Performance management software helps organizations track and improve employee performance against set goals and workplace expectations. It supports managers in evaluating job performance, monitoring progress, and aligning individual growth with organizational goals. Companies use performance management software to facilitate meaningful and ongoing discussions between managers, direct reports, peers, and other coworkers.
HR departments most commonly implement performance management software to support managerial staff throughout various departments. These tools enable users to conduct employee performance reviews, maintain a record of discussion topics, establish and track employee goals, and enable 360-degree feedback. Some performance management solutions also assist HR departments in identifying essential skills within the organization and plan for succession contingencies in case of employee departure, either directly or through integrations with skill management and succession planning software. Performance management software can be implemented as a standalone solution or part of an integrated HR management suite. Many integrate with compensation management software, linking performance reviews to salary-related decisions.
Note: Products can’t belong to both performance management systems and 360 feedback software. If peer review capabilities are the primary focus, 360 feedback software is a better fit.
To qualify for inclusion in the Performance Management category, a product must:
- Facilitate the employee performance review process
- Enable 360-degree feedback among managers, employees, and peers
- Track individual employees goals
- Allow users to evaluate employee performance benchmarked against overarching company goals
- Generate in-depth dashboards or reports based on performance data
