[March 2024 List] Top 9 Employee Performance Management Systems

Key Takeaways:

• Navigate the ever-growing landscape of Employee Performance Management System (EPMS) tools.
• Discover the top 9 solutions designed to streamline workflows, boost engagement, and unlock peak performance.
• Gain valuable insights on features, pricing, and functionalities to match your specific business needs.
• Equip yourself with actionable steps to select and implement the perfect EPMS for your organization.

Stats

1. Performance Management Software Market Growth:

• The global market for Employee Performance Management software is estimated to reach a staggering $5.2 billion by 2027, according to a 2023 report by Grand View Research [1]. This significant growth highlights the increasing adoption of these solutions by organizations worldwide.

2. Continuous Performance Management:

• Companies that have embraced continuous performance feedback significantly outperform competitors, with a 24% higher rate** according to a 2022 study by Passive Secrets [2]. This statistic underscores the value proposition of EPMS in driving performance improvement through ongoing feedback mechanisms.
• Additionally, organizations with continuous performance feedback reported 50% greater satisfaction compared to those relying on annual review systems (Passive Secrets, 2022) [2]. This suggests a growing preference for real-time feedback and development over traditional methods.

3. Employee Engagement and EPMS:

• Only 14% of employees claim to be motivated by traditional performance reviews (Passive Secrets, 2022) [2]. This highlights a potential disconnect between traditional methods and employee expectations.
• Interestingly, almost all (97%) of Gen Z employees are open to receiving feedback, with 63% wanting it promptly and constructively throughout the year (Passive Secrets, 2022) [2]. This points towards a growing need for EPMS solutions that facilitate frequent and effective feedback channels, potentially leading to higher employee engagement.

Top 9 Employee Performance Management System Tools and Software to Supercharge Your Workforce

In today’s dynamic business environment, where employee engagement and performance are paramount, traditional performance management methods are falling short. Outdated annual reviews, paper-based trails, and subjective evaluations simply don’t cut it anymore.

This is where Employee Performance Management System (EPMS) tools come in. These innovative software solutions empower organizations to create a data-driven, transparent, and continuous approach to employee evaluation. By automating workflows, facilitating ongoing feedback, and fostering goal alignment, EPMS can revolutionize the way you manage and develop your workforce.

But with a plethora of options available, choosing the right EPMS can feel like navigating a complex maze. This comprehensive guide unveils the top 9 EPMS tools and software solutions, equipping you with the knowledge to make an informed decision.

Unveiling the Top 9 Employee Performance Management Systems:

1. BambooHR:

BambooHR is a user-friendly and comprehensive HR platform that includes a robust performance management module. This all-in-one solution simplifies performance reviews, goal setting, and feedback processes for businesses of all sizes. Key features include:

• Performance review templates: Streamline the review process with customizable templates tailored to different roles and departments.
• 360-degree feedback: Gain a holistic view of employee performance by gathering feedback from peers, managers, and even clients.
• Goal setting and tracking: Set SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound) for employees and track progress throughout the year.
• Real-time feedback: Facilitate ongoing conversations through performance journals and one-on-one check-in features.
• Reporting and analytics: Gain valuable insights into individual and team performance through detailed reports and dashboards.

Benefits of BambooHR:

• User-friendly interface ideal for businesses of all sizes.
• Affordable pricing plans to suit varied budgets.
• Streamlines HR processes and centralizes employee data.
• Promotes a culture of continuous feedback and development.

Considerations:

BambooHR might not be the most feature-rich option for very large organizations with complex performance management needs.

2. Lattice:

Lattice is a modern performance management platform that emphasizes continuous feedback, development, and employee engagement. Its user-friendly interface and intuitive design make it a popular choice for forward-thinking organizations. Key features include:

• Continuous performance conversations: Encourage regular check-ins between managers and employees to foster open communication.
• Peer recognition and feedback: Empower employees to recognize and celebrate each other’s contributions.
• Skills management: Identify skill gaps and track employee development progress.
• 15Five performance check-ins: Utilize a science-backed methodology for conducting regular performance conversations.
• Performance analytics: Gain actionable insights to drive data-driven performance decisions.

Benefits of Lattice:

• Strong focus on continuous feedback and employee development.
• Intuitive and user-friendly interface for seamless adoption.
• Encourages a culture of recognition and appreciation.
• Integrates with popular HRIS and payroll systems.

Considerations:

Pricing plans can be higher compared to some competitors.

3. ClearCompany:

ClearCompany offers a comprehensive performance management suite designed to streamline the entire employee lifecycle, from onboarding to performance reviews. This cloud-based solution caters to the needs of growing businesses and provides features like:

• Performance reviews: Conduct structured and efficient performance reviews with customizable templates and rubrics.
• Goal management: Set clear and measurable goals for employees and track progress visually through progress bars and dashboards.
• Development plans: Create personalized development plans based on performance feedback and skill gaps.
• Succession planning: Identify high-potential employees and prepare them for future leadership roles.
• Employee engagement surveys: Gather valuable feedback from employees to measure engagement and identify areas for improvement.

Benefits of ClearCompany:

• Scalable solution that grows with your organization.
• Integrates seamlessly with other HR and talent management systems.
• Offers a talent marketplace for internal job postings and career development opportunities.
• Provides robust reporting and analytics for data-driven decision making.

Considerations:

ClearCompany’s pricing can be on the higher end for smaller businesses.

4. Workday Performance Management:

Workday Performance Management is an integrated module within the Workday HCM (Human Capital Management) suite. This solution is ideal for large enterprises seeking a comprehensive and unified HR platform. Key functionalities include:

• Continuous performance feedback: Facilitate ongoing conversations and provide feedback in real-time.
• Goal alignment: Align individual goals with team and organizational objectives for a focused workforce.
• Skills development: Identify skill gaps and recommend relevant training and development opportunities.
• Compensation management: Link performance data to compensation decisions for a fair and transparent reward system.
• Succession planning: Develop future leaders through targeted coaching and career development programs.

Benefits of Workday Performance Management:

• Seamless integration with other Workday HCM modules for a unified HR experience.
• Scalable solution suitable for large and complex organizations.
• Advanced features for compensation management and succession planning.
• Provides robust security and data privacy measures.

Considerations:

Workday HCM is a significant investment and may not be cost-effective for smaller businesses. Implementation can be complex and require dedicated resources.

5. Gusto Performance Management:

Gusto Performance Management is a user-friendly and affordable solution specifically designed for small and medium-sized businesses (SMBs). This cloud-based platform simplifies performance reviews and empowers managers to provide ongoing feedback. Key features include:

• Simple and intuitive review process: Streamlined review templates to save time and resources.
• Performance feedback tools: Provide and receive feedback through various channels, including one-on-one meetings and anonymous surveys.
• Goal setting and tracking: Set goals for employees and track progress with clear visuals and reminders.
• Performance history: Maintain a record of past reviews and track employee development over time.
• Employee self-service: Empower employees to access their performance reviews and development plans.

Benefits of Gusto Performance Management:

• Affordable pricing plans specifically tailored for SMBs.
• Easy-to-use interface with minimal learning curve.
• Promotes a culture of continuous feedback and development.
• Integrates seamlessly with Gusto’s payroll and HR features.

Considerations:

Gusto Performance Management might lack some advanced features compared to more comprehensive EPMS solutions.

6. PeopleBox:

PeopleBox offers a comprehensive performance management platform designed to improve employee engagement and performance. This cloud-based solution caters to businesses of all sizes and provides features like:

• Performance reviews: Conduct structured and customizable reviews with rubrics and competency frameworks.
• 360-degree feedback: Gain a holistic view of employee performance by gathering feedback from various stakeholders.
• Goal setting and tracking: Set SMART goals for employees and track progress visually through dashboards and reports.
• Performance calibration: Ensure consistency in performance evaluations across managers.
• Employee engagement surveys: Measure employee sentiment and identify areas for improvement.

Benefits of PeopleBox:

• Scalable solution that adapts to the needs of growing businesses.
• User-friendly interface with mobile app accessibility for on-the-go performance management.
• Strong focus on employee engagement and development.
• Integrates with popular HRIS and payroll systems.

Considerations:

Some users might find the interface slightly complex compared to other options.

7. HiPeople:

HiPeople is a performance management platform with a strong focus on employee development and continuous feedback. This cloud-based solution utilizes gamification elements to keep employees engaged in the performance management process. Key features include:

• Performance check-ins: Facilitate frequent and informal check-ins between managers and employees.
• Peer recognition and feedback: Encourage a culture of appreciation by allowing employees to recognize each other’s contributions.
• Skills development: Identify skill gaps and recommend relevant training and development opportunities.
• Goal alignment: Align individual goals with team and organizational objectives for a focused workforce.
• Performance analytics: Gain actionable insights to track progress and make data-driven decisions.

Benefits of HiPeople:

• Promotes a culture of continuous feedback and development.
• Utilizes gamification elements to boost employee engagement.
• Offers a mobile app for convenient access to performance data.
• Integrates with popular productivity and communication tools.

Considerations:

HiPeople might be a better fit for smaller businesses and startups with a younger workforce.

8. PerformYard:

PerformYard is a user-friendly performance management platform designed to streamline performance reviews and boost employee engagement. This cloud-based solution offers features like:

• Performance reviews: Conduct performance reviews with customizable templates and scoring rubrics.
• Goal setting and tracking: Set SMART goals for employees and track progress visually through progress bars and dashboards.
• Continuous feedback: Facilitate ongoing communication through performance journals and check-in features.
• Employee self-service: Empower employees to access their performance reviews and development plans.
• Reporting and analytics: Gain valuable insights into individual and team performance through detailed reports.

Benefits of PerformYard:

• Easy-to-use interface with a focus on user experience.
• Affordable pricing plans suitable for businesses of all sizes.
• Encourages a culture of self-reflection and accountability.
• Offers robust reporting and analytics for data-driven decision making.

Considerations:

PerformYard may not be ideal for very large organizations with complex performance management requirements.

9. Kenexa Performance Management:

Kenexa Performance Management is a comprehensive solution from the talent management leader, Kenexa. This cloud-based platform offers a wide range of features designed to streamline the entire performance management process. Key features include:

• Performance reviews: Conduct structured and customizable reviews with competency-based frameworks.
• Goal alignment: Align individual goals with team and organizational objectives for a focused workforce.
• Succession planning: Identify high-potential employees and develop them for future leadership roles.
• Skills development: Identify skill gaps and recommend relevant training and development opportunities.
• Compensation management: Link performance data to compensation decisions for a fair and transparent reward system.

Benefits of Kenexa Performance Management:

• Comprehensive solution suitable for large and complex organizations.
• Integrates seamlessly with other Kenexa talent management solutions.
• Advanced features for talent acquisition, onboarding, and learning management.
• Offers robust security and data privacy measures.

Considerations:

Kenexa Performance Management can be a significant investment and might not be cost-effective for smaller businesses. The platform can have a steeper learning curve compared to some competitors.

By carefully considering your organization’s specific needs, budget, and company culture, you can select the Employee Performance Management System (EPMS) that empowers you to unlock peak performance within your workforce.

Frequently Asked Questions (FAQs) About Employee Performance Management Systems (EPMS)

Now that you’ve explored the top 9 EPMS tools and software solutions, let’s delve deeper into some of the most common questions organizations have about implementing and utilizing these systems.

1. What are the key benefits of using an Employee Performance Management System (EPMS)?

EPMS offers a multitude of benefits, including:

• Streamlined workflows: Automating administrative tasks associated with performance reviews saves time and resources.
• Improved accuracy and consistency: Standardized templates and rubrics ensure consistency in evaluations.
• Continuous feedback: EPMS facilitates ongoing communication and feedback loops, fostering development.
• Enhanced employee engagement: Employees feel valued and motivated when they receive regular feedback and recognition.
• Data-driven decision making: Gain valuable insights into performance trends to make informed decisions about talent development and compensation.

2. How much does an EPMS typically cost?

Pricing for EPMS varies depending on the features offered, the number of users, and the vendor. Some solutions offer per-user, per-month pricing, while others have a one-time licensing fee. Many vendors provide free trials or demos, allowing you to test-drive the system before committing.

3. What are some of the biggest challenges associated with implementing an EPMS?

• Resistance to change: Employees and managers accustomed to traditional methods might resist the shift to a new system.
• Data migration: Transferring existing performance data to the new EPMS can be time-consuming.
• Training and user adoption: Ensuring employees and managers are comfortable using the new system is crucial for success.
• Data security and privacy: Maintaining data security and complying with relevant data privacy regulations is essential.

4. How can we encourage user adoption of a new EPMS?

• Effective communication: Clearly communicate the benefits of the new system and how it will improve the performance management process.
• Comprehensive training: Provide comprehensive training on how to use the system’s features and functionalities.
• Managerial leadership: Managers play a crucial role in driving user adoption by actively using the system and providing feedback.
• Ongoing support: Offer ongoing support to address user questions and concerns.

5. How often should we conduct performance reviews using an EPMS?

Many organizations are moving away from the traditional annual review model and embracing a more continuous feedback approach. EPMS can facilitate this shift by allowing for ongoing check-ins, real-time feedback, and goal progress tracking. The frequency of formal reviews can be determined based on your organizational needs and culture, but consider quarterly or bi-annual reviews alongside continuous feedback mechanisms.

6. Can EPMS be used for performance improvement plans (PIPs)?

Absolutely. EPMS can be a valuable tool for managing performance improvement plans (PIPs). The system can be used to document performance concerns, track progress towards improvement goals, and provide ongoing feedback to the employee.

7. How can we ensure that performance reviews conducted through an EPMS are fair and unbiased?

• Establish clear guidelines and expectations for goal setting, feedback, and performance evaluations.
• Train managers on how to identify and avoid bias in their evaluations.
• Consider using a combination of self-assessment, peer feedback, and manager feedback to get a well-rounded view of employee performance.

8. Does EPMS integrate with other HR systems?

Many EPMS integrate with other HR systems, such as payroll, applicant tracking systems (ATS), and learning management systems (LMS). This integration can streamline HR processes and provide a more holistic view of employee data.

9. What happens if an employee disagrees with their performance review conducted through an EPMS?

An EPMS should have a clear process for addressing employee concerns about their performance reviews. This might involve allowing employees to submit comments or rebuttal statements within the system itself. Organizations should also have a defined escalation process for unresolved disputes.

10. Can EPMS be used to track employee absences and tardiness?

While some EPMS offer features for tracking attendance, this functionality might be better suited for a dedicated time and attendance system. However, integrating your EPMS with your attendance system can provide a more holistic view of employee performance.

11. Is it okay to use an EPMS for disciplinary actions?

EPMS can be used to document performance concerns and track progress on improvement plans. However, it’s important to follow established organizational policies and procedures for disciplinary actions. This may involve consulting with HR or legal counsel before taking any disciplinary steps. Here’s a breakdown of the key points to consider:

• Documentation: An EPMS provides a valuable record of performance concerns. You can document specific incidents, behaviors, and dates within the system. This documented history can be crucial if progressive discipline is necessary.
• Performance Improvement Plans (PIPs): Many EPMS offer functionalities to manage PIPs. You can outline clear goals, timelines, and expectations for improvement within the system, and track the employee’s progress towards achieving those goals.
• Evidence and Consistency: When considering disciplinary action, ensure you have documented evidence of performance concerns within the EPMS, along with any communication or feedback provided to the employee. Following a consistent performance management process throughout the year strengthens your case.
• Legal Compliance: Consult with HR or legal counsel to ensure any disciplinary actions follow established policies and comply with relevant employment laws. This is especially important for potential termination or other severe consequences.
• Focus on Improvement: While the EPMS can be used for documentation, remember that the ultimate goal is to improve employee performance. Use the system to facilitate clear communication, provide ongoing feedback, and offer support during the improvement process.

12. How can we ensure that managers are providing consistent feedback across the organization?

Standardize the performance management process by establishing clear guidelines and rubrics for goal setting, feedback delivery, and performance evaluation. Provide training for managers on how to use the EPMS effectively and conduct regular calibration sessions to ensure consistency in assessments.

13. What are some best practices for writing effective performance reviews using an Online Performance Management System?

• Focus on specific examples and behaviors to support your evaluation.
• Provide a balance of both strengths and areas for development.
• Set clear and actionable goals for the future performance period.
• Offer specific suggestions for development and growth opportunities.
• Proofread your review carefully before submitting it to the employee.

14. How can we hold managers accountable for using the Online Performance Management System effectively?

Track usage data to identify managers who are not actively using the system. Hold managers accountable for setting goals, providing feedback, and conducting performance reviews for their direct reports. Consider incorporating EPMS utilization into performance evaluations for managers.

15. What are some of the legal considerations when using an Online Performance Management System?

Ensure your EPMS complies with all relevant data privacy regulations, such as GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act). Maintain accurate and up-to-date employee records within the system. Develop clear policies and procedures for accessing, managing, and storing employee data.

16. How can we measure the success of our Online Performance Management System?

Track key metrics such as employee engagement, performance improvement, and time spent on administrative tasks. Conduct surveys to gather feedback from employees and managers on their experience with the system. Regularly review and analyze data to identify areas for improvement and demonstrate the value proposition of the EPMS to leadership.

17. What are some inspirational quotes about performance management from HR industry leaders?

• “The goal is not to punish people, but to help them improve.” – Susan M. Heathfield, SHRM – Society for Human Resource Management
• “Performance management is about development, not just evaluation.” – Bob Sutton, Stanford University Professor
• “Feedback is the breakfast of champions.” – Ken Blanchard, Management Author

18. Where can I find additional resources to learn more about Online Performance Management Systems?

There are numerous resources available online and in libraries to help you learn more about EPMS. Here are a few suggestions:

• Society for Human Resource Management (SHRM): SHRM – Society for Human Resource Management
• HR Magazine: SHRM – Society for Human Resource Management
• Brandon Hall Group: Brandon Hall Group

19. Should we completely do away with annual reviews and rely solely on continuous feedback?

While continuous feedback is crucial, completely eliminating annual reviews might not be ideal for all organizations. Annual reviews can provide a valuable opportunity to step back and take a comprehensive look at employee performance and development over a longer period. Consider using a hybrid approach that combines continuous feedback with formal annual reviews.

20. How can we ensure our EPMS fosters a culture of development, not just evaluation?

Focus on the future by setting clear and achievable goals for employee development. Provide ongoing feedback that is specific, actionable, and positive. Encourage open communication and two-way dialogue between managers and employees. Recognize and reward employees for their achievements and contributions.