The 9 best employee performance management software for HR

Keeping up with employee performance is essential for any organization that wants to thrive and grow. Performance management software can be a game-changer for busy HR teams, helping them efficiently manage employee development, solicit and send feedback, set clear objectives, review progress, and more — all in one place, and with just a few clicks instead of sifting through piles of paperwork and spreadsheets.

Performance management software helps keep teams on the same page about their goals, make feedback loops continuous, and help employees feel more connected to their personal and professional development — boosting loyalty and retention along the way.

In this article, we’ll explore nine of the best performance management software solutions, including their key features, pros and cons, and why (or why not) each one might be the right fit for your organization. Whether you're a small startup or a large enterprise, the right performance management system can revolutionize how you manage and develop your team.

What is performance management software?

A performance management system is a software tool that helps organizations manage employee performance by integrating functions like goal-setting, feedback, performance reviews, and development planning.

A performance management system empowers HR teams to set clear objectives for employees, track their progress, and provide them with timely feedback. Common features included in performance management software include performance appraisals, 360-degree feedback, and analytics to help identify performance trends. Managers and employees alike should be able to use the system to see and set goals, track their progress, and adjust plans as needed to meet organizational objectives.

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Quick comparison: Best performance management software at a glance

Making sense of performance management options can feel overwhelming when every vendor promises to revolutionize your review process. Here's a clear breakdown of what each platform actually delivers, who they serve best, and starting costs you can expect.

Methodology: How we chose the best performance management software

We evaluated dozens of performance management platforms through comprehensive research, analyzing product capabilities on vendor websites, combing through hundreds of verified reviews on G2 and Capterra, and testing available demos to understand real-world functionality.

Our evaluation criteria

• Core functionality depth: We assessed whether platforms offer just basic review templates or features like sophisticated goal cascading, 360-degree feedback, and compensation planning.

• Integration capabilities: We prioritized platforms that connect with HRIS, payroll, and productivity tools. We prioritized tools with extensive pre-built integrations, but we also considered available API access for custom integration options. 

• User experience: Complex features mean nothing if managers won't use them. We evaluated interface design, mobile capabilities, and adoption rates from customer reviews.

• Analytics sophistication: Basic reporting isn't enough. We looked for platforms providing actionable insights, predictive analytics, and trend identification.

• Implementation reality: We analyzed actual deployment timelines from customer reviews versus vendor promises, focusing on time-to-value.

Rippling editorial policy: Rippling puts our customers (and prospective customers!) first. The Rippling team is committed to providing information supported by product data, insights, and customer feedback to inform our content.

9 best employee performance management software & systems

Here's what each platform actually delivers for corporate performance management based on extensive evaluation and real customer feedback.

1. Rippling

Rippling combines extensive performance management features with unified HR, payroll, and IT management in a single all-in-one platform, eliminating the need for separate performance tracking tools.

Why it stands out: Unlike standalone performance tools, Rippling's performance management runs on the same data model as payroll and HRIS.

Promote someone based on their stellar review? Their compensation, benefits, and access permissions update automatically. The platform offers sophisticated features like calibration sessions, 360-degree feedback, and automated review cycles without requiring separate integrations.

Where it can fall short: The extensive functionality beyond performance management might overwhelm organizations only seeking basic review capabilities.

It's right for you if: You want performance management that actually connects to compensation decisions, need to eliminate manual data updates between systems, or plan to scale your performance processes.

Feature snapshot:

2. Lattice

Lattice is a dedicated performance management platform focusing on continuous performance management and employee engagement.

Why it stands out: Purpose-built for performance and engagement, Lattice offers sophisticated OKR tracking, pulse surveys, compensation strategy functionality, and performance review cycles. The platform excels at connecting performance to career development with growth plans and competency frameworks.

Where it can fall short: As a standalone platform, it requires integration with HRIS and payroll systems. Some users report the analytics could be more customizable. Reporting capabilities are also basic, which may prevent you from getting the data you need quickly, and permissions are manual, which can create busywork. 

It's right for you if: You want best-in-class performance features, already have HRIS/payroll sorted, and prioritize continuous feedback culture.

Feature snapshot:

3. BambooHR

BambooHR offers performance management as part of its user-friendly HRIS platform designed for small to mid-sized companies.

Why it stands out: The performance features maintain BambooHR's signature simplicity. Self-assessments, manager assessments, and peer feedback work seamlessly within the broader HR platform. The interface is genuinely intuitive — managers actually use it without training.

Where it can fall short: Performance features are basic compared to dedicated platforms, and require the mid-level plan. If you want compensation planning, you need the Elite plan. There’s also limited customization for complex review processes and a lack of advanced analytics or predictive insights compared to other platforms.

It's right for you if: You need straightforward, streamlined performance reviews without complexity, already use BambooHR for HR, or prioritize ease of use over advanced features.

Feature snapshot:

4. Paycor (acquired by Paychex)

Paycor includes performance management within its HCM suite, offering goal management and performance reviews alongside payroll and HR.

Why it stands out: Paycor offers a strong alignment between performance and compensation with direct payroll integration thanks to its talent management features. It has multiple features specific to different industries, like healthcare and manufacturing, and includes robust reporting capabilities. 

Where it can fall short: Most significantly, Paycor’s permanent management software isn’t actually theirs. It comes from a third-party tool, 7Geese, that they acquired. This means that it can feel disjointed when trying to automate approvals or create custom cross-module reporting, which is why some users report clunky navigation between modules. There are also customer reviews that indicate that customer support quality may vary. 

It's right for you if: You need performance management integrated with payroll, want industry-specific features, or prefer traditional enterprise software.

Feature snapshot:

5. TriNet

TriNet provides performance management as part of its PEO services, handling HR administration, including performance reviews.

Why it stands out: TriNet’s full-service approach means this platform handles a large portion of your administrative burden. Strong compliance features ensure reviews meet legal requirements, and you get access to HR consultants for performance management strategy.

Where it can fall short: TriNet has limited customization as part of a PEO model, and is much more expensive than standalone software. You may also have less control over performance processes.

It's right for you if: You use TriNet's PEO services, want outsourced HR administration, and need compliance-focused performance management.

Feature snapshot:

6. Culture Amp

Culture Amp combines employee engagement features with performance management, focusing on culture-driven performance.

Why it stands out: Culture Amp is exceptional at connecting engagement data to performance outcomes. It offers science-backed survey questions and frameworks, with beautiful analytics dashboards that actually drive action. There’s a strong focus on development rather than just evaluation.

Where it can fall short: Culture Amp is more expensive than basic alternatives, and requires true cultural buy-in to maximize value. Some user reviews also noted they want more customization in review cycles. And if you want a truly all-in-one HR platform, Culture Amp isn’t for you. 

It's right for you if: You prioritize culture and engagement, want data-driven performance insights, or need to improve manager effectiveness. It’s not right for you, however, if you want a more complete HRIS solution. 

Feature snapshot:

7. ADP Workforce Now

ADP includes performance management in its comprehensive HCM platform, leveraging decades of payroll and HR expertise.

Why it stands out: ADP Workforce Now has solid compliance and documentation features. It also has direct integration with ADP's payroll, which ensures compensation changes flow seamlessly. Finally, it has succession planning capabilities that are typically reserved for enterprise platforms.

Where it can fall short: Multiple users report a clunky, outdated interface and a steep learning curve. The platform’s innovation pace can also lag behind some competitors, and some users were frustrated with a lack of customization options. 

It's right for you if: You already use ADP for payroll, need bulletproof compliance, or prefer established vendors over startups.

Feature snapshot:

8. Gusto

Gusto offers basic performance management features within its small business-focused payroll and HR platform.

Why it stands out: Gusto has a simple, modern interface that small business owners can easily navigate without steep learning curves. They also have transparent pricing with no hidden fees. Basic performance tracking included without expensive add-ons.

Where it can fall short: The platform has very basic performance features that ultimately boil down to feedback and basic reviews. There aren’t advanced analytics or goal cascading, and more advanced talent management features require integrations (and subscriptions) with third-party tools. 

It's right for you if: You're a small business needing basic performance tracking, already use Gusto for payroll, or want something simple that works.

Feature snapshot:

9. UKG Pro

UKG Pro (formerly Ultimate Software) provides enterprise-grade performance management with AI-powered insights.

Why it stands out: The platform has sophisticated predictive analytics that identify flight risks and high-potential employees, and an AI-powered coaching recommendations for managers. There’s a strong focus on continuous performance management, rather than just annual reviews.

Where it can fall short: This platform can be expensive and complex for smaller organizations, and there may be long implementation periods as well as dependencies on professional services to configure the system for you, increasing its total cost. 

It's right for you if: You're an enterprise needing advanced analytics, want AI-powered insights, or require sophisticated succession planning.

Feature snapshot:

How to choose a performance management system: 4 features to look for

Here are four essential features to consider when choosing the best performance management software solution for your organization.

Easy goal-setting and management

A performance management system should include intuitive tools for setting and managing employee goals. 

This helps your entire organization make sure everyone understands their individual objectives and how their efforts contribute to the overall success of the company. Easy goal-setting capabilities will help your team stay aligned and give everyone visibility and transparency around their goals.

Comprehensive employee performance tracking

One of the most important aspects of a performance management system is its ability to comprehensively track employee performance. 

Look for review software that allows stakeholders in your organization to continuously monitor and document employee progress. This feature will empower your team to identify areas for improvement and recognize your high performers so they don’t go unnoticed.

Review cycles

An effective performance management system should support review cycles that you can customize and configure to best fit your organization’s needs. 

Employee performance evaluations were historically held annually, but thanks to performance management software, businesses can set cycles that allow for more regular — or even continuous — feedback and adjustments, which contributes to employees’ ongoing development and success.

Performance trends analytics

Employee performance analytics can provide valuable insights into how your organization’s individual employees and teams are performing over time.

Performance management software with this feature empowers your HR leaders and managers to identify patterns, spot potential issues earlier, and make more strategic, data-driven decisions.

By analyzing performance trends, HR leaders can become strategic partners in their organizations, helping them better understand their workforces’ strengths and areas for growth, ultimately driving business outcomes.

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Benefits of implementing performance management software

Adopting performance management software can come with many benefits — here are a few of the key upsides.

Continuous feedback

Performance management software allows many organizations to facilitate continuous feedback. 

While historically, companies scheduled performance reviews as annual or biannual events, continuous feedback allows managers and employees to engage in regular, constructive discussions, often with 360-degree feedback. Ongoing communication helps address problems promptly, recognize achievements, provide guidance, and promote personal and professional development — all of which foster a culture of continuous improvement.

Alignment of individual and organizational goals

Performance management software also helps align individual goals with the overall objectives of the organization. 

By helping employees understand how their work contributes to the bigger picture, your performance management platform helps promote a unified direction and shared sense of purpose. In turn, this alignment can drive increased productivity and help your entire organization reach its strategic and long-term goals.

Data-driven decisions

The analytics capabilities that many performance management platforms offer can provide valuable insights into employee performance trends. 

By leveraging this data, HR teams can make more informed decisions regarding hiring, promotions, training, and resource allocation. Data-driven decisions help your HR function become a more strategic part of your overall organization, contributing to business success.

Improved employee engagement and retention

With regular feedback and clear performance metrics, employees feel more valued and understood. This type of transparency and recognition can help boost employee engagement, leading to higher job satisfaction and retention rates. Engaged employees are more likely to stay with a company longer, contributing to its long-term success.

Which performance management software is best for you? 

While each of the nine tools above are all outstanding options, the right choice for you will depend on factors like your business size, growth goals, industry, and budget. 

For startups (1-50 employees): Gusto provides basic performance tracking without complexity, while Rippling offers more sophisticated features that scale as you grow without requiring platform changes.

For growing companies (50-500 employees): Rippling delivers comprehensive performance management integrated with HR and payroll. Lattice works well if you want best-in-class performance features and already have HRIS covered.

For culture-focused organizations: Culture Amp excels at connecting engagement to performance, while Rippling provides similar insights integrated with operational HR data.

For enterprises (500+ employees): UKG Pro offers advanced AI analytics for large-scale operations, though Rippling provides enterprise features without enterprise complexity.

For compliance-heavy industries: ADP Workforce Now or TriNet provide bulletproof documentation and compliance, while Rippling offers strong compliance with modern user experience.

For small businesses on a budget: Gusto or BambooHR provide affordable basics, though Rippling's delivers significantly more functionality.

Streamline employee performance management with Rippling

Here's what sets Rippling apart from traditional performance management software and disconnected point solutions:

• Performance that connects to everything: Unlike standalone tools requiring constant data syncs, Rippling's performance management runs on the same platform as payroll, benefits, and HRIS. This makes it easier for your HR professionals, management teams, and employees to take full advantage of the platform. 

• Automation that eliminates busywork: Automatically trigger review cycles based on tenure, role changes, or custom rules. Route feedback requests based on org structure. Generate compensation recommendations based on performance ratings. No more spreadsheet juggling or manual reminder emails.

• Analytics that drive real decisions: See performance trends across departments, identify flight risks before they leave, and understand the real correlation between performance ratings and business outcomes. Rippling's unified data model means performance insights connect to actual operational metrics.

• Reviews people actually complete: The interface makes sense to all team members, not just tech-savvy HR professionals. Managers can complete reviews on mobile, and employees get clear notifications and simple workflows. That means higher completion rates and more meaningful feedback. 

• Implementation in weeks, not quarters: While enterprise performance management software typically requires months of setup, Rippling gets you running performance reviews in weeks. And even better: There are no data migration headaches when performance runs on the same system as your HRIS.

Ready to transform performance management from a compliance exercise into a strategic advantage? Build high-performing teams and help your employees thrive with Rippling’s performance management software. 

FAQs about performance management software