 pillars of effective communication, your business can be on top of the world, but it's all gradual. If you don't go for it, you will never know how far you can go.

Unlock the Biggest Secret of Engagement to Retain your Top Performers.
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