Here’s how to choose the right HR performance management software

Performance management is one of the most important functions of the human resource department. HR personnel closely work with key people of every department to assess employee performance for the betterment of the staff as well as the company. Today, the HR department of most companies use performance management software to streamline this function.

What makes performance management software useful? There might be many answers to this question, but one factor that remains constant is the software’s features. Features undoubtedly determine the usefulness of performance management software. All performance management software offer a set of features that can help an organization achieve its performance goals.

While choosing software for performance management, an organization must consider the features that they require. Mentioned below are eight features to look for in performance management software. These features can help an organization improve its overall performance and productivity.

Features: The backbone of any performance management software

  • Compatibility: Due to the availability of several HR management software, organizations might face difficulties in finding the right software which will be compatible with their existing technology. Therefore, it is essential to check this feature while opting for any performance management software.
  • Immediate and continuous feedback: Today, there is no longer a system of annual performance reviews and feedback in the fast-paced corporate world. Instead, employers give and receive feedback continuously for managing employee performance. It increases motivation, enhances performance, and elevates engagement between the employees and their employers. With the right use of an HR performance management software, companies can offer performance-related feedback anytime, anywhere.
  • Performance measurement: The performance measurement feature provides comprehensive information about employees’ talent. This information can help managers understand their employees’ strengths, development opportunities, and career goals as well.
  • Job specific reviews: As there are several departments in any organization, it can be helpful to have a performance management software that allows employers or managers to create and customize job-specific performance assessments for accurate reviews.
  • Ability to set and convey new goals: Performance management becomes fruitful when one has the ability to create dynamic goals within the performance management software. This feature also offers a place where one can update their career objectives over time. The management can then ensure that the employee’s career goals are in line with the company’s objectives. It can also be a powerful tool for corporations that want to promote career transparency.
  • Reports: Efficient performance management software must have a feature where managers can generate reports based on employees’ performance.
  • Succession planning: Here, succession planning means having the right tools that will help an employee adjust to their new role within the same organization. The performance management software must have this feature along with career development tools and coaching tools to ensure seamless and proactive succession planning.
  • Actionable information: A performance management software should be able to provide insights that would help an organization understand the areas of improvement. These insights can come from performance metrics and 360-degree feedback. Moreover, to successfully utilize performance management software, an organization must be able to align the performance metrics with its business objectives.

Top HR performance management software
The features mentioned earlier play a significant role in ensuring the efficiency of a performance management software. Therefore, as a small, mid-sized, or enterprise-class business, it is important to learn about as many performance management software as possible that will deliver the desired outcome.

Given below are seven popular HR performance management software.

Performance Pro by HR Performance Solutions
Performance Pro is a cloud-based performance management and appraisal solution ideal for companies with a strength of 50–1000 employees. This software allows users to promote performance management practices while focusing on employee development, coaching, pay-for-performance, and goal or strategy alignment.

Performance Pro offers a free demo to companies. The price of their software starts at around $16.00 per year per user. Additionally, their team provides extensive training through documentation, webinars, live online chatting, and in person interaction to ensure compatibility.

This performance management software provides features like 360-degree feedback, applicant tracking, compensation management, onboarding, performance management, and recruiting management.

Companies from the following industries use Performance Pro:

  • Marketing and advertising
  • Automotive
  • Financial services
  • Non-profit
  • Hospitality
  • Construction

Performly Talent
Performly Talent is another cloud-based performance management software. Performly is innovative and has an interface that allows companies to adopt technologically advanced performance management practices. Thus, it can help an organization utilize their human capital productively.

As far as the competitive edge is concerned, Performly’s performance management features are based on the latest trends, which makes this brand slightly different from others in the market. Additionally, companies that believe in constant productive feedback can rely on Performly as it provides continuous feedback while focusing on the business objectives and results.

Performly Talent has a customer base that comprises of a diverse set of companies from different industries across the globe. Some key companies that use the software are into the following industries:

  • Transportation network
  • Management consulting
  • Real estate
  • Telecommunications
  • Marketing and advertising
  • Internet

BirdDog HR focuses on the performance of an employee from the day they join a company by engaging with them from the start. Companies from all industries including federal contractors, technology, manufacturing, and financial services can benefit from this performance management software.

BirdDogHR comes with over a dozen features while retaining its user-friendliness. Some key features include employment branding, goal monitoring, skill development, gap identification, scorecards, knowledge management, and performance management.

BirdDogHR has received great satisfaction ratings from companies like Zachry Group, Leopardo, Bison, SpawGlass, and more. Some other companies that use BirdDogHR belong to the following industries:

  • Construction
  • Engineering
  • Energy
  • Financial services
  • HVAC
  • Manufacturing
  • Oil and Gas
  • Services
  • Wholesale and supply

Communication is key when it comes to productive feedback. TowerMetriX provides tools for performance management as well as a comprehensive set of communication capabilities that can help an organization maintain an open communication channel between the employees, managers, team leaders, and more. An efficient communication channel can lead to the empowerment of teams within the organization and increase transparency among employees and their managers.

Furthermore, to make the most of any given performance management software, companies need to focus on continuous learning and employee growth. Features that come with TowerMetriX enable a company to consistently pay attention to all aspects of learning and growth.

Some customers of TowerMetriX include Derry Township School District, Helios HR, Meadows Casino, and The Rhodes Group. Some other industries which employ the services of this HR performance management software are:

  • Gambling & Casinos
  • Construction
  • Outsourcing, consultancy, recruiting
  • Education

Workday Human Capital Management
Workday offers performance management under its Human Capital Management suite. It provides organizations with real-time insights, predictive analysis, and global visibility. One of the best features of this software is its ease of use as most of its tools are self-explanatory. Easily fetchable embedded reports is another feature of this software that allows users to analyze employee performance.

Additionally, organizations can be sure that the information they enter in the software remains secure as Workday partners with the most reliable and secure providers of data-centers.

Some popular companies that trust Workday’s enterprise cloud suite for performance management include Netflix, Hewlett Packard Enterprise, Sanofi, Abbott, Bank of America, and TripAdvisor.

Workday has a customer base from many different industries like:

  • Hospitality
  • Insurance
  • Education
  • Life sciences
  • Manufacturing
  • Media and entertainment
  • Nonprofit

TalentGuard Performance Management
This HR performance management software is designed to help small and mid-sized organizations assess, manage, develop, effectively lead, and reward employees. Additionally, the software offers services where the management can evaluate employee performance based on their competency, role-based skills, their development goals, and career objectives.

An interesting fact about TalentGuard Performance Management software is that its design allows the user to create customized assessments that specifically focus on behavior, career and succession paths, job responsibilities, and development plans.

Some of the companies that use TalentGuard’s performance management software include Central City, Endsight, INTEC GROUP, Shaw Sports Turf, Vertech, and more.

TalentGuard has a customer base from many different industries such as:

  • Banking and finance
  • Biotechnology
  • Construction
  • Education
  • Energy
  • Fitness
  • Food and beverage
  • Retail and design
  • Real estate
  • Technology
  • Healthcare
  • Entertainment
  • Government

SAP SuccessFactors
This performance management software created by SAP is designed keeping in mind the comprehensive needs of small and mid-sized businesses. The same software can be used by enterprise-class organizations as well.

SuccessFactors helps an organization with talent solution, collaboration, streamlining core HR functions, and workforce analytics. Thus, it can collectively improve and manage the overall performance of an organization. Furthermore, SuccessFactor throws light on the biggest challenges the organization faces and provides end-to-end integrated business solutions to those challenges.

Some popular companies using SuccessFactors are Accenture PLC, Aasonn LLC, Love’s Travel Stops & Country Stores, Cascades Inc, and ARM Holdings. Industries that use SuccessFactors are mentioned below.

  • Computer software
  • Information technology and services
  • Staffing and recruiting
  • Management consulting
  • Manufacturing
  • Chemicals
  • Construction
  • Financial services
  • Food production
  • Human resources

Each software mentioned above has its own unique selling point and advantages that cater to a given type of organization. Reading the feedback and testimonials of customers can help an organization make a buying decision.

A look at the pros and cons
Learning about the advantages and disadvantages of performance management software is just as important as knowing about their features. Therefore, here are a few pros and cons of utilizing a performance management software that will help an organization make a sound decision:


  • With the use of performance management software, the management can successfully keep everyone in the firm informed and connected.
  • Improved communication due to performance management software can help employees and managers build a positive professional relationship. They can also discuss and solve the problems that they face while working.
  • The right performance management tools can help managers identify bottlenecks and inefficient employees.
  • The use of performance management software provides productive feedback. This information can help in successful career planning for employees as well as the human resources department.


  • Incorporating a performance management software can be a lengthy and complex procedure for some organizations.
  • It can be hard to communicate and train everyone in the organization to efficiently use the software.
  • Even a minute technical glitch can act as a barrier in the entire process of performance management. Additionally, it may be hard to get prompt support at that time.
  • Data is crucial for every company. Therefore, it is important to buy a highly trustworthy performance management software that would not misuse the data provided by the client/company.
  • A faulty performance management software can lead to errors in evaluating an employee’s performance.

Trends in performance management software
Trends are important in the world of business. Companies looking for performance management software should be well-versed with the latest trends to ensure they stay ahead in their game. Below are seven performance management trends that every company and software maker should know about.

  • Employee wellbeing is slowly becoming just as important as employee performance.
  • Feedback is useful as long as it is supported by regular mentoring, coaching, and conversations.
  • Meaningful performance management with a human connection can help every organization achieve its goal.
  • The use of artificial intelligence can make performance management software more efficient.
  • Performance management will be focused on manager impact more than completion rates in the future.
  • Using performance management software for employee development is more important than using it only for appraisals.
  • Performance management software that focuses on improved communication will be more fruitful.

The take-back
Performance management is critical for the success of any organization. Therefore, every organization must put a lot of thought into choosing a software for managing the performance of their employees.

It is important for companies to learn more about the latest trends and predictions related to performance management software. Additionally, looking for features that follow these trends will help a company stay ahead of its competitors by ensuring optimal employee performance.

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