<script type="application/ld+json">{"@context":"https://schema.org","@type":"FAQPage","mainEntity":[{"@type":"Question","name":"What is performance review tool?","acceptedAnswer":{"@type":"Answer","text":"A performance review software is a tool that is specially designed to allow HR managers, team leaders and project managers to analyze one's work and offer personalized feedback on how to improve in order to get a more efficient and effective output.‍"}},{"@type":"Question","name":"How much does performance & appraisal software cost?","acceptedAnswer":{"@type":"Answer","text":"The cost of performance and appraisal software depends on many factors, including:Number of reviewsFeatures includedIntegrations‍You can use Effy AI software for free for up to five reviews or invest $540 for 30 reviews and 12-month access."}},{"@type":"Question","name":"What is the best performance appraisal platform?","acceptedAnswer":{"@type":"Answer","text":"When it comes to choosing the best performance appraisal platform, the decision is quite difficult. You should definitely lookout for the tool that fits your company's needs and expectations. We encourage you to give a try to Effy.ai. There is a free demo to guide you through the product."}},{"@type":"Question","name":"Should I use software for performance evaluations?","acceptedAnswer":{"@type":"Answer","text":"Definitely. A performance review platform such as Effy AI can make performance evaluations simpler and faster with the following features:automate notifications so you don't miss out on any important datesschedule your conversationsprovide useful evaluation templatescreate quick surveys to gather feedback from employees and their co-workersprovide visual dashboards to help analyze the data"}}]}</script>

Jan 15, 2023
21 min read

12 Best Employee Performance Review Software & Tool in 2024

In this article:

A good performance review software solution helps simplify employee performance evaluations and helps align employee goals with business goals.

Most companies aim for the highest level of effectiveness when it comes to assigning tasks to their employees. Working with a large team (including tens or even hundreds of people), keeping track of every person's performance is a time-consuming and hard-to-deal-with type of task. This is exactly when Performance Review Software (PRS) steps in.

Each tool features its advantages and drawbacks. Therefore, it is getting quite complicated to choose between many tools when it comes to managing your team. With that in mind we wrote this article to help you choose the perfect tool for your business.

TL;DR

Software
Description
Highlights
The simplest and fastest performance review software that can help you easily manage employee evaluations. It is best suited for small and medium-sized businesses or teams
AI-generated report
Ready-to-use templates
Filling reviews iin Slack
Lattice
It is complex software for enterprise businesses with advanced performance management processes willing to invest much time and money to improve implementation and automate the whole cycle
People management platform
Performance and engagement
Compensation and HRIS
15Five
Designed for businesses to actively connect with their remote working teams to maximize employee engagement and boost retention. It helps you connect and drive growth for employees
Real-time feedback
Weekly check-ins
Performance reviews

How does employee performance review tool work?

Performance review tools include certain features that allow Human Resources (HR) managers, as well as non-HR managers, to send customized real-time feedback on specific issues as well as regular performance reviews. Thanks to timely reminders included in particular applications, no manager will fall behind the schedule when it comes to providing its teammates with precious feedback.

Why is it important to have a system in place for reviewing employees' progress?

Using a performance review software tool that allows you as a manager to review their progress is very important because of the basic human need for validation. People need to know their work is assessed, their achievements are recognized and their weaknesses are effectively identified (while also providing methods to overcome the previously identified issues).

The importance of having an unbiased process when conducting reviews

Feedback involves having an objective perspective on how one performs. Analyzing your employee performance must not be in any way associated with your personal interaction with your team. There are many coaching techniques specifically designed for managers working with HR teams when it comes to having an impartial approach to your organization's workforce.

Performance review template

Best 12 employee review software

How we compare tools

Our experts continuously assess the market and try out all the performance review platforms that are offered to the wide public. Thanks to the strong link between software analysts and specialists working in certain domains (including talent management and acquisition), we are always able to come up with an impartial analysis of the tools used in the performance appraisal process.

The parameters we analyze:

We come up with the most relevant aspects that should be considered when comparing two performance appraisal tools. Our reviews focus on four factors, as follows:

  • Functionality—Using a software application that allows you to do all kinds of management activities significantly reduces the time you spend on learning how to use a large number of tools properly.  
  • Ease of use—Let's face it: not everyone is a tech guru; therefore, you need an easy-to-use software tool that does not require months of training before being able to operate it properly.
  • Value for moneyYou get what you pay for. Finding the right software for your team undoubtedly includes analyzing the value for money offered.
  • Main purpose—Each tool is specially created for a particular purpose (resolving a problem, timely identifying issues, tracking progress, etc.). It is crucial to correctly identify the primary purpose of the tools and compare them with what exactly you want the software to do.

We tested all the listed applications ourselves and also sourced the data from more than 30 different websites. Our goal was to identify the most unbiased assessments, do some fact checking and compile the general review based on the above.

Here are some of the examples of relevant websites:

All promotional opinions mentioned in the sources are ignored so you can get an objective review. Now, let’s go to the reviews!

1. Effy AI – AI-Driven Performance Management Software

performance review software effy_ai

Functionality: 5/5

Ease of use: 4.5/5

Value for money: 5/5

Main Purpose: Track, analyze and continuously improve your employees’ performance inside continuously growing teams that require a high level of flexibility.

Summary:

Effy is the simplest and fastest performance review software that can help you easily manage personnel evaluation and build a high-performance culture in your workplace. It is best suited for small and medium-sized businesses or companies that run a performance review once or twice a year.

To simplify the process of conducting employee evaluations, the Effy includes the following features:

  • Templates library. Consists of questionnaires for any performance review types; it is also customizable;
  • Automated regular reminders. Helps to reach the highest response rate;
  • Anonymization. Access level management;
  • Slack integration. Possibility to fill in reviews directly within Slack;
  • AI-generated review summary. Including main strengths, areas to improve, and an action plan;

Effy allows to cover a lot of use cases, there are some of them:

  • 360-degree feedback. Collect multi-source feedback to understand strength and weaknesses of your staff
  • New employee probation period. It allows the company to assess whether the new employee is a good fit for the organization's culture and values and also aligns with expectations
  • Promotion or role change. Promotion reviews acknowledge and reward employees for their hard work, dedication, and contributions to the company
  • Formal performance review. Many companies conduct an initial performance review after an employee completes their probationary period, typically 3 to 6 months
  • Major project milestones. It allows project stakeholders to assess how well the project is progressing and help identify any deviations from the initial plan to enable timely adjustments to keep the project on track.

Automated 360 reviews at your fingertips

Thanks to the new and enhanced features, our software automates some of the most time-consuming performance management activities an HR manager must constantly do. Cyclic performance reviews are one of the most important aspects that should be taken into account when it comes to tracking and improving your employees' progress.

You can also conduct surveys that allow you to get a better understanding of how your employees see the team's performance. Getting real-time feedback from your employees is just as important as offering progress reviews and performance improvement plans.

Useful integrations within the performance review process

Effy also includes two crucial integrations for enhanced HR processes: Microsoft Teams and Slack. Both tools can be successfully linked to your team's workflow letting you keep track of the tasks assigned to each person.

Affordable pricing for high-quality employee performance analysis

When it comes to choosing the best HR software for your company, you surely do not want to pay an arm and a leg to get a performance appraisal tool. Effy allows you to choose between three packages, according to the size and needs of your business.

  • Free for Teams: Perfect for small teams, this plan is absolutely free and allows to conduct 10 reviews every 3 months.
  • Startup Plan: For growing companies with up to 50 employees, Startup plan starts at just $75 per month and offers 30 reviews per quarter.
  • Company Plan: Ideal for businesses with 100 to 200 employees, Company plan begins at $300 per month and includes 100 reviews every 3 months.
  • Enterprise Plan: Tailored to larger corporations and those with unique needs, our custom Enterprise packages come with personalized integrations and an extended scope of reviews.


In order to get a better understanding of the exact price for each subscription plan, we invite you to take a quick look at the Pricing section on the official website. Feel free to sign up for free or if you are not sure book a demo to find out how Effy can solve your HR challenges.

2. Lattice

Top Performance Review Software Lattice

Functionality: 4/5

Ease of use: 4/5

Value for money: 4/5

Main Purpose: Medium and Enterprise level of businesses with a need to manage HR teams.

Summary:

Lattice helps medium and enterprise businesses who manage HR teams to build a high-performance culture by aligning performance management, employee engagement, and skill development. 

It is a software ideal for organizations with advanced performance management processes willing to invest much time and money to improve implementation and automate the whole cycle, from managing goals and conducting reviews to calculating compensations.

With Lattice, you can connect with your employees, listen, and respond to their feedback via engagement features like: 

  • Automated onboarding surveys 
  • eNPS
  • Pulse 

Lattice also helps you to improve employee success by building a system of continuous feedback through performance reviews, 1:1s, updates, and more.

3. 15Five

Top Performance Review Software 15Five

Functionality: 4/5

Ease of use: 5/5

Value for money: 5/5

Main Purpose: Remote working teams of any size

Summary

15Five is designed for businesses to actively connect with their remote working teams to maximize employee engagement and boost retention. 

No matter where your team members are in the world, 15Five can help you connect and drive growth for employees through:

  • Real-time feedback 
  • Weekly check-ins 
  • 1-on-1s agenda 
  • Performance reviews 

With OKRs and goal-setting tools, team leaders can use 15Five to measure essential business objectives and connect their team's goals to business outcomes.

Make the most of Performance Review with AI
Get started, it's free

4.Hibob

Top Performance Review Software Hibob

Functionality: 5/5

Ease of use: 4/5

Value for money: 4/5

Main Purpose: Complex HR processes serving all the purposes in this particular department

Summary:

HiBob is a Human Resources Information Systems (HRIS) specifically designed for growing companies that get new members who constantly need performance reviews. Say your company needs someone who is able to handle multiple tasks during the same week. Only by using a high-quality HRIS, you will be able to track their work and get back to them with relevant feedback.

This performance management software automates plenty of time-consuming tasks thanks to the minimalistic approach. Using the mobile app you can enjoy an overly simplified approval cycle for new tasks and files. Employee A sends a file, Employee B approves it. It is that simple. What is more, HiBob allows its users to enjoy plenty of available integrations. Some of the most commonly used tools that can be successfully linked with your performance management software are:

  • 5 applicant tracking system (A.T.S.)—keep track of the talent acquisition process
  • Microsoft Teams and Azure—connect your team altogether
  • Slack—task assignation


In terms of pricing—the basic package starts from $5 per user, per month billed annually with the increase depending on the number of employees and features you choose.

5. Leapsome

Top Performance Review Software Leapsome

Functionality: 5/5

Ease of use: 4/5

Value for money: 4/5

Main Purpose: Startups and forward-thinking companies who develop rapidly.

Summary:

Leapsome allows its users to track and analyze the entire performance process taking place in their company. Thanks to the improved API, generating progress and performance reports could never be easier. All review cycles are now on track because of the Schedule Reviews function added during the latest update.

When it was originally launched, Leapsome was a tool specially designed for startups and forward-thinking companies. During the past years, it has been updated multiple times. At the moment, in matters of employee performance tracking, employee engagement analysis and 360-degree feedback, Leapsome is definitely an option to consider.

Leapsome has four distinct subscription plans available at the moment. Each one comes with different features as well as different prices, starting from the $6 per user, per month billed annually. However, if you want to learn more about the pricing of each membership plan you will have to request a personalized quote.

The company offers a free 14-day trial.

6. Reflektive

Top Performance Review Software Reflektive

Functionality: 5/5

Ease of use: 4/5

Value for money: 5/5

Main Purpose: Teams who need a comprehensive three-way feedback system.

Summary:

Reflektive is a company that went through numerous changes during the past years, especially if we think about the fact that it has been bought by one of its greatest competitors.

Despite the fact that the features it includes are somehow the basic ones (goal setting, progress tracking and so on), the user interface and the ease of use are two things Reflektive excels at. You can set transparent organizational goals (using the Goal Setting feature) and offer a clear view of the progress towards your employee goals. This usually results in a higher employee engagement level and an increased work satisfaction.

The review process included in this tool lets you share 360-degree feedback, besides the basic kinds of feedback messages you can send to assess your employee performance.

When it comes to writing performance reviews, you get to choose between three options, as follows:

  • Write performance reviews within your team (each member evaluates the others);
  • Create user reviews about another person in your organization (employee performance evaluations);
  • Share a review about your own performance (employee performance analysis).

Talking about pricing—Reflektive starts at $7500 per month for the enterprise pack.

7. Trakstar

Best Performance Review Software Trakstar

Functionality: 4/5

Ease of use: 4/5

Value for money: 4/5

Main Purpose: Complex HR processes, including organizational goals and workforce management

Summary:

Trakstar is a cloud-based performance management software with an integrated employee review process. You can now send personalized 360-degree feedback to each one of your employees, resulting in a higher level of employee engagement inside your team. What is more, the Goal Management feature allows HR professionals to clearly state the goals of the organization and track the progress towards that specific objective.

One interesting function that is not available in any performance management tool is called Cascade Goals. This feature lets the team leaders create goals with specific activities assigned to particular employees. Therefore, the integrated performance management system lets your colleagues and subordinates track your team's progress towards a specific goal. This is especially useful when it comes to rapidly growing companies that have just been launched and deal with a tremendous number of changes.

In matters of pricing, the company does not mention anything on the website regarding how much each subscription plan costs. The data we found on G2 states the minimum package is $4370 billed annually. Still, you can request a demo and then ask for a custom quote, based on what exactly your company needs from this performance management tool.

8. Workday

Best Performance Review Software Workday

Functionality: 4/5

Ease of use: 4/5

Value for money: 5/5

Main Purpose: Cloud-platform meant for Enterprise-level companies listed in the international market.

Summary:

Workday is designed for bigger companies with multiple employees working remotely. It allows HR managers to come up with efficiency improvement strategies and all kinds of performance appraisals.

One of the most important advantages of Workday compared to other related software categories is the security factor. All the data is stored on internal servers that are maintained safely using complex architectural and organizational technologies. The multifactor authentication makes sure that only the authorized employees are able to issue and view performance appraisals. What is more, this HR software complies with international GDPR. policies.

Being one of the most complex software solutions all around HR software, Workday also includes plenty of educational materials. Therefore, even if your employees lack some technical skills, you will be able to offer them interesting materials to study and learn from before actually using this performance tracking tool.

Workday also includes some other features. Some of the most frequently used features include the Financial Management tool, Human Capital Management as well as Payroll and Workforce Management. Another important feature Workday offers is called Succession Planning. It allows managers to schedule each day according to organizational needs.

Workday pricing is between $100.00 and $200.00 per user per year for a minimum three-year contract.

9. Sage HR

Best Performance Review Software Sage HR

Functionality: 4/5

Ease of use: 5/5

Value for money: 5/5

Main Purpose: All-in-one management tool for all kinds of companies (small, medium and enterprise)

Summary:

Sage HR (formerly known as Cake HR) is a one-in-all performance management and talent management tool. It allows HR leaders to easily keep track of their employees and maintain an effective workflow with clear and responsive tasks. One of its main advantages compared to other talent management tools is related to the enhanced ease of use.

Its intuitive and user-friendly interface allows even the least tech-savvy HR managers to rapidly add, edit and delete employees from the cloud-based database. The Goal Setting feature is also quite simple, as it lets you add clear tasks for your employees to comply with.

In terms of pricing—the product starts with $5.5 per user, per month billed annually for the most basic package, including only the core HR + Leave management features and grows up to the $216 per user, per month billed annually for the all-in-one tool. They have quite a convenient calculator on their pricing page—so it won’t take you much time to identify the exact price for your business.

10. Synergita

Best Performance Review Software Synergita

Functionality: 4.5/5

Ease of use: 4/5

Value for money: 5/5

Main Purpose: Remotely working teams which can not meet up regularly in a physical place.

Summary:

Synergita is one of the performance trackers for teams working remotely. Managers can keep track of, compare and analyze the efficiency of each employee, regardless of their current working location.

In matters of pricing, Synergita starts with the $2 per user, per month billed annually for the Engage plan and grows up to the $8 per user, per month billed annually for the Perform Plus plan. They also have the Starter Pack for a Small Business, which is $250 per month billed annually with up to 100 employees included.

Nevertheless, please note that the 360-degree reviews are only available starting from the Synergita Perform Plus plan. The first two subscription plans only include basic features that are specifically designed for smaller teams who use a rapidly growing approach (especially startup companies in the Software as a Service field).

11. Zoho People

Best Performance Review Software Zoho People

Functionality: 5/5

Ease of use: 4/5

Value for money: 4/5

Main Purpose: Comprehensive HR management system which allows leaders to keep track of everything inside their teams

Summary:

Zoho People is the go-to HR management tool for any Human Resources manager. It allows you to comprehensively integrate all the associated processes. Thanks to the enhanced API and the intuitive interface, anyone can enjoy:

  • Payroll integration;
  • Attendance tracker;
  • Shift scheduling;
  • Employee onboarding;
  • And many other useful features.

This Human Resources Management System also includes feedback features that allow managers to offer a more transparent perspective on how employees can improve their work in order to make the team more effective. When it comes to pricing, this tool is one of the cheapest available. Starting from $1,5 per user, per month billed annually, it offers a wide range of features.

One of the most interesting things about Zoho People is that it offers a free plan for up to five employees. The good news is that it is not a free demo, but rather a freemium subscription plan. You can easily use it forever, without having to worry about changing the membership type.

12. BambooHR

Best Performance Review Software BambooHR

Functionality: 4/5

Ease of use: 4/5

Value for money: 4/5

Main Purpose: Small and medium businesses which require an all-in-one management tool to administrate the workflow.

Summary:

BambooHR is an all-in-one tool that allows Human Resources managers to come up with effective feedback for their employees. This cloud-based platform also includes an integrated performance tracking system that lets team leaders and project managers create and share improvement plans that are specially designed for a particular employee.

This tool was originally designed for small and medium businesses that had a reduced number of employees (up to 100). However, you can successfully use this software even if you work in a larger company (with hundreds of employees). Yet, there are some other options in matters of performance appraisal tools you can take advantage of if this is the only thing you are looking for.

It also includes some other features such as Compensation Management (Time tracking, Salary management, etc.), Organizational Culture (Employee satisfaction, Performance management, etc.) and Onboarding (electronic signatures, onboarding, offboarding).

When it comes to pricing — BambooHR starts from $6.19 per employee per month for the Essentials package, up to $8.25 per employee per month for the Advantage package. The price depends on the number of employees and features used. The more employees connected—the lower is the price per user.

Benefits of performance & appraisal software

Performance and appraisal software brings numerous benefits to your organization.

Let’s go over them:

1. Continuous feedback

The performance and appraisal software facilitates continuous feedback and communication. Employees receive feedback instantly and in real time. It’s always accessible to them within the dashboard.

These tools also help you establish review cycles and complete them on time. You determine the cycle for each team, and the performance and appraisal software takes care of the rest. It sends automatic reminders, so you don’t have to track down managers.All this ensures your employees grow continuously within your organization and know which areas need improvement.

2. Automatic reporting

This software makes it easy to collect data, make reports, and get actionable insights. All data is available at the click of a button, eliminating the need for manual work. 

You can analyze performance based on different criteria:

  • Team
  • Individual
  • Manager

Such insights allow you to detect team performance trends and build development initiatives.

3. Goal management

The performance and appraisal software gives you a rounded view of individual strengths and weaknesses. Why is this beneficial? It allows you to assess development and training needs better.

You can set goals for employees based on your findings. The tool allows you to follow their progress every step of the way. At the same time, employees can set their SMART goals and work towards reaching them.

Types of performance & appraisal software

Performance and appraisal software enables you to provide different types of feedback. Usually, organizations use them for:

  • 360-degree feedback – This appraisal type assesses an employee’s performance based on the views of managers, colleagues, and other staff members. It’s a comprehensive evaluation method that gives a well-rounded view of individual performance.
  • Employee self-assessment – Some tools allow employees to evaluate their own skills and performance. The manager then compares that review with their own. If there are any differences, they have discussions about it.
  • Manager performance appraisal – Companies shouldn’t only assess employees – the manager must go through the same process. Team members provide honest feedback that helps the organization understand how that manager can improve.
  • Project-based evaluation – Rather than waiting for a review cycle, employees receive feedback after each completed project. This can increase their commitment and advise them on how they can do better.

Conclusion: Top 12 Employee Performance Review Software

To put everything in a nutshell there are many performance review systems available on the market you can successfully use if you are currently looking for a way to track, analyze, compare and improve your employees' performance. Depending on what exactly you are looking for, some tools are better than others. If your team is rapidly growing, then you should definitely stick to Effy.

Effy.ai, for example, is one of the most popular software tools that are widely used for performance purposes. It includes many functions that help business owners and team leaders effectively address the evaluation issues.

What is more, it allows you as a software team leader to avoid falling behind the schedule by sending automated reminders to all the decisional factors in the performance evaluation process. For example, if you use the 360-degree feedback approach, you will be able to automatically send timely reminders to each employee in order to make sure they do not forget about the self-evaluation.

The best part is that you will not have to pay a fortune just to get the basic functions of this particular performance review software. Effy.ai is a highly-affordable software application that offers subscription packages tailored to your needs.

Suppose you are not sure whether Effy.ai is the right Performance Review Software to integrate into your workflow, make sure to ask for a free demonstration. This way you can find out how exactly the tool works and why you should care about using such a powerful and secured software application during the performance evaluation process in your company.

FAQ: Best Employee Performance Review Tools in 2024

What is performance review tool?

A performance review software is a tool that is specially designed to allow HR managers, team leaders and project managers to analyze one's work and offer personalized feedback on how to improve in order to get a more efficient and effective output.

How much does performance & appraisal software cost?

The cost of performance and appraisal software depends on many factors, including:

  • Number of reviews
  • Features included
  • Integrations

You can use Effy AI software for free for up to five reviews or invest $540 for 30 reviews and 12-month access.

What is the best performance appraisal platform?

When it comes to choosing the best performance appraisal platform, the decision is quite difficult. You should definitely lookout for the tool that fits your company's needs and expectations. We encourage you to give a try to Effy.ai. There is a free demo to guide you through the product.

Should I use software for performance evaluations?

Definitely. A performance review platform such as Effy AI can make performance evaluations simpler and faster with the following features:

  • automate notifications so you don't miss out on any important dates
  • schedule your conversations
  • provide useful evaluation templates
  • create quick surveys to gather feedback from employees and their co-workers
  • provide visual dashboards to help analyze the data
What’s Effy software?
Performance review
Easily launch review cycles in your way, track progress.
360 degree feedback
Collect feedback from peers and managers. Identify strength and improvements areas.
Templates
Choose templates that are right for you. Start review process in 15 min.
1:1s
Collaborate effectively with team meeting agenda, action items and meeting notes
Personal development plan
Develop your people by providing them an explicit plan to the next level. Track goals progression.
AI generated insights & Analytics
AI will generate an extended summary for every employee, including top strength, areas to improve and action plan.
Feb 15, 2024
6 min red
5 Best Staff Appraisal Software for Better Evaluations
Performance
Read More
Feb 10, 2024
6 min read
5 Best Performance Review Software for Small Companies
Performance
Read More
Jan 30, 2024
5 min read
5 Best Employee Development Software for 2024
Performance
Read More
Set up your first
Performance Review with Effy
Use effy for free
Use this template for free