Best Performance Management Software
Performance management software is a collection of tools that facilitate HR management by analyzing employees' performance effectively. The software assists employers in arranging training courses for underperforming employees while preparing to reward the best performers.
Performance Management Software
What Is Performance Management Software?
Performance management software is a set of tools that consistently tracks employee performance at certain intervals, measures it using a performance matrix, further analyses it, and delivers feedback.
It is a combination of technology and methods where employers measure employees’ contributions based on their performance metrics and decide whether they deserve recognition or need extra support or training.
According to verified market research, the market size of performance management software will surpass USD 3.21 billion in 2024 and reach around USD 7.47 billion by 2031, at a CAGR of 12.29% from 2024 to 2031.
11 Best Performance Management Software
Following are eleven of the best performance management software in India currently. This list provides information on the features and pricing of each software. You can find all this information in our article.
We’ve also put together a useful list of the best payroll software in India.
Pocket HRMS is a comprehensive AI-based cloud HRMS solution for all sizes of businesses from SMEs to enterprises. It has an in-depth performance management system and advanced analytics and reporting module, as well as integrated rewards and recognition options, making it India’s best performance management software.
▸Key Features:
Enhanced customizable performance management
In-depth analytics & reporting
Comprehensive rewards & recognition system
▸Pricing:
Standard Plan: ₹60 per employee per month.
Professional Plan: ₹ 90 per employee per month.
Premium Plan: Quote on demand
2. DarwinBox
DarwinBox includes multiple modules which are relevant for performance management in a company. Since it is a comprehensive suite of HRMS modules, its talent management module is highly customizable, enabling companies to tweak it to their exact specifications.
▸Key Features:
A comprehensive suite of various HRMS Modules
Highly customizable talent management module
Slightly complex for a 1-man HR department
▸Pricing:
Quote on Demand
3. HRSoft
HRSoft is another extremely capable HRMS, which provides advanced performance management features. It has a flexible performance management module, which can also be integrated with other business solutions for a streamlined experience.
▸Key Features:
Integrated performance management
Improved compensation management
In-depth rewards and recognition
▸Pricing:
Quote on demand
4. GreytHR
GreytHR’s performance management module provides various options for managing employee performance goals. Being a complete HR management software, it provides payroll management, performance tracking, rewards and recognition, and others.
▸Key Features:
Integrated performance management with payroll management
Comprehensive HR suite
▸Pricing:
Essential Plan: ₹3495/month for up to 50 employees
Growth Plan: ₹5495/month for up to 50 employees
Enterprise Plan: ₹7495/month for up to 50 employees
5. ZingHR
ZingHR is another popular performance management and HR software which provides multiple features which help track and manage employees’ performance effectively. It provides several performance management-related options such as goal-setting, feedback mechanisms, performance tracking, and more.
▸Key Features:
Simplified interface with multiple customization options
Easy reporting and analytics options
▸Pricing:
Quote on demand
6. Trakstar
Trakstar is one of the top performance management software for enterprises since it primarily focuses on tracking employees’ performance and their appraisals. The software is extremely user-friendly and highly customizable, making it ideal for all kinds of businesses.
▸Key Features:
Intuitive platform with a focus on employee performance management
Multiple customization options for precise fine-tuning
▸Pricing:
Quote on demand
7. HROne
HROne is another excellent HRMS platform which provides various modules to augment the daily activities of the HR department. Being a comprehensive suite, it also has a talent management module that enables the HR team to accurately track employee performance and gather valuable insights using in-depth analytics.
▸Key Features:
User-friendly interface
Comprehensive HRMS
In-depth analytics
▸Pricing:
Basic Plan: ₹85/user/month for 50+ team
Professional Plan: ₹115/user/month for 50+ team
Enterprise Plan: Quote on demand.
8. SAP SuccessFactors
SAP SuccessFactors is another excellent suite of complete HRMS tools that enable HR to undertake their tasks with enhanced efficiency. Its talent management module provides various functionalities such as precise goal-setting, continuous feedback, monitoring employee performance, gathering in-depth insights, and more.
▸Key Features:
Fine-tunable to meet the exact specifications of an organization
A complete HRMS for tacking all tasks
▸Pricing:
Quote on demand
9. Keka
Keka is another popular HRMS in India that provides performance management functionalities. Being a complete HRMS, it is highly customizable and offers several features such as setting employee goals, monitoring their performance, gathering data and generating patterns on their performance figures.
▸Key Features:
Comprehensive HRMS with customizable features
In-depth analytics and reporting module
▸Pricing:
Foundation Plan: ₹6,999/month for up to 100 employees
Strength Plan: ₹9,999/month for up to 100 employees
Growth Plan: ₹13,999/month for up to 100 employees
10. OracleHCM
Oracle HCM is a complete HCM solution with a highly flexible architecture, which enables it to be used by companies of all sizes. Being a complete hire-to-retire solution, it also comes with multiple features to manage employee performance such as accurate performance tracking, rewards and recognition, reports generation, and more.
▸Key Features:
Comprehensive HCM suite
Offers all performance management features
▸Pricing:
Quote on demand
11. BambooHR
BambooHR is another popular choice for companies searching for HR management systems. Its talent management module is comprehensive and includes various features such as goal-setting and tracking, review management, feedback mechanisms, and more.
▸Key Features:
Comprehensive performance management system
Complete HR management software
Intuitive user interface
▸Pricing:
Quote on demand
Features of Performance Management Software
It can be a wonder list describing the most common features of the performance management software that should be in every performance management tool. Those highlighted features are,
➔ SMART Goal Setting
Setting a goal is mandatory for completing any task. An organization has thousands of employees, so setting a goal for each of them is difficult. High-level professionals often face challenges when analyzing whether an employee meets the goal. Hence, the presence of a performance management system with goal-setting functionalities like KPIs or SMART goals makes the employees more productive and more dedicated to their jobs.
➔ 360-degree Feedback
The 360-degree feedback mechanism, a cornerstone of a performance management system, is a testament to the system’s fairness. But what exactly is this mechanism? It’s an approach that ensures employee performance reviews and feedback are conducted through a self-assessment test and others’ reviews. This includes not only managers’ feedback but also that of other employees or colleagues.
With the 360-degree mechanism, employees can get unbiased feedback on their performance, evaluate themselves, and are encouraged to strive for further progress.
➔ Improvement and Self-evaluation
For employees, having a performance management system is a bright opportunity for self-improvement and self-evaluation. This mechanism allows the employees to attend their self-assessment through the PMS or KPT techniques, where they can rate themselves and wait for the managers’ rating for the final performance report. If they evaluate themselves and find any shortcomings in their performance, they can apply for further training courses. Otherwise, the company will provide some rewards as well.
➔ Rewards and Recognition
One of the key features of the performance management system is identifying the employee’s performance and delivering proper feedback. It is further advanced to rewards and recognition. The system ensures employee appraisals occur at specific intervals, such as half-yearly, yearly, or monthly. Besides, the tracking tool helps the employee do self-performance evaluations along with the employers and helps employers choose the right candidate for rewards.
➔ Measuring and Tracking
Any performance management system measures and tracks employee daily performance. It introduces different features and functionalities like, OKRs, Balanced Scorecards, Performance Appraisal Forms, 360-degree feedback, and many more. Using those platforms, employees can evaluate their performance independently. Conversely, employers can efficiently access real-time employee performance metrics before appraisals, enhancing their effectiveness.
➔ Upskilling & Reskilling
Training and development functionalities are one key feature of the performance management system. The tool makes employees feel valued and satisfied about their future career plans. People may wonder how training and development work in performance management systems. The performance management system is designed to align with the training management system, offering employees a wide range of training courses when needed. Employees can take multiple courses using performance software and associated training management tools without seeking HR permission.
➔ Easy Collaboration
In an HRMS software solution, the employee management system is complemented by various supportive systems and tools, with the performance management system being a key component. The performance management software’s multi-level integration facilities provide a user-friendly interface and a comprehensive one-stop solution platform convenient for employers and employees. Besides, add-on automotive functionalities make the integrated system more flexible and supportive.
Benefits of Performance Management Software
In an organization, management always wants to lead the business more agilely and prepare the company to adapt to new challenges and opportunities. Aligning with the performance management system can be one of the nicest options for reforming and updating the workplace with the world’s tech trends. Here are the trending benefit options of performance management systems.
1. Boost Motivation
A performance management system empowers employees by providing a platform to track their performance using ESS, rate their work on performance metrics, and receive real-time feedback. Moreover, the system ensures that the employees receive an unbiased performance rating, putting them in control of their career growth. Overall, it builds up employee motivation for work.
Employers can be assured of an efficient process with the performance tracking platform. They no longer need to track performance manually and can confidently access on-time, ready-made employee performance metrics before appraisals. Besides, employers evaluate employee attendance by integrating the GPS attendance system with the performance tracker.
2. Enhanced Employee Retention
A workplace where the most motivated employees stay with the company for a long time. Performance management software and associated strategies assist employers in keeping employees for an extended period. Integrating a performance management system is a crucial technique for maintaining employee retention.
Using the platform, employees can track their performance and receive real-time feedback. The system plays a crucial role in recognizing and rewarding their hard work, making them feel appreciated and motivated. With the help of ESS, they can participate in the assessment process and receive the right increment, all without the need to showcase their performance manually. Thus, all this results in employee retention for a longer period.
3. Employee Engagement
The performance management system achieves transparency between employees and employers through efficient performance tracking. Employees can use the ESS portal to track their performance at specific intervals. They can also deliver self-feedback and tally it with their manager’s remarks, enhancing their recognition. This entire process improves employee engagement and leads to long-term employee retention.
4. Affluent Training Opportunities
Every employee values a workplace that invests in their growth and updates them with the latest tech trends. By aligning performance management with the training system, companies provide ample opportunities for self-development, which is crucial for employee engagement and retention. When employees can enhance their skills without financial burden, they are more likely to stay with the company, contributing to a skilled and committed team.
5. Effective Talent Nurturing
Management has to manage thousands of employees in a broad range of big companies. Often, it becomes risky for employers to choose the best employees and reward them. Performance management systems deliver detailed techniques like PMS fulfilment and time tracking, 360-degree feedback facilities, and transparency while selecting genuine reward-worthy employees.
6. Identifying Potential Risk
Similarly, identifying candidates for promotion and recognizing poor performers can be daunting for employers. A performance management system here empowers employers with effective performance trackers and feedback mechanisms. These tools provide transparent performance metrics, enabling employers to confidently decide about appraisals and skill development courses for improved future output.
Types Of Performance Management Software
Employers can implement these 5 types of performance management systems in their organizations.
➔ The Balanced Scorecard
Balanced Scorecard, a digital scorecard, provides a comprehensive view of overall employee and employer performance, program details, etc. It doesn’t measure individual performance by key performance indicators (KPI). Most organizations rely on this scorecard to measure financial, customer-related decision-making, or internal processes, enabling learning and growth perspectives. The comprehensive approach reassures employers about maintaining the organization’s overall growth & development and instils confidence in the scorecard’s effectiveness.
➔ 360-degree feedback system
One of the essential performance management system types is the 360-degree feedback mechanism. This system, also known as multi-rater feedback, provides anonymous feedback from multiple resources such as managers, peers, direct reports, and subordinates instead of focusing on managers’ feedback only.
In this feedback system, employees get the results of some assessments based on the views of other colleagues. It helps employers maintain unbiased employee feedback and aids the employees in understanding their strengths and weaknesses in their career progression.
➔ Key Performance Indicator
Key performance indicator (KPI) software, a type of performance management system, tracks the overall organization’s performance using dedicated performance tracking tools. Employers can use the trackers daily, monthly, or yearly, ensuring regular feedback generation. The KPI characteristics empower HR professionals to stay in control and make informed decisions. They can also set employee goals that align with the department’s goals and objectives.
➔ Management by Objective (MBOs)
Management by Objective is a performance management approach in which employers and employees set goals aligning with the organization’s objectives. The process involves defining clear targets, regularly monitoring progress, and providing feedback to ensure employee growth and achievement.
During the tenure, employers try to enhance motivation within the workplace, clarify employee expectations, and enrich accountabilities. The main aim of the approach is to improve organizational performance by ensuring that individual efforts contribute directly to broader business goals.
➔ Performance Review Software
Performance review software is one key type of performance management. It enables the manager to assess the employee’s performance and provide valuable feedback directly.
The software assists in measuring employee performance using key indicators and standardized metrics, including self-evaluation. However, the software is not the sole factor in a successful performance review process. Effective communication between managers and employees is crucial, especially in feedback provision. Moreover, the software is aligned with the attendance management system to evaluate the performance review on a time basis.
Performance Management System
Who Can Use This Software?
The performance management system has only one motto: streamlining employee management processes by enhancing employee performance output and company productivity. The Performance Management system in India serves differently for HR professionals, managers, and employees.
1. HR Professionals
Performance management software is a tool for HR professionals that assists them in smoothly managing overall employee work performance. It plays a key role in providing primary feedback, tracking employees’ performance, and rewarding or training employees for career development.
Besides, performance management tools can help HR centralize and store performance data, follow tech trends, maintain compliance updates, manage documentation, and generate reports that improve the overall business.
2. Managers
The performance management system provides crucial support to managers in real-time tracking, evaluating employee performance and delivering feedback.
The software sets a clear goal for the managers and provides transparent, on-time employee performance metrics throughout the year; hence, managers can effectively identify high performers and those needing additional support and act accordingly.
Moreover, the system’s alignment with tech trends and cutting-edge compliance ensures it stays ahead of the curve, leading to a better approach and enhancing decision-making during performance appraisals.
3. Employees
Performance management software is a convenient tool that assists employees in setting and tracking their personal goals and self-performance progress. With this platform, employees can easily grasp their growth statistics and make informed decisions about their career progress.
Moreover, the platform maintains transparency and provides real-time updates on both the employee and employers’ dashboard. Hence, employees are always aligned with organizational goals and don’t need to prove their efforts every time before appraisals. They can take ownership of their performance and growth.
FAQs on Performance Management Software
Integrating the right performance management software is one of many ways to maintain employee workplace performance. Here is a quick overview of how you maintain good practice in managing employee performance daily in the organization.
Define SMART objectives and set clear & achievable targets that align with the company goal.
Check employee performance and provide the right feedback frequently.
Plan for a consistent and transparent appraisal process.
Commence recognizing achievements by acknowledging and rewarding employees.
Provide relevant training opportunities to every employee while required.
Encourage employees to initiate open communication and deliver honest dialogue about performance.
Build a supportive environment where every employee feels valued and appreciated.
Yes, your company may need performance management software to develop employees’ leadership skills by providing guidance on upcoming tasks and responsibilities, receiving feedback, and providing high-end support for their future goal achievement and business objectives.
The cost of implementing the best performance management depends on the software companies you choose and the features and functionalities you require to analyze variances against the standards.
Continuous performance management is an ongoing approach to managing employee performance on a routine basis. It mainly focuses on regular checking, analysing performance, generating feedback, and real-time development rather than depending on the traditional year-end performance analysing and feedback process.
Here, the most common problems employees and employers face after integrating with the performance management system are:
Absence of proper goal and achievement
Inadequate feedback and miss-communication
Absence of adequate Training and development
Limited resources and miss-management of time
Lack of Employee engagement and retention
Added cost of integration and maintenance.
The performance management system is flexible enough to integrate with the other HRMS tools. Besides, the software can smoothly align with the software with its distinct performance management processes, organizational culture, and strategic objectives, ensuring that it effectively supports their specific needs and enhances overall performance management.
Performance management software comes with robust security features that protect sensitive employee data, including encryption, access controls, and compliance with data protection regulations such as GDPR or CCPA.
However, different performance management software has different levels of security features, depending on the software provider and the organization’s implementation practices.
