Performance review software helps employers streamline the decision-making process involved in employee hiring, promotion, compensation or termination. The software makes it easier and faster for managers and HR professionals to monitor and deliver periodic reviews, give and receive feedback, improve performance tracking and clarify training needs.
Learn more about the best performance appraisal software now.
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What are the Benefits of Using a Performance Appraisal Software?
Did you know that without analytics software, HR professionals spend an estimated average of 17 hours per week creating reports? Using performance appraisal software will give you back some of those precious hours so you can focus on more personal connections with your employees.
Here are the main benefits to consider when switching over to performance review software:
Ease of Use
The top benefit of having performance appraisal software is that it makes your life easier. Everything required for a review cycle is in 1 place. Once you add the review information such as start dates and review templates, there’s not much else an HR manager has to do except oversee the entire automated process.
HR managers no longer have to remind employees to complete their reviews. Most software has built-in reminders that will nudge employees to complete the review process.
Performance and Development Insights
Managers can easily access detailed employee information such as job history, projects worked, benefits and salary. This data can help managers direct employees to positions within the company that fit their skills set. The software can also spot employees who need additional training or more development in a particular area.
These types of insights can also help managers make compensation decisions or predict leadership potential.
Employee Empowerment
Top-quality performance appraisal software gives power back in employees’ hands when evaluating their performance and progress. The software allows individuals to see how their contributions help companies achieve larger goals, alongside details about accomplishments completed in the past.
What Factors Make a Good Performance Appraisal Software?
There are many choices on the market, but the following factors are essential when choosing the best performance appraisal software.
Factor #1: Performance Insights
Maintaining ongoing notes on performance insights is crucial for accuracy within employee appraisals but can be very time-consuming. Having a performance management software that allows managers and their employees to record performance insights between appraisal cycles can make the process far more accurate and less time-consuming.
Factor #2: Performance Improvement Plans
The best performance appraisal software will allow easy access to performance data reports giving your HR teams and company leadership the ability to make strategic decisions about employee growth.
Factor #: Analytics and Reporting
Organizations are looking for more innovative ways to bring analytics and reporting back into their process to inform career planning, hiring, and other business decisions. A good performance appraisal software will incorporate detailed reports about employee workflow, workforce planning, employee information and more.
Factor #4: Goal Setting
The best performance management software provides clear goal setting and tracking capabilities. It allows organizations to set and communicate goals for individual employees and departments.
Factor #5: Good UI/UX Design
The design of the software is a critical factor when choosing performance software. An employee or manager that finds the software design easy to navigate will be far more valuable.
The Best Performance Appraisal Software
If your organization is still doing reviews on paper or in Word or Excel, it’s time to invest in performance appraisal software.
Get started with our list of the top 6 software programs that take into account different budgets and organization sizes.
BambooHR: The Gold Standard
BambooHR is one of the best performance appraisal software on the market because it does it all. It makes it easy to collect, maintain, and analyze your employee data, improve the way you hire talent, onboard new employees, manage compensation and develop your company culture.
A user-friendly interface sets BambooHR apart from the competition. The software also contains a vast amount of intuitive features. Some of the most popular features are how easy it is for staff to approve and request paid time off on the mobile app, set goals and integrate Slack.
One drawback is that BambooHR is more expensive than competing products, and the mobile app does not include benefit data.
BambooHR is best for small and medium businesses and the people who work in them.
BambooHR offers two packages: Essentials and Advantage. The Essentials package costs $6.19 per employee, per month. The Advantage package is $8.25 per employee per month. BambooHR offers discounted prices for the Essentials and Advantage packages based on company size and offers a free trial.
Engagedly: Makes Ongoing Check-Ins Easy
Engagedly is a new performance appraisal software that redefines performance appraisals. It’s one of the best on the market because it takes minutes to set up and run a review process that employees will appreciate. Its prime focus is to break the traditional mold of annual performance reviews by motivating managers to conduct ongoing check-ins throughout the year.
Engagedly is known for excellent customer support. It offers an Email Help Desk, phone support 24/7 with a live rep and an online chat feature. Engagedly also provides a ton of features as well as a massive amount of permission controls. It’s an excellent way for team members to give recognition to one another easily.
It can be difficult to pull some of the more advanced analytics, and sometimes even the basic dashboard information is confusing. However, the customer support team should be able to walk you through any confusion immediately.
Engagedly is best for any size organization.
Engagedly is priced at $2 per user per month and increases to $6 per user, per month, depending on the features you choose.
Workday: Easy to Use
Workday is a top pick for best performance appraisal software as it brings finance, HR, planning and analytics together. Workday is an easy-to-use platform with modern design and a 24/7 support team.
One of Workday’s best features is that it provides users with clear goal-setting, talent review and analytic features that give managers and employees a clear picture of the work at hand.
The biggest drawback is that Workday has users sign a 3-year contract. That is far longer than its competitors and is a deterrent to many people.
Workday is best for organizations who are looking for a highly easy-to-use platform.
Workday does not release its pricing online, and it was challenging to find an accurate cost through our research. Contact the company directly for pricing information.
Betterworks: For the Goal-Oriented People
Betterworks is the best performance review software for helping organizations to set and measure goals. It uses “goal science” aimed at measuring what matters on your team.
The strongest feature of Betterworks is its comprehensive feedback system which lets your team see what they excel at and what areas they need to improve.
Betterworks is more expensive than other performance appraisal software on the market, but you will get access to a robust amount of features.
Betterworks is best for goal-oriented organizations.
Betterworks does not provide pricing information on its website, as the costs can vary significantly from business to business. However, Betterworks steadily ends up on the more expensive end of the spectrum.
Lattice: The Pick For Mid-Sized Companies
Lattice is new to the performance appraisal software scene and is the best at creating a feedback culture in your organization.
One of the best things about Lattice is that it has built-in notifications to keep employees engaged. It receives reminders to partake in feedback and reviews regularly, facilitating open communication between managers and employees.
One catch about Lattice is that it is too pricey for small companies and doesn’t have the capabilities to manage large organizations.
Lattice is best for mid-sized businesses looking for an appraisal system that promotes feedback.
The most popular plan is the Performance and Engagement Plan, billed at $12 per employee per month.
ClearCompany: Predictive Performance Data
We love ClearCompany because it helps large employers looking to create a personalized employee review process.
What sets ClearCompany apart is its predictive performance data. The software automatically understands each employee’s role and goals, allowing you to easily customize review cycles and questions to unique positions and give each employee a personalized and actionable review experience.
Our research indicates that some users report issues with the mobile app. It can be glitchy and have loading problems.
ClearCompany is best for large companies looking for practical, customizable performance review rollout.
ClearCompany has pricing for small businesses starting at $7 per employee, per month. Larger companies should contact ClearCompany for more pricing information.
Find Performance Appraisal Software Now
Every organization needs performance appraisal software to monitor and evaluate its employees. In today’s workforce, employees and managers expect modern tools to communicate workplace expectations.
Just remember that software is only worthwhile if your company uses it, so consider whether the platform you choose is one that your employees will adopt by checking out its ease of use, feature set and how intuitive it is.
