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Organizations are increasingly recognizing the crucial role that employee performance management plays in achieving success. According to a study by Bersin by Deloitte, companies with strong performance management systems are 1.5 times more likely to outperform their peers financially.
With the advent of technology, performance management software has become an invaluable tool for businesses looking to streamline processes and enhance employee productivity.
In this blog post, we will explore the 12 best performance management software available, focusing on their unique features, benefits, and pricing.
12 Best Performance Management Software of 2025
Each of the following performance management software carries the necessary capabilities and features you'd require to effectively manage and enhance your organization's performance.
1. ThriveSparrow
ThriveSparrow is a comprehensive performance management software designed to align individual goals with organizational objectives. This software emphasizes continuous feedback and employee development, making it a favorite among companies that prioritize a growth-centric culture.
Key Features
- Continuous Feedback: Enables real-time feedback between employees and managers.
- Goal Setting: Facilitates setting and tracking of SMART goals.
- Performance Reviews: Simplifies the process with customizable review templates.
- Employee Development Plans: Offers tools for career pathing and skill development.
Pricing Details
ThriveSparrow offers 4 pricing plans,
Engage: $3/employee/month
Kudos: $2/employee/month
Performance: $5/employee/month
Goals [OKRs}: $3/employee/month
See if ThriveSparrow is a fit for your organization with a Free Live Demo from our product experts.
2. factoHR
FactoHR automates HR tasks and aligns employee objectives with business goals through performance management software. Its intuitive platform boosts productivity, streamlines operations, and offers anytime access—combining HR tools with technology to save time and strengthen teams.
Key Features
- OKR and Goal Management: Set employee objectives and track progress with clear connections to company goals.
- 360-Degree Feedback System: Collect performance feedback from peers, managers, and team members for complete employee evaluations.
- Automated Performance Reviews: Simplify review processes with ready-made templates and automated workflows that save time.
- Integrated Payroll and HR Tools: Manage payroll, attendance tracking, and HR tasks from one platform to reduce duplicate work.
- Mobile App Access: Give employees self-service tools and HR access through mobile devices for anywhere, anytime use.
Pricing Details
factoHR offers pricing starting at INR 69 per employee on a monthly basis for up to 50 employees. Advanced modules for performance management and payroll are available in higher-tier plans.
3. Bamboo HR
Bamboo HR is a user-friendly performance management software that is ideal for small to medium-sized businesses. It integrates performance management with HR functions, creating a seamless experience.
Key Features
- Integrated HR Suite: Combines performance management with HR data for holistic insights.
- Customizable Performance Reviews: Allows tailoring of review cycles to fit company needs.
- Employee Self-Service: Empowers employees to manage their own goals and feedback.
Pricing Details
Bamboo HR offers a 7-day free trial. To know the pricing, you'll need to contact them directly for a quote.
4. Lattice
Lattice is a performance management software that focuses on enhancing employee engagement and performance through transparent communication and feedback.
Key Features
- 360-Degree Feedback: Facilitates comprehensive feedback from peers, managers, and direct reports.
- OKR Tracking: Allows alignment of individual objectives with company-wide goals.
- Employee Engagement Surveys: Offers insightful analytics on employee satisfaction.
Pricing Details
Lattice provides a pricing plan starting at $11 per user per month, with additional features available in premium plans.
5. Leapsome
Leapsome is a flexible performance management software designed for fast-growing companies that want to streamline reviews and align performance with development. Its modular structure allows organizations to customize features based on their specific goals.
Key Features
- Performance Reviews: Provides customizable review cycles with templates and automation.
- OKRs & Goals: Supports agile goal-setting frameworks and transparent progress tracking.
- Learning & Development: Offers personalized learning paths tied to performance outcomes.
Pricing Details
Book a demo with Leapsome to learn about custom pricing for your organization.
6. 15Five
15Five is a performance management software centered on promoting continuous feedback and employee well-being. It leverages weekly check-ins to keep employees engaged and aligned with company goals.
Key Features
- Weekly Check-Ins: Encourages regular communication between managers and employees.
- Performance Reviews: Provides tools for conducting in-depth performance evaluations.
- Employee Recognition: Features tools for recognizing and rewarding employee achievements.
Pricing Details
15Five's Perform plan starts at $10 per user per month, with combined features of Engage available at $16 per user per month.
7. Engagedly
Engagedly is a robust performance management software that emphasizes employee engagement through gamification and social collaboration.
Key Features:
- Gamification Elements: Motivates employees through leaderboards and badges.
- Social Collaboration Tools: Facilitates team communication and knowledge sharing.
- Competency Management: Assists in identifying and developing employee competencies.
Pricing Details:
Engagedly starts at $5 per user per month that comes with Goals and OKRs as well.
8. SAP SuccessFactors
SAP SuccessFactors is a comprehensive human capital management software that integrates with other SAP solutions for a seamless HR experience.
Key Features:
- Integrated HR Solutions: Combines performance management with other HR functions.
- Talent Management: Offers tools for succession planning and skill development.
- Advanced Analytics: Provides data-driven insights for strategic decision-making.
Pricing Details:
SAP SuccessFactors offers a 30-day free trial for you to check out, and then you can ask them for a custom quote later on.
9. ClearCompany
ClearCompany is a versatile performance management software that offers a range of features designed to improve talent management and employee engagement.
Key Features:
- Goal Alignment: Ensures individual goals are in sync with company objectives.
- Performance Reviews: Simplifies the review process with automated workflows.
- Integrated Talent Management: Provides tools for recruitment, onboarding, and performance tracking.
Pricing Details:
Get a quote from ClearCompany on 3 different modules.
10. Small Improvements
Small Improvements is a lightweight performance-management platform for teams of 10 – 350 employees. Used by 1,000+ teams at companies like Duolingo, Zapier, and SoundCloud, it streamlines reviews, 1-on-1s, objectives, and 360 feedback without the setup burden of larger HR suites.
Key Features:
- Reviews & 360 Feedback: Flexible templates, calibration, and automated reminders keep cycles fair and on schedule.
- 1-on-1 Meetings & Continuous Feedback: Shared agendas, instant praise, and feedback requests encourage ongoing coaching.
- Objectives Tracking: Simple goal dashboards and progress nudges keep teams aligned—no heavyweight OKR framework required.
Pricing Details:
Small Improvements starts at $3 per user per month and includes a 30-day free trial with no minimum seat count.
11. Trakstar
Trakstar is a performance management software that provides a user-friendly interface and comprehensive features to enhance employee evaluations and goal tracking.
Key Features:
- Customizable Review Templates: Allows for tailored appraisals that meet company standards.
- Goal Setting and Tracking: Facilitates the alignment of individual and organizational goals.
- Performance Analytics: Offers insights through detailed reports and dashboards.
Pricing Details:
Trakstar doesn't offer upfront pricing, so you'll need to ask them for a quote.
12. Workday
Workday is a leading cloud-based performance management software known for its hiring and recruitment capabilities among a leading industry user base. It is most suitable for large enterprises.
Key Features:
- Unified System: Integrates performance management with finance, HR, and planning.
- Continuous Feedback: Supports ongoing performance discussions and feedback loops.
- Advanced Reporting: Utilizes AI and machine learning for predictive analytics.
Pricing Details:
Workday doesn't provide an upfront pricing, and offers custom quotes based on the size and requirements of the enterprise.
What is a Performance Management Software?
A performance management software is a tool that allows companies to track, analyze, and enhance employee performance. These systems typically include features such as:
- Goal setting and tracking
- Continuous feedback mechanisms
- Performance reviews and appraisals
- 360-degree feedback
- Analytics and reporting
- Development planning
- Recognition and rewards
Features to Look for In a Performance Management Software
"A good performance management system is as important as a good organizational board."
A suitable performance management tool allows you to continuously monitor, assess, and improve your employees' performance without any discrepencies.
Here are a few important features you must consider looking for in one.
1. A User-Friendly Interface
A decent performance management software should be user-friendly. Ensure your managers and employees are able to utilize the application without tedious training.
2. Customizability
Every company has different performance evaluation methods. Having the right tool will allow you to customize it in order to meet your organization's goals, values, and key performance indicators.
3. Goal Setting and Alignment
Performance management software should assist managers with setting goals for their teams and following up with these goals accurately.
4. Regular Feedback Mechanism
80% of employees would rather get feedback right away than have a job review once a year. The right performance management software allows you to regularly schedule performance reviews. This timely feedback helps employees improve continuously.
5. 360-Degree Feedback
360-degree feedback is a method of evaluating and assessing employee performance, and is a part of the performance management software. With this feature, you can gather insights from managers, peers, subordinates, and other stakeholders, offering a well-rounded view of an employee's performance.
It allows both your managers and your employees to compare these peer-ratings with their own self-evaluations, thereby enhancing self-awareness and development opportunities.
Learn more about the best 360-degree feedback tools.
6. Reports
The platform that you select should be able to generate reports that visualize an employees' performance, strengths, and weaknesses. All of the performance management software platforms listed below consist of all these features.
Benefits of Using a Performance Management Tool
Implementing a performance management tool delivers substantial advantages across multiple organizational dimensions:
Organizational Performance Benefits
- Strategic Alignment: Performance management tools create a direct connection between individual employee goals and broader organizational objectives. This ensures that every team member understands how their work contributes to company success, leading to more focused efforts and better overall results.
- Data-Driven Decision Making: These software provide quantifiable metrics and analytics that enable leaders to make informed decisions about workforce planning, resource allocation, and strategic initiatives. Instead of relying on gut feelings or subjective impressions, managers can access objective performance data.
- Improved Productivity: With clear goals, regular feedback, and performance tracking, employees can prioritize their work more effectively. The platform helps identify and eliminate productivity bottlenecks while recognizing and replicating successful practices across the organization.
Employee Development Benefits
- Targeted Skill Development: Performance management software identify specific skill gaps and learning opportunities for each employee. This enables the creation of personalized development plans that address individual needs while supporting organizational requirements.
- Career Path Visibility: Employees gain clear insight into potential career trajectories within the organization. The system helps them understand what skills and achievements are necessary for advancement, leading to more motivated and engaged workforce planning.
- Continuous Learning Culture: Regular feedback cycles and development planning foster an environment where learning and improvement become ongoing processes rather than annual events.
Engagement and Retention Benefits
- Enhanced Employee Engagement: Regular communication, recognition, and feedback increase employee engagement levels. When employees understand their performance and feel their contributions are valued, they become more invested in their work.
- Improved Retention Rates: Performance management tools contribute to higher retention by providing employees with clear growth opportunities, regular recognition, and transparent evaluation processes. This reduces turnover costs and preserves institutional knowledge.
- Better Work-Life Balance: Efficient performance management reduces administrative burden and enables more flexible work arrangements, contributing to improved employee satisfaction and work-life balance.
These benefits collectively create a more efficient, engaged, and high-performing organization capable of achieving its strategic objectives while fostering employee growth and satisfaction.
How to Implement a Performance Management Software?
Implementing a performance management software requires careful planning and execution. Here's a step-by-step approach:
- Define Objectives and Goals: Establish clear goals as to what you want to accomplish, and how you'd do that with a performance management system.
- Get Leadership Buy-in: Secure support from senior management, and convince them as to how a performance management solution can help you build high-performing teams and streamline the performance review process.
- Train Managers and Employees: Provide comprehensive training on how to use the system, conduct evaluations, give feedback, and set goals.
- Pilot, Test, and Iterate: Get feedback along the way. Ask managers about the current performance management initiatives you're implementing, and how to improve on it. Start with a pilot program in one department, gather feedback, and make adjustments before implementation.
- Communicate Clearly: Ensure all stakeholders understand the purpose, benefits, and processes of the new system.
- Monitor and Adjust: Continuously evaluate the system's effectiveness and make improvements based on user feedback and results.
Recent Trends in Performance Management Software
The performance management software landscape is undergoing significant transformation. Here are the most impactful trends reshaping how organizations approach employee performance:
1. Shift from Annual Reviews to Continuous Feedback
Source: (ClearCompany, 2023)
Annual performance reviews are on the decline—dropping from 82% usage in 2016 to just 54% in 2019. In contrast, organizations that implemented continuous feedback saw a 40% boost in employee engagement and 26% improvement in overall performance.
This shift reflects a growing demand for real-time feedback that’s more relevant, actionable, and better aligned with today’s agile, fast-paced work environments.
2. Rise of AI-Powered Performance Tools
Source: (PeopleFluent, 2024)
Companies using AI in performance management are twice as likely to excel compared to those that don’t. AI enables more objective evaluations, personalized development plans, and helps eliminate bias in assessments.
As AI adoption grows across industries, performance reviews are becoming smarter, faster, and more personalized—leading to better outcomes for both managers and employees.
3. Manager-Employee 1:1s Are Replacing Traditional Reviews
Source: (HR.com, 2024)
41% of organizations now prioritize frequent manager-employee conversations over static annual reviews. Weekly check-ins foster stronger relationships, increase clarity around goals, and make it easier to course-correct quickly.
This trend is driven by the need for ongoing development, especially in hybrid and remote settings where communication gaps are common.
4. Continuous Feedback Is Driving Retention and Engagement
Source: (Betterworks, 2020)
Organizations that deliver frequent, meaningful feedback achieve 44% better retention and 39% higher talent attraction. As employee expectations evolve, especially among Gen Z and millennial workers, they now expect feedback weekly or even daily.
This trend is about creating an environment of trust, learning, and psychological safety.
5. Personalized Development Plans Are Linked to Higher Retention
Source: (IBM, 2023; Unilever, 2023)
Personalized Development Plans (PDPs) are becoming the norm, not a nice-to-have. Companies using PDPs report 40% higher performance, 30% better satisfaction, and up to 82% improvement in retention. As skill gaps widen and career mobility expectations grow, employees value individual growth over blanket performance metrics.
6. Bias in Traditional Reviews Is Fueling Calls for Change
Source: (SHRM, 2023; Textio, 2023; Bonusly, 2023)
Research shows women receive 22% more personality-based feedback and are 28% less likely to receive top performance ratings. Black and Latinx employees receive 2.4x more non-actionable feedback than their white counterparts. These inequities are pushing organizations to adopt more structured, transparent, and data-driven review systems to ensure fairness and reduce bias.
Conclusion
Choosing the right performance management software is crucial for fostering a culture of continuous improvement and achieving business success.
These ten solutions offer a range of features and pricing options to cater to diverse organizational needs. As you consider implementing or upgrading your performance management software, think about what features align best with your company culture and long-term objectives.
We wish you the best of luck building high-performing teams.
