Feb 10, 2024
6 min read

5 Best Performance Review Software for Small Companies

In this article:

Are you facing challenges with your workforce and their performance? You're not alone. One in five small business owners in the US who participated in a 2023 survey claimed that their biggest problem was the quality of labor.

The initial step to improving employee performance is knowing where you stand now by understanding the strengths and weaknesses of every employee and spotting growth opportunities.

We've selected the best performance review software for small companies that can be your ally in cultivating a high-performing team.

5 best performance review software for small companies: A detailed overview

Effy AI

Effy AI best performance review software for small companies

Effy AI may be the best performance management software for small businesses, thanks to its user-friendly interface and numerous pre-made templates. It can be used as 360-degree feedback software for collecting targeted feedback from numerous sources. Also, its free version comes with an unlimited number of reviews and users so that you can test it out.


  • Templates and questions: If you're not an HR professional, don't worry! Our system enables managers to develop tailor-made templates and questions in only a few minutes. There's no need to create anything from scratch; we guarantee you'll find something that suits you in our extensive library.
  • AI tool: You can use our AI tool to generate, analyze, and summarize employee reviews, saving you a lot of time and helping you to come up with valuable insights and patterns.
  • Employee database: Effy AI is a unique database where you can keep all important information about your employees, from manager and peer feedback to private notes. You can integrate it with Slack and run your performance reviews where you communicate to get real-time feedback without leaving the app.

Switching to Effy AI can bring many benefits to your small business, such as:

  1. Increasing employee engagement by up to 30%
  2. Decreasing the turnover rates by up to 40%
  3. Improving your team performance by up to 20%

And the best part is that we won't ask you to watch a free demo or go through a lengthy registration process. Click here and start using our free version today.

User reviews:

Effy AI customers review

G2: 4.9

Capterra: 4.9


  • Free forever: unlimited users and unlimited reviews
  • Pro: $75/space/month or $900/space/year (everything in the free plan + 30 AI-generated reports, anonymous reviews, and priority customer support)


performance review software for small companies Trakstar

Source: Capterra.com

Trakstar is a comprehensive platform that can replace many other HR solutions, as it can be used not only for managing employee performance but also for the recruitment and hiring process.

It's a professional performance management tool designed for HR teams, so as a small business owner, you might need a bit of time to figure it out and implement it.


  • Automated reminders: You can schedule performance reviews and not think about them, as you'll be notified beforehand.
  • Benchmarking: Not sure where your team's performance stands compared to other small businesses? You can use this feature to compare their performance against companies of a similar size and industry.
  • Comprehensive dashboard: Trakstar has a dashboard that simplifies data visualization, enabling you to see only your vital metrics.

User reviews:

Trakstar customers review

G2: 4.2

Capterra: 4.5


Custom price available upon request.


15Five Performance Review Software

Source: G2.com

If you're looking for something quick and simple, 15Five could be one of your best performance management tools. As the name says, its performance review forms take a maximum of 15 minutes to complete, which is reasonable even for very busy teams.

Conversely, this may not be the most detailed performance review software out there as its reviews may lack depth and comprehensive insights.

See also: Lattice vs 15Five


  • Pre-made templates: The templates are created with the fast pace of today's business world in mind, and they take a maximum of 15 minutes to complete and no more than 5 minutes to read.
  • Engagement surveys: They're the quickest way to measure employee engagement scores, as they take less than 6 minutes to complete, and their design is backed up by science.
  • Microlearning: The tool suggests microlearning and coaching sessions that are tailor-made for each employee based on their survey results.

User reviews:

G2: 4.6

Capterra: 4.7


  • Engage: $4/user/month (engagement surveys)
  • Perform: $10/user/month (360-degree feedback review)
  • Total platform: $16/user/month (Engage + Perform + HR dashboard)


BambooHR Performance Review Software

Source: Capterra.com

BambooHR is a comprehensive platform for your HR department that can be used for performance management, applicant tracking, onboarding, payroll, and other administrative tasks.

This employee management software can be a great option for those looking to streamline their processes and replace multiple platforms with one, but the cost can add up accordingly. 


  • 30-60-90 check-ins: This might be the best performance management software for new hires, as you can automate the performance management cycle and see how they adapt to your team.
  • Customization: There's a lot of room for customization when it comes to templates and reports, and there are also custom templates for different teams, such as customer support or sales.
  • Employee recognition: This tool helps you identify high-performing employees who feel undervalued and create targeted recognition programs to show appreciation to your staff.

User reviews:

BambooHR Customers Review

G2: 4.4

Capterra: 4.6


The price depends on the number of features and add-ons you want to use, but you can only get a custom quote by filling out a form on their website. 

See also: BamboHR competitors


 PerformYard performance review software

Source: Capterra.com

PerformYard is a performance management solution focused on measuring employee performance all year round and creating comprehensive profiles for each employee.

On the con side, this employee feedback software could be more intuitive and user-friendly.


  • Continuous feedback: PerformYard goes beyond annual reviews and allows you to track employee progress all year round by keeping notes and recognizing all their milestones, not only reaching the big goals.
  • Automation: With PerformYard, you can automate performance reviews and surveys by setting reminders in particular time frames.
  • Visual progress: Its graphs and charts are excellent for visual performance tracking, helping you notice performance peaks and lows and potentially spot patterns behind them.

User reviews:

PerformYard customers review

G2: 4.7

Capterra: 4.8


  • Performance Management: price varies from $5 to $10 per user per month, depending on the number of employees
  • Employee Engagement: an add-on that can be purchased starting at $1 to $3 per user per month, depending on the number of employees

Best performance review software for small companies: Comparison table

Platform Features Pricing G2 Rating
Effy AI - Templates and questions
- AI tool
- Employee database
Forever free version, or paid version for $75/space/month or $900/space/year 4.9
Trakstar - Automated reminders
- Benchmarking
- Comprehensive dashboard
Custom price available upon request 4.2
15Five - Pre-made templates
- Engagement surveys
- Microlearning
- Engage: $4/user/month Perform: $10 /user/month
- Total platform: $16/user/month
BambooHR - 30-60-90 check-ins
- Customization
- Employee recognition
Custom price quote available upon request 4.4
PerformYard - Continuous feedback
- Automation
- Visual progress
From $5 to $10 per user per month + add-ons 4.7


Choosing the best performance management software depends on many factors, such as the number of employees, your budget, and your needs. Also, you should consider a tool that's easy to use, intuitive, and ideally combines more essential tools in one.

If you're looking for user-friendly performance management software for small businesses, Effy AI is the right solution. Plenty of pre-made performance review templates and questions are waiting for you, as well as our AI tool that saves you a lot of valuable time.

Sign up today to streamline your performance review process and watch how employee productivity and engagement increase.


Does a performance management system work for small businesses?

Yes, and it has many benefits, like improving productivity and spotting opportunities for growth and development. A small business doesn't need complex performance management systems, it can be enough to implement a simple tool within your budget.

How do you create a performance review program?

Follow these steps:

  1. Define clear goals and expectations
  2. Choose rating criteria and method
  3. Create standardized forms with questions
  4. Use software to automate the employee evaluation process
  5. Discuss results with employees
  6. Create development plans 

What is the best tool for performance management?

Finding the best performance management systems depends on many factors. Effy AI could be the best performance management software for small and medium companies or for anyone looking for a simple and quick solution that comes with plenty of templates and the help of AI.

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.
Choose templates that are right for you. Start review process in 15 min.
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
Read More
Jan 30, 2024
5 min read
5 Best Employee Development Software for 2024
Read More
Jan 20, 2024
5 min read
Goal-tracking Software: Top 5 Tools for Your Team
Read More
Set up your first
Performance Review with Effy
Use effy for free
Use this template for free