How to Evaluate and Choose Performance Management Software

Employee reviews are essential for driving individual growth and overall company success. Yet too often, the performance management process is outdated, inefficient, and time-consuming for both managers and employees. In today’s digital-first world, there’s no reason it should be this hard.

Luckily, performance management systems can eliminate many of these common pain points and streamline the review process. But are they right for your company? What do you need to know to find the right solution? This guide explains everything you need to know to choose the perfect performance management platform.

What is a performance management tool?

Performance management (PM) software streamlines the way businesses track employee performance, set actionable goals, manage performance review cycles, and provide timely, accurate feedback all in one place. 

Bringing performance data together in a single dashboard empowers managers to:

• Conduct faster, more accurate, and unbiased performance reviews
• Track individual and team progress in real time
• Lead meaningful performance conversations
• Identify struggling employees faster so they can get the support they need to succeed
• Make informed decisions about development, recognition, and resourcing

Traditionally, performance reviews occur just once or twice a year, often making them stressful, time-consuming, and ineffective, as they rely on employees and managers recalling goals and events from months ago. But performance management tools can help reduce the administrative burden of reviews and even make them more effective. 

When review time finally rolls around, managers have everything they need at their fingertips — goals, feedback, self-assessments, peer reviews, and more — so they can deliver fair, well-rounded evaluations in a fraction of the time. As a result, managers become expert career coaches, employees are happier, and HR spends less time on paperwork and more time on what matters: their employees. 

10 Best Performance Management Tools

Overwhelmed by all the performance management options? Here's a rundown of the top solutions, G2 user reviews, and pros and cons. 

Lattice

⭐ G2 Rating: 4.7/5 stars 

Lattice is an AI-powered people and performance management platform designed to transform how your company approaches employee performance, engagement, and development. Use it to track individual employee performance, provide timely feedback, set individual and organizational goals, make one-on-ones more effective, and leverage workforce insights to drive business impact.

Lattice goes beyond just making annual reviews easier. It also helps teams build 360-degree feedback loops, keep employees engaged with action plans, and create integrated workflows that drive long-term employee growth. 

Trusted by over 5,000 companies — including Webflow, Robinhood, Duolingo, and Loom — Lattice helps organizations drive performance, align teams, and build a culture of growth. Ready to get started with Lattice? Request a demo. 

Pros: 

• Provides a centralized location for HR administration, goals, reviews, and feedback 
• Transparent pricing structure 
• Simple and straightforward to use 

Cons: 

• May require training to make the most of all the features 

Learn more about how Lattice can help your company drive growth and save you money with The Total Economic Impact of Lattice guide. 

15Five 

⭐ G2 Rating: 4.6/5 stars 

15Five is a performance management platform that drives employee growth and helps managers navigate employee reviews, one-on-one meetings, and objective tracking. Features of note include "high fives," which make it easier to provide employee praise, and detailed reporting tools to track engagement, objectives, and feedback. 

Pros: 

• Designed with remote teams in mind 
• "Temperature checks" help managers check in with employees regularly 
• Integrates with Slack, Salesforce, and Google Calendar 

Cons: 

• Limited training for the platform 
• Limited integrations with other platforms, like Jira

HiBob HRIS

⭐ G2 Rating: 4.5/5 stars 

HiBob HRIS is a performance management platform designed to help improve productivity, engagement, and employee retention. Top features include 360-degree performance reviews, ongoing one-on-ones, goal tracking, and customizable reporting tools to help businesses understand and invest in their employees. 

Pros: 

• Intuitive, user-friendly platform 
• Helpful and responsive customer service
• Fuels continuous communication so employees feel heard and engaged 

Cons:

• Doesn’t support weighted goals
• Customization options may be too limited for organizations with complex needs
• Frequent platform design changes can leave employees confused

PerformYard 

⭐ G2 Rating: 4.7/5 stars 

The PerformYard Performance Management platform helps employees stay connected and motivated. Popular features include employee reviews and check-ins, goal management, onboarding workflows, and document storage. The platform is easy to use and leverages automation to streamline employee management tasks. 

Pros: 

• Offers several HRIS features, including a company directory, activity logs, and enterprise-level security 
• Easy-to-use dashboard 
• Dedicated success manager to help new companies get up and running fast 

Cons:

• Limited video tutorials for set-up 
• Limited search function 
• Limited reporting capabilities 

Leapsome 

⭐ G2 Rating: 4.8/5 stars 

Leapsome is a performance management solution designed to help businesses manage employee performance and create customizable engagement plans. Top features include performance review management, OKRs, one-on-one meeting management, training, and engagement surveys. 

Pros: 

• Customizable packages allow you to pay for just the features you need 
• Designed specifically to help businesses scale 
• Visual reporting tools make it easy to check in on employees

Cons:

• Uses a "modular" pricing structure, which can add up quickly for teams that want access to all features
• Not user-friendly 
• Limited integrations 

HROne

⭐ G2 Rating: 4.8/5 stars 

HROne is an HRMS and HCM suite that helps businesses streamline HR tasks and manage the entire employee lifecycle. Its performance management tools include continuous feedback, goal setting, 360-degree reviews, a 9-box talent matrix, and robust reporting capabilities — helping organizations evaluate employee performance, facilitate feedback, and identify leadership potential.

Pros: 

• Individual and team tracking features 
• Homepage widget provides quick performance insights
• Mobile app lets managers view team performance on the go 

Cons:

• Occasional slowdowns during new feature rollouts
• Mobile app has limited functionality
• Reports often require manual consolidation

Culture Amp

⭐ G2 Rating: 4.5/5 stars 

Culture Amp is a "people and culture platform" designed to help companies understand engagement, evaluations, reviews, and goal tracking across their company. Features of note include 360 reviews, continuous feedback capabilities, performance evaluations, surveys, and powerful reporting tools. 

Pros: 

• Actionable insights on engagement, performance, and retention 
• Support for set-up and launch 
• Provides survey templates, which make it easy to check in with employees on a range of topics 

Cons: 

• Importing past reviews is challenging 
• Reporting tools are not user-friendly
• Limited admin functions 

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Rippling 

⭐ G2 Rating: 4.8/5 stars 

Rippling is an HCM solution offering payroll, HR, and IT platforms, although performance management tools can be added to its core functionality for an additional fee. These tools include reviews, goal-setting, calibrations, and detailed reporting. 

Pros: 

• User-friendly, intuitive interface 
• Strong integrations with a wide range of HR tech tools
• Streamlined onboarding modules that seamlessly align IT and HR tasks

Cons:

• Performance management tools are not included in the core platform
• Support is limited to chat
• Pricing may be high for small to mid-sized businesses

Deel

⭐ G2 Rating: 4.8/5 stars 

Deel is a payroll, compliance, and HR platform designed to support global businesses. The company also offers talent management tools, including OKRs and goal setting, career frameworks, 360-degree reviews, and performance analytics tools. 

Pros: 

• Clean, intuitive interface that's easy to navigate
• Fast and reliable payment processing
• Helps ensure accurate, timely payments and compliance, no matter where your employees are located

Cons: 

• Customer support can be slow during peak times
• Performance tools require purchasing the Engage add-on
• Reporting features offer limited customization options

BambooHR 

⭐ G2 Rating: 4.4/5 stars 

BambooHR is a complete HR system that helps small and medium-sized businesses manage payroll, applicants, time-off requests, and improve employee performance. Performance management features include streamlined employee performance appraisals, goal tracking, and individual and company-wide performance reports. 

Pros: 

• Start-to-finish HR software, so you don't have to juggle multiple tools 
• Well-reviewed customer support 
• Powerful reporting tools 

Cons: 

• Not ideal for fast-growing or enterprise companies 
• Not user-friendly; features like document management can be challenging to use
• Lack of transparency in pricing makes it difficult to compare to other options 

Core Features and Functions of Performance Management Software

Not all performance management tools are created equal, but most solutions offer similar features designed to improve and streamline goal setting, performance reviews, and career conversations. 

Here are a few functions and features you can expect, no matter which performance management system you choose. 

Goal Management

Setting actionable and attainable employee goals is the core of most performance tracking plans. Performance management systems make goal management easier by storing the information in one location and providing access to both employees and their managers. 

These systems provide organization-wide visibility into goals and performance targets at the individual, team, department, and company levels. This transparency boosts accountability, helps employees understand how their work connects to broader initiatives, and enables managers to make smarter data-driven decisions about their teams and resources.

Performance Reviews 

Whether you conduct performance reviews or performance appraisals quarterly, annually, or somewhere in between, a performance management system can make the review process less stressful and more effective. 

Managers and employees can track current performance, create new goals, review past achievements, and view specific key performance indicators (KPIs). This helps employees see what goals they have met — or missed — and highlight which employees might benefit from training or career development. Plus, 360-degree feedback and calibrations help keep employee ratings unbiased, consistent, and fair throughout your entire organization.

One-on-One Meetings 

Most performance management systems also streamline recurring one-on-one meetings between managers and their direct reports. With features like collaborative agendas and trackable action items, these tools help keep conversations focused and productive.

Some platforms, like Lattice, can even surface key employee data points — like goal progress, growth areas, and employee sentiment — so managers can spend less time digging through their notes and more time building stronger relationships with and coaching their teams.

Continuous Feedback 

Ongoing feedback empowers employees to adjust and grow in the moment — rather than waiting for a formal review, when feedback can come too late to make an impact. Most performance management solutions offer built-in tools for giving and requesting continuous feedback year-round. Real-time feedback helps employees make timely, targeted improvements and take ownership of their development.

Employee Recognition and Praise

Some platforms also include employee recognition tools, making it easy for team members to celebrate each other’s wins and shout out great work in the moment. Employees receive a notification when they've been recognized, and often the praise is tied to a company value. This kind of recognition plays a key role in shaping the employee experience, fostering a more positive, connected workplace, and reinforcing a company culture of appreciation.

Career Development Plans 

Career growth and development are key to keeping employees engaged and happy. Most PM systems offer career and employee development tools that let employees and managers collaborate on goals and expectations for the future. Employees can share where they are struggling or what new skills and competencies they would like to learn, and managers can provide resources and feedback to help employees reach their full potential. 

Reporting and Analytics 

What good is having data if you can't use it? Reporting and analytical tools help get the most out of performance management data by allowing managers to track individual employee performance over time, gauge how employees feel about topics like the quality of leadership, and view reports about overall company performance. Together, this information helps managers make informed decisions about their teams — identifying high performers, addressing areas of concern, and aligning talent strategies with business goals.

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Benefits of Using Performance Management Tools

Switching from your current performance management system (or spreadsheet) can feel overwhelming. Is it worth the effort and the cost? 

It might be. Consider the following benefits of switching from your current HR processes to a performance management solution. 

Employees feel appreciated and supported. 

Employees are more effective when they feel appreciated and understood. PM systems provide employees with timely, clear communication about their job performance and available training. 

Managers can quickly provide positive feedback to keep employees motivated and engaged with the company. Performance management solutions also reduce the stress (and annoyance) of performance reviews by making the process quicker and more actionable. 

Managers spend less time on evaluations and deliver more actionable feedback. 

Performance management tools help managers streamline the employee review process to provide actionable feedback in less time. That means they have more time to focus on important tasks like analyzing data, developing new revenue streams, or closing deals. 

The data from PM systems can also help managers identify high-performing employees or training gaps, so struggling employees get the support they need to be successful. 

Organizations thrive when performance is managed well.

Happier employees are more productive, but the benefits of a performance management system go beyond productivity. PM systems establish consistent benchmarks to ensure all employees are held to the same standards, reduce paperwork for human resources teams and managers, and improve employee retention by ensuring your team feels supported and appreciated. 

Reducing paperwork and back-and-forth means evaluations can be completed, processed, and tracked faster than ever — which makes it easy to scale as your business grows. 

When should you adopt a performance management tool?

Performance reviews help employees get motivated and access the support they need to stay on track. Many teams use spreadsheets or Google Docs to manage their performance reviews and offer feedback. 

As companies grow, however, the process becomes time-consuming and ineffective. Employees and managers don't have access to real-time feedback, making it hard to stay on track and support long-term goals. Even appraisal systems, which track and measure goals, fail to provide the holistic views growing companies need. 

PM software integrates reviews, goal tracking, and sometimes even training into one easy-to-use platform. This means employees can see their goals and metrics in real time, managers can engage in the moment, and HR teams get access to data about what works — and what doesn't. 

If you already use an HRIS or HCM, a performance management software can add the features you need to improve employee engagement. Some HRIS software does offer performance management tools; however, those features are often limited. Before making a decision, you'll want to consider all your options and decide which features you need most. We'll walk through how to evaluate if performance management software fits your needs in a later section. 

What is the average cost of performance management software? 

How much does performance management software typically cost per employee? Like most software solutions, the pricing can vary dramatically depending on the features and tools you need. 

On average, businesses can expect to spend between $1 and $15 per month per employee on performance review software and management systems. 

That cost can add up, but the ROI of performance management software is clear — it will save your company money in the long run. Here's how: 

• Employees are less likely to leave a job they love. According to the Society for Human Resource Management (SHRM), companies’ average cost to hire a new employee is above $4,000. Higher employee retention is good for your bottom line. 
• Goal setting helps teams focus on what matters. Setting priorities is crucial in a fast-paced business world. Setting goals helps teams stay laser-focused on the skills and priorities that matter, reducing wasted time. 
• Companies get access to more data. Data is no longer a nice-to-have; it's a must-have. Performance management systems offer data-backed reports and analytics you can use to drive smarter business decisions. That can save you money and help the entire company work more efficiently. 

But tread lightly, as not all performance management tools are built the same. In fact, only 2% of surveyed CHROs think their performance management system works, according to a 2024 Gallup report. The good news? With the right solution, your business can be part of the percentage that gets it right — and set your people up to thrive.

An independent report found that the Lattice platform delivers a 195% ROI over three years. Want to learn more?

How to Evaluate Performance Management Software for Your Company

With so many options on the market, it can be challenging to find one PM solution that fits your needs and budget. Here are a few questions to ask vendors before making a decision. 

What features does it offer? 

Make a list of the struggles your company currently faces with the employee management and review process. Do reviews take too long? Do managers struggle to provide employees with actionable goals? Does the process require hours of paperwork? Then, make a list of areas you'd like to improve and ask how the PM system can help. 

Is there sufficient support and training? 

Even the best system won't solve your problems if no one knows how to use it. Does the company offer training to increase adoption rates? Does the platform offer support during your business hours? For example, if your company is in Pacific time and support is only offered during Eastern time, there may be several hours a day when support is unavailable. Don't forget to ask about onboarding support and training, as well. 

What reporting tools does the system offer? 

Reports help managers and executives better gauge employee potential, growth, and overall satisfaction with the company. Ask what reports the system offers, including filters you might need, such as reporting by team, location, time, or employee level. 

Is it compatible with your current systems? 

Performance management software is meant to make it easier to set goals, track employee engagement, and manage the review process. If the system doesn't work with your current communication, login, and HRIS systems, it may create more problems than it solves. Lattice is one solution that offers a broad range of integrations.

Free Performance Management Tools, Templates, and Resources

Looking to inspire team members and create an engaged, high-performance workforce? Setting goals is the first step to driving growth. These free templates can help your team set actionable goals. 

• SMART Goals Template: Use this template to build actionable goals that align with your company targets. 
• Quarterly OKRs Template: Objective and key results help teams and individuals work toward major goals over time. This template helps make OKRs more effective. 
• 30-60-90 Day Plan Template: Create a goal roadmap that sets expectations over time, setting the stage for more effective one-on-ones and performance reviews. 

Partner with Lattice to improve performance management.

The modern workplace is evolving, reshaping how employees work and what they expect from their employers. Now more than ever, companies need tools that keep teams aligned, connected, and empowered to grow.

Lattice is built for the future of work. It helps HR managers and people leaders drive engagement, improve communication, and build high-performing teams with tools like: 

• Lattice Performance Management: Our performance tool helps HR teams and managers run performance reviews, calibrate ratings, lead effective one-on-ones, and build a culture of continuous feedback.
• Lattice OKRs & Goals: Align individual, team, and organizational goals using Lattice’s goal-setting tools, making it easy to track progress, measure success, and drive tangible impact.
• Lattice HRIS: Unlock a holistic view of the employee journey by connecting performance management with essential HR functions like onboarding, payroll, and employee records through Lattice HRIS.

Lattice is more than a performance tool. It’s a complete people management platform designed to help your company and people perform their best. Take an interactive product tour today to see how Lattice can help your employees take ownership of their growth and development.