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Performance management software allows managers to establish standards for their employees. These tools make it easy to evaluate job performance and streamline employee development. 

Without performance management software, managers and employees alike typically rely on annual or quarterly performance reviews. But these meetings are inefficient from a day-to-day operational perspective. 

By leveraging modern solutions, organizations can benefit from continuous performance management from anywhere.

These tools improve productivity and keep everyone on the same page. Employees will also have a deeper understanding of how they contribute to the company’s overall goals and mission.

What’s the best performance management software on the market today? Find out below.

Namely Logo

Namely

Best All-in-One Talent Management Platform

Namely is a modular all-in-one talent management platform for small to midsize businesses looking for a better way to manage HR processes. It includes solutions for onboarding, recruiting, payroll, attendance, and more, making it a versatile and flexible all-in-one HR solution without breaking the bank. Snag your free demo and custom quote today!

The Best Performance Management Software Options to Consider:

  1. Namely — Best all-in-one talent management platform
  2. Workday — Best for human capital management
  3. Cornerstone OnDemand — Best for identifying top performers
  4. Lattice — Best for employee feedback
  5. Reflektive — Best for 1:1 reviews
  6. 7Geese — Best for remote employee management
  7. Eloomi — Best for employee development

When it Makes Sense to Invest Into Performance Management Software

The vast majority of organizations can benefit from performance management software. If you’re currently conducting monthly, quarterly, or annual performance reviews with your staff, this type of software will improve your process.

Some performance management tools are all-in-one solutions for HR and talent acquisition. They can handle the entire employee lifecycle, starting with training and onboarding. 

Employees with remote workers should definitely consider performance management software because it makes it easier for management to establish clear goals and objectives without any in-person interactions. 

Even for traditional office environments, performance management solutions are crucial. Managers can quickly provide real-time feedback and reviews to their staff without interrupting daily tasks. 

When managers feel like they need to improve communication and transparency with their employees, performance management tools can solve these problems. 

Very small businesses with just a handful of employees can probably get away without performance management software. This is especially true if management has tons of one-on-one interactions with staff on a regular basis. But as companies scale and feedback gets harder to manage, upgrading to performance management software becomes a must. 

#1 – Namely — The Best All-in-One Talent Management Platform

Namely Logo

Namely

Best All-in-One Talent Management Platform

Namely is a modular all-in-one talent management platform for small to midsize businesses looking for a better way to manage HR processes. It includes solutions for onboarding, recruiting, payroll, attendance, and more, making it a versatile and flexible all-in-one HR solution without breaking the bank. Snag your free demo and custom quote today!

Namely is branded as a “people operations platform.” It’s an all-in-one solution for human resources, payroll, benefits administration, and talent management. 

Mid-sized organizations looking for a complete HR tool with built-in talent management features can rely on Namely for everything.

One unique feature of Namely is the ability for employees to give self-reviews about their performance. This is a great way to determine if management and staff see eye-to-eye in specific categories. 

As an all-in-one solution, Namely also has features for employee onboarding. So you can set the tone with performance expectations from the very beginning of the employee lifecycle. 

Some of the top features of Namely’s performance management tools include:

  • Unlimited performance reviews and assessments
  • Customized templates
  • Automated review cycles
  • Set performance goals
  • Define competencies
  • Tracking specific tasks and processes across each department
  • Employee appreciation and recognition

Namely makes it easy to collect performance-related questionnaires from management, employees, and peers so that decision-makers can see a holistic view of everyone’s performance. 

To get the most out of Namely, consider adding on extensions for time and attendance, recruiting, payroll, and other modules. 

Namely does not publish pricing on their website, but you can compare the offerings and request a free demo to see the tool.

#2 – Workday Review — The Best for Human Capital Management

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Workday

Best for Human Capital Management

Get everything you need to manage your most valuable asset—humans—in one place. With Workday, you can quickly create a skills-based talent management strategy that makes long-term employee development a breeze. It includes various feedback methods, detailed development plans, self-service dashboards, payroll, HR, and recruitment capabilities.

Workday is another software provider with a wide range of product offerings and solutions. But human capital management (HCM) is definitely their specialty.

The HCM platform allows managers to create a skills-based talent strategy. This makes it easier for managers to develop talent and set employees up for long-term success.

Organizations can use Workday for talent acquisition, skills development, curated learning, and talent development. The software is ideal for providing feedback to employees at any time. Whether the feedback is positive or negative, managers don’t have to wait for an annual review to let employees know how they’re doing. 

Workday also supports continuous coaching and ongoing feedback directly within the platform. 

As a complete HCM software, Workday offers advantages like:

  • Human resources management
  • Payroll and workforce management
  • Employee self-service tools
  • Talent recruitment
  • Detailed analytics and reporting
  • Goal setting
  • Employee check-ins
  • Employee development plans

The software is easy to use and is built to scale. Industry leaders like GE, Comcast, and Dell all rely on Workday for performance management. 

You can view a three-minute demo video and testimonials from clients on the Workday website and contact the sales team to set up your own HCM and performance management system. 

#3 – Cornerstone OnDemand Review — The Best for Identifying Top Performers

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Cornerstone OnDemand

Best for Identifying Top Performers

Start visually assessing your top employees automatically while getting everything you need to close the skills gap throughout your talent pipeline with real-time data and analytics. Includes the ability to create development paths, automatically categorize employees, reward top performers, and create observation checklists so no one falls through the cracks.

Cornerstone OnDemand is a cloud-based performance management tool for businesses of all sizes. It’s used across a wide range of industries, including education, hospitality, retail, manufacturing, life sciences, financial services, business services, technology, and more.

Over 42 million people in 192 countries rely on Cornerstone OnDemand for various software needs. They’ve been providing business solutions for over 20 years.

One unique standout of Cornerstone OnDemand is the ability for management to differentiate the talent on their staff. The software has built-in tools to assess employee capabilities, identify top performers, and close the skill gaps throughout their talent pipeline.

Cornerstone OnDemand gives management a visual tool for keeping an eye on performance. Managers can also put employees into internal categories like “future leader” or “high potential.” Any staff that needs extra attention could be placed in a “monitoring” category, so nobody falls behind. 

Other noteworthy highlights of Cornerstone OnDemand include:

  • Create and manage employee development plans
  • Add employee objectives
  • Review workflows
  • Ability to manage both team and individual goals
  • Reward top performers
  • Categorize staff by location or department
  • Observation checklists
  • Compliant performance processes

Cornerstone OnDemand really stands out from the crowd with its unique visualizations and dashboards. These tools allow managers to make more confident talent decisions based on real-time insights and data. 

Whether you have a team of 20, 200, or 2,000 employees, Cornerstone OnDemand can accommodate your performance management needs. Request a demo to get started and discuss your needs. 

#4 – Lattice Review — The Best for Employee Feedback

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Lattice

Best for Employee Feedback

Get everything you need to manage employee performance without the extra HR features you’re never going to use. Known for its simplicity, Lattice makes continuous employee feedback loops a breeze while encouraging employees to improve over time. Includes goal setting, growth plans, 1:1 meetings, peer reviews, and unique roles based on user settings so everyone sees what they need to.

Lattice is a standalone performance management software. If you’re looking for a simple solution and do not need advanced HR features, this software is perfect for your business.

Slack, Asana, and Reddit, among more than 2000 other companies, trust Lattice for their performance management needs. 

Compared to other solutions on the market today, Lattice is simple and straightforward. It’s easy for managers to provide helpful feedback to employees based on their performance. Everything is managed from a user-friendly dashboard.

With Lattice, feedback can be collected from both managers and peers. It’s excellent for highlighting accomplishments and pointing out areas for improvement.

Here’s a quick overview of how companies are benefiting from Lattice:

  • Setting goals and OKRs
  • One-on-one meetings
  • Growth plans
  • Continuous feedback
  • Employee praise and recognition
  • Real-time updates and priorities

Any employee can provide feedback about a co-worker or manager at any time through Lattice, whether good or bad. This culture of continuous feedback is ideal for talent development. 

Lattice offers performance management solutions from different perspectives. Employees, managers, and HR departments all have different needs. So, the software provides unique roles to various users. 

Schedule a free demo to get started with Lattice. 

#5 – Reflektive Review — The Best Performance Management Software For 1:1 Reviews

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Reflektive

Best for 1:1 Reviews

Looking for a better way to schedule, manage, and conduct 1:1 employee reviews? Reflektive delivers everything you need to increase retention and boost performance across your entire business with personalized reviews designed to help you build better relationships. Users can also request feedback from anyone on the team, set goals, create action plans, and more.

Reflektive is designed to improve employee engagement and boost performance. Organizations that use Reflektive for performance management also benefit from higher employee retention rates.

Well-known companies like Airbnb, Eventbrite, and Squarespace all rely on Reflektive for performance management.

The software is perfect for managers who want to build better relationships with their employees. It comes with tools to improve one-on-one meetings regularly, so managers and employees can track meetings and action items over time. 

Another cool feature of Reflektive is the ability for people to request feedback about their performance. They can request feedback from within their team, from management, or from anyone else in the company. People can even ask for feedback about and from their co-workers.

Noteworthy features of Reflektive include:

  • Individual goal setting
  • Team goals
  • Company goal alignment
  • Scalable 1:1 meetings
  • Continuous performance reviews
  • Employee check-ins
  • Employee recognition and achievements
  • Benchmarks and sentiment analysis
  • Suggested action plans

Reflektive really puts a strong focus on growth and development. It’s perfect for managers with a hands-on management style who want to keep an open line of communication with their staff. 

Reach out to the Reflektive sales team for a performance management consultation today. 

#6 – 7Geese Review — The Best For Remote Employee Management

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7Geese

Best for Remote Teams

Remote teams face their own set of challenges and setbacks since face-to-face conversations don’t exist. 7Geese understands these challenges and delivers a specialized employee management solution tailored to your business. With it, you can easily track career progressions, schedule 1:1 meetings, identify development opportunities, and recognize high-performance employees even when you’re not together in the office. Starts at $10 per user per month with a $3,000 annual minimum.

With remote work becoming the new normal in so many industries, managers are forced to adapt. Traditional performance management isn’t really made for remote work. 

But 7Geese makes it easy for managers to stay connected with fully or partially remote teams, regardless of location.

7Geese isn’t quite as well-known or popular as some of the other solutions on the market today. But it was recently acquired by Paycor, an industry leader in the HR space with 30+ years of experience. So, you can expect big things from 7Geese in the future. 

Let’s take a closer look at how 7Geese helps facilitate remote performance management:

  • Objectives and OKRs
  • 1:1s and coaching for employees
  • 360-degree feedback
  • Employee engagement surveys
  • Performance reviews
  • Performance recognition 

7Geese seamlessly integrates with business tools you’re likely already using, like Slack, Salesforce, Microsoft Teams, BambooHR, Zapier, and more.

The software has unique features for tracking the career progression of employees. Built-in analytics make it easy to identify which employees are ready for a promotion, a new challenge, or development opportunity—even while working remotely. 

Plans start at $10 per user per month. 7Geese has a $3,000 annual minimum requirement for all pricing tiers, so it’s not the most cost-effective option for small teams. But if you have 20-25 employees or more, it is a great value. You can also request a demo to see it in action. 

#7 – Eloomi Review — The Best For Employee Development

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Eloomi

Best for Employee Development

Continuous development leads to happier and more engaged employees, happier managers, and a better business. Eloomi delivers everything you need to onboard, hire, and train your employees with a major focus on continuous education and developmental growth plans over time. Includes performance appraisals, employee check-ins, 360-degree feedback capabilities, and more.

Eloomi is another standalone solution for performance management. This cloud-based software is designed to empower employees. Businesses in more than 25 countries rely on Eloomi for their performance management needs.

Companies of all sizes use Eloomi to improve engagement, motivate their staff, and develop employees. 

Don’t mistake Eloomi’s simplicity for lack of capability. This is one of the most robust performance management solutions on the market today. It offers both basic and advanced solutions for businesses.

One of the best parts of Eloomi is its 360-degree feedback feature, where employees can be evaluated by peers, colleagues, and managers throughout the organization.

Other top benefits of Eloomi include:

  • Performance appraisals
  • Employee check-ins
  • Quick performance dialogues
  • Employee objectives
  • Operational checklists
  • Reports and insights
  • Surveys and engagement

Eloomi also has solutions for onboarding, training, and compliance. Book a free demo and request pricing to get started. 

Methodology For Choosing The Best Performance Management Software

With so many performance management solutions to choose from, finding the best option for your business can feel like a tall task. But there are certain factors that you can use to help narrow down your choices. Take the following methodology into consideration as you’re shopping for performance management software. These factors are also what we used to narrow down the list for this guide.

Breadth of Software

Performance management software comes in all different shapes and sizes. Lots of HR software and HCM software come with built-in tools for performance management. Other times, these solutions are offered as standalone products.

The right software choice for you depends on the needs and size of your organization. Larger companies tend to go for the all-in-one solutions, as these come with other crucial capabilities like payroll, benefits administration, time and attendance, and more. 

But not everyone needs these additional modules or functionalities. Smaller teams will be just fine with a standalone performance management tool.

Goal Setting and Objectives

Goal setting is a crucial component of performance management. How can you assess someone’s performance if you don’t know which goals, objectives, and OKRs to measure?

This feature keeps managers and employees on the same page. 

Goals should be established from an individual, team, and company-wide perspective. Managers can use this feature to ensure everyone’s goals are aligned from different viewpoints. 

Setting objectives will also keep employees on track between reviews. 

Make sure you’re reviewing the goal setting and tracking capabilities and depth of each tool to see what will work best for your team and how easy it is to adjust goals and review performance.

Reviews and Feedback

Performance reviews are a significant part of any performance management solution. But the best tools help facilitate continuous feedback. 

Waiting for a monthly one-on-one meeting to provide feedback isn’t always productive. Look for software that allows managers to send feedback in-real time. 360-degree feedback features are important to have, as well. This will enable reviews and assessments to come from other team members and people throughout an organization instead of just management. 

360-degree feedback provides a holistic view of employee performance beyond what someone’s direct manager sees.  

Talent Development

The best performance management solutions go above and beyond basic reviews and feedback. Look for features that help managers identify top-level talent and fill in skills gaps across a team and company.

Simply telling an employee that they’re doing a good or bad job isn’t enough. Talent development tools drive engagement and motivate employees to do their best. They also help employees establish long-term goals and elevate their careers within the company. 

Managers can work directly with employees to help them move up the ladder and achieve their career goals. Getting a performance management solution with talent development tools helps organizations improve retention and reduce employee churn. 

Namely Logo

Namely

Best All-in-One Talent Management Platform

Namely is a modular all-in-one talent management platform for small to midsize businesses looking for a better way to manage HR processes. It includes solutions for onboarding, recruiting, payroll, attendance, and more, making it a versatile and flexible all-in-one HR solution without breaking the bank. Snag your free demo and custom quote today!

Summary

What’s the best performance management solution on the market today? The answer varies based on your needs.

Companies seeking an all-in-one solution that goes above and beyond performance management should consider Namely. Workday is another popular all-in-one software for human capital management. 

Cornerstone OnDemand helps managers identify top performers with visual dashboards. Lattice and Reflektive are great options for basic employee feedback and 1:1 reviews. 7Geese is our top pick for organizations with remote employees. Eloomi is the best for talent development. 

This article was written by today’s Daily Eggspert.

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