14 Best Performance Management Systems of 2024

 

What Is a Performance Management System?

Performance management systems provide the tools you need to track, analyze, and improve your team's performance at work. These systems help managers and HR professionals:

• Evaluate team productivity
• Set and monitor goals
• Deliver timely feedback
• Provide personalized recognition
• Drive better performance

Imagine tracking all your employees in a Google Doc. Things would get messy pretty quickly, especially if you have dozens (or hundreds) of employees with different wants, needs, goals, struggles, and opinions.

Fortunately, modern solutions solve that problem. They transform dreaded annual reviews into platforms for ongoing support and real-time insights.

They go beyond just measuring—they map career paths, align personal ambitions with corporate initiatives, and sprinkle well-deserved rewards and kudos.

It's less about keeping tabs and more about nurturing a thriving performance culture.

HR professionals like effective performance management systems because they streamline work and make their jobs easier—and employees love them because they feel more seen, heard, and recognized. Everyone wins.

 

Why a Good Performance Management System Matters

Performance management processes might start in a spreadsheet, but that'll quickly become unsustainable. As you build your workforce and invest in employees, you'll need a dedicated system you can trust to scale with your business.

Here's why your business needs a performance management system:

• Boosts Employee Engagement: A good system keeps everyone in the loop, gives shoutouts for well-done jobs, and keeps team spirit high. This means more energy, more passion, and more productivity.
• Skyrockets Productivity: When your team knows the score (where they're smashing it and where they're falling short), they're primed to perform better. Real-time feedback and clear goals keep everyone moving towards those big company wins.
• Fuels Talent Development: People stick around when they see you're invested in their growth. A strong system doesn't just track performance—it fuels career development. It helps map out skills to develop and new challenges to conquer.
• Improves Talent Retention: Employees who feel appreciated and see a clear path to personal and professional growth are likelier to stay with your business. Less turnover, more team stability, better work—it's a pattern you want.
• Aligns Individual Goals with Company Objectives: Individual goals and company priorities shouldn't be separate concepts. Performance management systems help you (and employees) see the big picture and set everyone up to win.

Factors to Look for in a Performance Management System

Not all performance management systems are created equal. Some prioritize different aspects of the management cycle, while others cut features to make them more budget-friendly.

Once you start looking through your options, these are the primary factors you'll want to consider:

• Features: Check out what the system can do. Does it support continuous feedback, goal management, and recognition programs? Make sure it provides all the features you need to improve your team's performance and keep them engaged.
• Price: Look for a system that offers transparent pricing without hidden costs. Whether it's a monthly subscription or a one-time purchase, it should fit your budget and provide a ROI.
• Scalability: Can the system grow with you? Find a tool that scales with your business to accommodate more users and evolving needs.
• Ease of Use: Performance management systems should not feel like rocket science. The system should have an easy-to-use interface that everyone can navigate without a manual.
• Customization: One size doesn't fit all. Look for a system that lets you tweak settings, modify processes, and configure features to align perfectly with your structure and workflows.
• Integrations: A great system should play nice with other software you're using—be it HR, payroll, or project management tools. The last thing you want is more open tabs.
• Analytics and Reporting: Data is great, but you don't just want more numbers—you want insights. Your system should provide analytics and reporting to help you make informed decisions. Look for dashboards that provide real-time insights and easy-to-read data.

 

RELATED: 7 Benefits Administration Software Systems for 2024

14 Best Performance Management Systems of 2024

A quick Google search will send you down an endless rabbit hole looking for the best performance management system.

We're here to simplify your search.

We've done the work to find, research, and evaluate the best solutions on the market.

From budget-breaking software with all the bells and whistles to minimalist platforms perfect for startups—there's something here for every type of team and company.

1. Workday

Workday is a cloud-based performance management system for medium-to-large-sized businesses. It provides everything from employee performance and career history to development plans, salary, and employee benefits.

It integrates with other HR tools to streamline employee management in one easy-to-use, convenient place.

 

Key Features:

• Holistic Employee Views: Provides a complete view of each employee's performance, career history, and development plans in one place.
• Adaptive Insights: Uses predictive performance expectations to guide workforce planning and performance improvements.
• Continuous Development Frameworks: Supports continuous career development with ongoing feedback and goal-setting.
• Integrated Learning Management: Combines learning opportunities with performance feedback to align employee growth with organizational goals.
• Mobile Accessibility: Lets managers and employees engage with their performance metrics and feedback anywhere, anytime.

2. BambooHR

BambooHR is a simple, easy-to-use, effective performance management system designed for medium-sized businesses. Its focus on simplicity and streamlined processes make it perfect for small teams that want to do more with less.

BambooHR isn't the most robust or feature-rich tool on the market, but it's one of the easiest to use.

Key Features:

• Employee Self-Assessment: Encourages employees to engage actively in their own performance evaluations.
• Automated Performance Reviews: Simplifies the review process with customizable templates and automated reminders.
• Goal Tracking: Lets employees and managers set and track progress on short and long-term goals.
• Peer Feedback: Creates a culture of open communication by allowing peer-to-peer feedback within the team.

3. ADP

ADP Workforce Now integrates your payroll, benefits administration software, and other HR systems into one unified experience. It provides deep analytics and insights into your workforce to help you track, predict, and manage employee performance trends.

It's an excellent choice for medium-to-large enterprises that want to take the complexities out of large-scale performance management.

Key Features:

• Comprehensive Performance Tracking: Offers detailed employee performance tracking against set benchmarks and goals.
• Real-Time Feedback Mechanisms: Facilitates ongoing communication and feedback between employees and managers.
• Scalable Solutions: Easily scales to accommodate the growing needs of businesses as they expand.
• Extensive Integration Options: Integrates with other HR and payroll solutions to provide a unified management experience.
• Advanced Reporting Tools: Delivers powerful reporting and analytics to help organizations make informed decisions.

4. 15Five

15Five takes a different approach to performance management. It uses a psychologically intelligent framework to support continuous employee feedback and development. It focuses on weekly check-ins and finding ways to align individual goals with company objectives.

15Five transforms the traditional performance management platform into less performance appraisal and more performance conversations.

Key Features:

• Weekly Check-Ins: Enables regular communication between employees and managers to discuss successes, challenges, and feedback.
• Objective and Key Results (OKRs): Helps teams set and track strategic goals that align individual achievements with company objectives.
• High Five Recognition: Allows team members to publicly recognize each other's contributions and create a positive workplace culture.
• 1-on-1 Toolkits: Supports effective one-on-one meetings with guided agendas and conversation starters.
• Performance Review Automation: Streamlines the review process with customizable review templates and scheduling tools.

5. Lattice

Lattice combines continuous performance management with development tools to focus on growth and feedback. Lattice is all about feedback—it wants to give everyone a voice and an actionable growth plan.

It accomplishes this through employee surveys, peer reviews, goal-setting, and career development frameworks.

 

Key Features:

• Goal Management: Helps employees set and manage SMART goals that align with organizational objectives.
• Feedback Tools: Provides feedback mechanisms like surveys, peer reviews, and manager assessments.
• Career Development Framework: Includes tools for career pathing to help employees understand and pursue their career objectives within the company.
• Engagement Surveys: Offers customizable surveys to gauge employee satisfaction and engagement.
• Integrations: Integrates with popular HRIS systems and productivity tools to keep all employee data connected.

RELATED: 15 Best Employee Survey Tools to Boost Engagement in 2024

6. Paycor

Paycor's performance management software provides a user-friendly interface and extensive integrations. It also adds a built-in LMS system to help employees learn and develop without switching to another platform.

Paycor has adaptable review templates that scale with your business, as well as real-time reporting and analytics.

 

Key Features:

• Scalable Performance Reviews: Adaptable review templates that grow with your business needs.
• Real-Time Reporting: Offers detailed insights and analytics on performance trends and metrics.
• Learning Management: Includes a built-in LMS to simplify continuous learning and development.

7. Culture Amp

Culture Amp leverages cultural analytics and historical data to drive development and performance. Its reporting and dashboards make it easy for management to spot (and address) trending issues and concerns before they escalate.

It's easy for HR managers and stakeholders to build employee surveys, and employees can take them (and even leave feedback on the survey itself) with little to no hand-holding.

Culture AMP is all about providing your business with the insights it needs to make data-driven decisions regarding culture and organizational performance.

 

Key Features:

• Employee Feedback: Uses continuous feedback tools to give employees a voice in their development and the broader company culture.
• Customizable Surveys: Provide simple survey tools to measure engagement and inclusion.
• Performance Analytics: Delivers deep insights into individual and team performance through comprehensive analytics.
• Actionable Insights: Generates clear, actionable reports that help managers with decision-making.
• Integration Capabilities: Connects with other HR tools to provide a cohesive management experience.

8. Namely

Namely is another all-in-one HR solution that combines performance management with payroll and benefits. It passes information between different applications to provide comprehensive employee profiles that incorporate everything from employee feedback to total compensation.

Namely also includes a social news feed that lets peers recognize and celebrate each other in a private company setting.

Key Features:

• Unified HR Suite: Combines performance management with payroll, benefits, and talent management in one platform.
• Customizable Performance Reviews: Offers flexible performance reviews that fit the unique needs of different teams.
• Robust Employee Profiles: Provides comprehensive employee profiles that integrate performance data with other HR information.
• Social News Feed: Features an internal social platform to encourage employee engagement and recognition.
• Compliance Support: Helps your performance management practices comply with current HR laws and best practices.

9. PerformYard

Unlike the all-in-one solutions, PerformYard focuses on one element of human resources: performance management. It provides everything from goal-setting and feedback to 360 reviews and performance evaluations—all without the rest of the clutter and complexities that come with some other platforms.

It's an excellent solution for small businesses that want to focus on performance management without the messiness of broader HR responsibilities.

Key Features:

• Streamlined Performance Reviews: Simplifies the creation, execution, and analysis of performance reviews with customizable templates.
• Goal Management: Allows precise tracking of employee goals with regular updates and progress reports.
• Continuous Feedback: Supports a culture of ongoing feedback with more timely and relevant performance discussions.
• 360 Reviews: Provides comprehensive feedback from multiple sources, including peers, managers, and direct reports.

10. Inspire Software

Inspire Software integrates leadership development directly into its performance management software. It's designed for businesses that want to prioritize leadership and coaching opportunities. Inspire does this through coaching tools, leadership development feedback, and data-backed insights.

The approach turns leadership development into a part of daily operations rather than isolated training sessions.

 

Key Features:

• Leadership Development: Incorporates leadership principles and practices into performance feedback and employee development.
• Continuous Coaching Tools: Offers tools that help managers coach employees regularly.
• Real-Time Feedback and Recognition: Creates ongoing dialogue between employees and managers to improve engagement.

11. Trakstar

Trakstar provides a cloud-based performance management solution that aims to streamline the review process.

It uses automated workflows, reminders, and flexible feedback to make evaluations an ongoing conversation rather than long-winded, drawn-out processes every six months.

 

Key Features:

• Automated Performance Reviews: Simplifies the review process with automated workflows, notifications, and reminders.
• Goal Setting and Tracking: Allows regular updates and adjustments to keep your employees on track to hit their career goals.
• 360-Degree Feedback: Encourages a comprehensive review process by including feedback from all relevant sources.
• Succession Planning: Helps identify and develop future leaders within the organization through its talent management features.
• Rich Analytics: Provides detailed reports and analytics to track progress and identify trends.

12. SAP SuccessFactors

SAP SuccessFactors is a global AI-powered performance management solution designed for large-scale enterprises. It provides everything from automated compliance to talent intelligence to help you better train, engage, and retain your workforce.

It leverages the latest-and-greatest technology solutions to manage (and improve) your employees' performance.

 

Key Features:

• Learning and Development Integration: Integrates with SAP's learning solutions to tie development directly to performance insights.
• Advanced Workforce Analytics: Leverages SAP's powerful analytics to provide actionable insights and forecast workforce needs.
• Global Compliance Features: Automates compliance with local regulations across different regions.
• AI-Assisted Applicant Screening: Uses artificial intelligence to streamline the recruitment process and improve hiring results.
• Talent Intelligence Hub: Provides a centralized platform that aggregates various data points to provide deep insights into talent management.
• Generative AI for HR Tasks: Helps employees accelerate tasks like finding pay statements, approving time off, or requesting feedback.

13. Bob

Bob (by Hibob) is one of the simplest, easy-to-use performance management systems. It provides a user-friendly, decluttered interface for employees and managers while still managing to centralize a lot of data.

Rather than directing you through templates and best practices, Bob hands performance reviews over to do them your way—whether you want to change your cycles, customize reminders, or include different team members.

 

Key Features:

• Culture-Driven Performance Management: Stresses aligning performance management with company culture and values.
• Customizable Performance Tools: Offers flexible tools that can be tailored to match the unique vibe of your organization.
• Integrated Recognition and Rewards: Empowers you to celebrate (and reward) achievements within your workflow.
• Data-Driven Insights: Provides clear, actionable metrics and reports to drive better decisions.
• Employee Lifecycle Management: Integrates performance data throughout the performance management cycle for more comprehensive, unbiased employee reviews.

14. Leapsome

Leapsome provides a comprehensive platform for performance management, employee engagement, OKRs, and development. Leapsome is a great option for companies looking to integrate employee feedback with performance metrics to create a continuous improvement loop.

Key Features:

• Performance Reviews: Automates and customizes performance review cycles to fit your company's needs.
• Smart Goal Setting: Helps employees and managers set goals—and provides a way for you to be more accountable and transparent.
• Learning and Development Modules: Integrates learning directly into the performance management process.

How to Implement a New Performance Management System

Choosing your performance management system might have been tricky, but you're not across the finish line yet. Now, it's time to get your new system up and running.

That might sound as fun as organizing your sock drawer, but it's worth the investment in getting it right the first time.

Here's a quick step-by-step guide to setting up your performance management software for success:

Plan Your Rollout

First impressions matter—both for your backend managers and end-user employees. Think about timelines, training sessions, and support to get everyone on board and up to speed. Communicate with your team about what's changing, why it's changing, and what's in it for them.

 

Train Your Team

Set up training systems to help managers, HR, and employees learn how to use the new system. This helps get buy-in from your teams and guarantees everyone feels comfortable and confident with the change.

 

Launch and Iterate

Launch your new system, but keep the lines of communication open. There's always a learning curve, and feedback will be your best friend during this phase.

Use it to tweak and improve the system. Remember, very few things work perfectly right out of the gate—expect to make adjustments as you go.

 

Evaluate and Improve

After your team has had some time to get acquainted with the new system, take a step back and evaluate how things are going.

Are you seeing the improvements you were aiming for? Are there unexpected challenges? Use this insight to refine and improve your approach.

 

Get Help When You Need It

Your performance management system shouldn't just be a software solution—it should include active help from real-life professionals who want to make your life easier (and know how to do it).

Reach out to your system's support team to get answers to your questions. They might know shortcuts, workarounds, or even custom solutions.

 

Partner with Terryberry to Transform Your Company's Culture Through Engagement & Recognition

While performance management software is important, in order for companies to reach their full potential, they need a holistic approach to the employee experience - and engagement and recognition is more critical now than ever.

That's where Terryberry comes in.

Our customizable program lets you start small and dream big. Begin with what you need now, with the flexibility to build more as your engagement and recognition goals evolve. Craft the perfect mix of employee surveys, recognition, rewards, swag, step challenges, and wellness programs - all in one place.

See for yourself. Schedule a demo with one of our experts to see firsthand how Terryberry can transform your employee engagement with one powerful platform.