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Performance
7 Min Read

Should You Use an HRIS Platform for Performance Management?

Claire Beveridge

Successful employee programs rely on accurate data and insights, which is achievable only with the right tech stack.

Some businesses lean on their HR Information System (HRIS) to fulfill all of the needs of HR leaders, including gathering insights into employee performance… but an HRIS on its own is ill-equipped to manage the demands of effective performance management. 

The solution is to use performance management software that integrates with your HRIS platform to provide a complete solution for HR leaders.

Let’s take a closer look. 

HRIS platform vs. performance management system: what’s the difference?

HRIS platform

Human Resource Information System (HRIS) or Human Capital Management (HCM) platforms serve as the backbone, standardizing, maintaining, and managing vital employee information and HR policies. In essence, an HRIS is the integration of HR activities and information technology, acting as the central repository for people-related data within an organization. 

The HRIS is essentially the system of record, facilitating efficient data entry, tracking, and management for administrative HR tasks. By eliminating manual data entry and administrative burdens, HRIS empowers HR teams to enhance their processes and organizational efficiency.

Performance management software

Performance management software is a crucial component of an HR tech stack, designed to streamline and enhance the process of managing and evaluating employee performance within an organization, and improving the overall employee experience. The primary goal of performance management is to align individual and team goals with organizational objectives, provide continuous feedback, and support employee development. There are several types of tools that can fall under the performance management software category, including:

  • Performance review software
  • Employee engagement tools
  • Employee recognition software
  • Goal setting and tracking tools
  • Pulse survey software
  • Or, a comprehensive performance management platform like 15Five that does all of the above and more!

While the HRIS serves as your system of record, the performance management platform should be your system of action. It should enable you to consistently measure performance, engagement, and retention metrics and facilitate continuous improvement in these areas.

Why you shouldn’t rely on an HRIS platform for performance management

Some HRIS platforms out there have begun to incorporate performance management tools into their solutions, which leaves many HR leaders asking: should we entrust our HRIS platform with performance management too?

That’s a valid question – and the answer is, sure, you can probably find a tool that can do most of what you need. But it begs the follow-up question: will it do it all well?

Attempting to cram all HR tasks into one platform is restrictive. Platforms claiming to be all-in-one often fall short across the entire HR spectrum as demands grow more strategic.

And, contrary to concerns, most modern HR tech vendors actively encourage integration, fostering an ecosystem where data flows seamlessly between tools. 

But before we get into why having a dedicated performance management platform that integrates with your HRIS, here are some reasons why relying on an HRIS alone for performance management isn’t a great idea.

Poor analytics and insights

Successful performance management needs robust data, analytics, and insights to identify trends, action items, and areas for improvement. A good performance management platform will provide all of that and more.

In contrast, an HRIS platform will offer some basic reporting functions but may lack the more detailed analytics needed for in-depth insights into employee performance.

Complicated employee experience

Trying to use an HRIS for performance management when it doesn’t have the proper tools or functionality for performance management can be frustrating for employees, potentially leading to disengagement in the workplace.

Inflexibility

A HRIS has one core function: to provide centralized access for HR-related tasks. However, because HRIS platforms often come with customization limits, it can be difficult for businesses to tailor the system to meet specific performance management needs.

Risk of decreased brand perception

Employees may perceive the use of HRIS for performance management as impersonal or overly bureaucratic—especially if the system prioritizes administrative tasks over meaningful performance development initiatives such as feedback, performance reviews, and creating development opportunities. 

The benefits of having a dedicated performance management platform

Having a dedicated performance management platform offers several advantages. First, it provides specialized features tailored specifically for managing and improving employee performance, which many HRIS platforms don’t do. Comprehensive performance management platforms, like 15Five, often offer tools for setting goals, conducting performance reviews, running engagement surveys, and facilitating ongoing performance conversations. And they typically come with advanced analytics capabilities, allowing HR leaders to gain deeper insights into individual and team performance trends. Additionally, dedicated performance management platforms often prioritize user experience, offering intuitive interfaces that enhance engagement and adoption among employees and managers alike.

The solution: integrate HRIS with a performance management platform

As mentioned above, most modern HR tools integrate with each other—meaning you can create an ecosystem where data seamlessly flows between each platform. 

For example, 15Five integrates with Rippling, Bamboo HR, Namely, Workaday, and many other HRIS platforms and business tools.

So, rather than relying on your HRIS to do it all, we recommend investing in a performance management platform that is built for business impact, and can integrate with your existing HRIS platform.

The benefits of having integrated systems include:

Streamlined operational processes

Integration allows for seamless data flow between different HR systems and streamlines HR processes such as recruitment, onboarding, payroll processing, benefits administration, and performance management.

Consistent, accurate data 

Integrating HR platforms ensures that employee data remains consistent across different systems. When information is entered or updated in one system, it automatically reflects in all integrated systems, reducing the risk of data discrepancies and errors.

Improved productivity

Automating data transfer between systems means HR teams spend less time on administrative tasks and more time on strategic initiatives and employee engagement activities.

Enhanced analytics

Integrated HR platforms provide a unified data source for reporting and analytics, allowing HR leaders to gain insights into workforce trends, performance metrics, and other key indicators. This enables data-driven decision-making and strategic workforce planning.

Easy to scale 

Integrated HR platforms are scalable, allowing organizations to adapt to workforce size and structure changes easily. Whether you add new employees, expand into new markets, or integrate with other additional HR systems, a integrated performance management platform can accommodate growth and change.

Compliance

Integrating HR platforms helps ensure compliance with regulatory requirements by facilitating accurate and timely reporting. For example, integrating payroll and time tracking systems can help ensure accurate calculation of wages and adherence to labor laws regarding overtime and leave.

Cost savings

There may be initial costs associated with implementing integration between HR platforms, but the long-term cost savings can be significant. By reducing manual effort, minimizing errors, and improving efficiency, integration ultimately leads to cost savings for your business.

Rather than trying to retrofit your HRSI tool to meet your performance management needs, create a simple solution by integrating and unifying two separate tools. 

15Five: Pairs Well with HRIS Platforms

If you’ve already got an HRIS and are looking to take your HR impact to the next level by investing in a performance management platform that integrates with your HRIS and drives business impact, look no further than 15Five. Our comprehensive performance management platform allows you to get the full picture of  your team’s Engagement, Performance, and Turnover — and helps you take actionable steps to continuously improve on these metrics that matter. With the HR Outcomes Dashboard, you can go to your next board meeting or leadership call with easy-to-use, objective results that connect HR programs to business results. 

15Five doesn’t just act as a complement to your HRIS platform — it actually helps you get more out of it. Your HRIS is great at storing data, but you need that data in 15Five to take action. When you instantly connect your data you can impact outcomes like engagement, retention, and performance faster. The HRIS Connector makes it a breeze to integrate your HRIS platform with 15Five for immediate impact.

Want to learn more about what makes 15Five the performance management platform of choice?   Sign up for a free trial or book a demo today to get started.